The law in Ontario requires that every condominium corporation establishes a Reserve Fund Study (Capital Replacement Plan) within the year following the registration, and periodic planning to determine whether the amount of money in the reserve fund and the amount of contributions collected by the corporation are adequate to provide for the expected costs of major repair and replacement of the common elements and assets of the corporation. This demand is stipulated in the Condominium Act. Its objective is to forecast future major repair or replacement of common elements of the building, to lower the risk of unexpected repairs, and to ensure that proper funds will be available for those repairs when the time comes.

Reserve Fund Studies include the following items, which are required by The Condominium Act, Ontario Regulation 48/10:

	Class 1	Class 2	Class 3
Site Visit	Yes	Yes	No
Condition assessment (based on visual inspection)	Yes	Yes	No
Component Inventory	Full study, including quantification	Based on previous Reserve Fund Study report (no quantification)	No
Estimating the remaining life expectancy of main common components	Yes	Yes	No
Evaluating the fund status	Yes	Yes	Yes
Preparing a reserve funding plan	Yes	Yes	Yes
Preparing a Form 15 as required by The Condominium Act	Yes	Yes	Yes