Condominium Unit: The exact boundaries of each condominium unit are identified in a condominium plan. This unit space is usually bound by walls, floors, and ceilings. Owners are responsible for the maintenance, repair, and remodeling of their unit. Board permission is typically required to remodel a unit in case the changes impact the common property.
Bare Land Units: In a bare land unit, you buy the actual land and anything built on it. Usually the exterior walls, the roof, the foundation, driveway and at least part of the landscaping are part of the condominium unit and must be repaired and maintained by the individual unit owner. However, the exterior repair and maintenance obligations of the individual bare land unit owners may be transferred to the condominium corporation through the registration of properly worded bylaws.
Boundaries of condominium units
9 (1) Unless otherwise stipulated in the condominium plan, if
(a) a boundary of a unit is described by reference to a floor, wall or ceiling, or
(b) a wall located within a unit is a load bearing wall, the only portion of that floor, wall or ceiling, as the case may be, that forms part of the unit is the finishing material that is in the interior of that unit, including any lath and plaster, paneling, gypsum board, panels, flooring material or coverings or any other material that is attached, laid, glued or applied to the floor, wall or ceiling, as the case may be.
(2) Notwithstanding subsection (1),
(a) all doors and windows of a unit that are located on interior walls of the unit are part of the unit unless otherwise stipulated in the condominium plan, and
(b) all doors and windows of a unit that are located on exterior walls of the unit are part of the common property unless otherwise stipulated in the condominium plan.
(3) For the purposes of subsection (2), a reference
(a) to a door includes the door, the door frame and the door assembly components, if any, but does not include the door casing, trim or mouldings, and
(b) to a window includes the glazing, the window frame and the window assembly components, if any, but does not include the window casing, trim or mouldings.
(4) Notwithstanding subsections (1) and (2), if a condominium plan was registered prior to January 1, 1979, the common boundary of any unit described in the condominium plan with another unit or with common property is, unless otherwise stipulated in the condominium plan, the centre of the floor, wall or ceiling, as the case may be.
RSA 1980 cC-22 s7;1996 c12 s5 Source: Condominium Property Act
CASH FLOW: The collection and expenditure of money over time.
CASH FLOW METHOD: A method of developing a Reserve Funding Plan where contributions to the Reserve fund are designed to offset the variable annual expenditures from the Reserve fund.
CATEGORY: A group of associated reserve items.
DEPRECIATION: ASSOCIATED uses straight line depreciation. Defined as the Present Cost divided by the Expected Life and multiplied by the sum of the Expected Life less the Remaining Life. Depreciation for a new reserve item begins at zero and ends with the replacement cost of the component. (Present Cost – Net Present Value) = Deprecated value of the component)
EFFECTIVE AGE: The difference between Expected Life and the Remaining Life. Not usually the same as the chronological age.
EXPECTED LIFE: The estimated time, in years, that a reserve item can be expected to perform its intended function.
FINANCIAL ANALYSIS: That portion of a Reserve Study which evaluates both the present and the future association reserve fund. Recommended Reserve contributions are calculated, and the projected Reserve income and expense over time is presented.
FULLY FUNDED: 100% Funded. When the actual or projected Reserve balance is equal to the Fully Funded Balance. Occurs when the funds in the reserve account are equal to the Depreciated Value of the assets.
FULLY FUNDED BALANCE (FFB): An indicator against which the Reserve balance can be compared. This number is calculated for each reserve item by year, then totaled.
NET PRESENT VALUE: The current value of the component less the depreciated value of that component.
NUMBER OF UNITS: A measurement used with the Unit Cost to calculate the Present Cost. Square feet, cubic yards, lineal feet are examples.
PERCENT FUNDED: The ratio of the actual Reserve Balance to the Fully Funded Reserve Balance expressed as a percentage. The value of the Percent Funded changes with time.
PHYSICAL INSPECTION: The portion of the Reserve Study that generates the reserve item inventory and the condition of the reserve items.
PRESENT COST: The cost of a component today. Consists of the Unit Cost times the Number of Units of that component.
REMAINING LIFE: The estimated number of years that an existing reserve item will serve its intended function.
REPLACEMENT COST: The cost of replacing a reserve item to a new condition. The Current Replacement Cost is the cost to replace a reserve item today.
RESERVE BALANCE: Actual or projected funds at year end that the association has available to defray future expenses. Also known as Reserves, Reserve Accounts, or Cash Reserves.
RESERVE ITEM: An element of a reserve category. Reserve Items consist of association facilities, which must be maintained or replaced by the association. Also known as a “Component”.
RESERVE FUND STUDY: A budget planning tool which analyses the current reserve fund and expected future expenses. A Reserve Fund Study consists of a Physical Inspection of the facilities and a Financial Analysis of the reserve fund.
RESERVE STUDY ANALYST: A qualified individual that prepares Reserve Studies.
SPECIAL ASSESSMENT: An assessment levied on the members of an association in addition to regular assessments. Special Assessments are often regulated by Governing Documents or local statutes.
UNIT COST: The present cost of a reserve item on a unit basis. Dollars per foot of fence is an example.
View RFS Sample Report Pages for descriptions of your report components.