At the end of its fiscal year an Ontario condominium corporation has a surplus in its operating budget. What does the Condominium Act, 1998 require it to do with the common surplus?
Correct Answer
C) Apply it against future common expenses or pay it into the reserve fund
Section 84(2) of the Condominium Act, 1998 says a common surplus must be applied against future common expenses or paid into the reserve fund and, except on termination, may not be distributed to owners or mortgagees of the units.
Why This Is the Correct Answer
Section 84(2) lists exactly these two uses for a common surplus.
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