Definition
Money set aside for future capital expenditures or unexpected costs.
Example
The HOA's reserve study recommended increasing dues to fund the roof replacement scheduled in year seven.
Related terms
Frequently asked questions
What does Reserve Fund mean in real estate?
Money set aside for future capital expenditures or unexpected costs.
How is Reserve Fund used in practice?
The HOA's reserve study recommended increasing dues to fund the roof replacement scheduled in year seven.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.