Keep your Owners Informed!
A Maryland court recently entered a $1M judgment against the Tomes Landing Condominiums and its management company, MRA Property Management, for providing misleading budgets to prospective purchasers. Read more here.
Many, if not most Governing Documents require the Board to set aside “adequate Reserves” to care for the common areas. But what exactly are “adequate Reserves”?
Within a Reserve Study, the Reserve Component List contains life and cost estimates for the major assets the association is obligated to maintain, thus establishing the scope and schedule of Reserve projects. Typically, this list gets longer and more complicated as stray projects got added to the Reserve Study, making the Reserve Study gradually more unwieldy,
Sometimes, the answer is no. Yesterday a former client asked about their Reserve Study which we completed back for their 2010 Fiscal Year. They recently found out that the short maintenance road to the adjacent water tower is their responsibility to maintain, not the local water utility district. So they asked if we could update their Reserve Study to add this quantity of asphalt, and make the Reserve Study "right".