Is it legal to assess to rebuild reserves in a condo association?

Answer Yes, it is legal to assess monies for reserves; a special assessment may be required.You can read your state condominium law covering reserve accounts, and then read your governing documents concer... Read More »

Top Q&A For: Is it legal to assess to rebuild reserves in a ...

What is the formula to determine the needed reserves for a condo association given the size and age of the condo properties?

The basic way is to identify the components there really is NO specific formula.Set a standard for replacement:Say any item that would cost $10000 to replaceNow you take the useful life span of the... Read More »

How should reserves be handled on the balance sheet for a condo association?

Generally, since there is no standard for accounting and financial reporting for associations, it's a good idea to handle your reserves in such a way so that the membership can easily understand th... Read More »

What is the average amount of reserves for a small condo association in Chicago?

Condominium associations save money in reserve fund accounts to replace major real estate components, such as roofs, windows, exterior doors, asphalt, club house and so forth, that all the owners o... Read More »

My condo association is making claims on a D and O policy for the legal defense of the association not for the directors Is this insurance fraud?

When you write 'association', you are referring to a person. Without a person, the 'association' has no voice with which to make any claims. If the person sits on the board of the association, then... Read More »