Reserve and repair fund rules in Ecuador
A common reserve fund is mandatory. It serves repairs of common property, urgent or unforeseen common expenses caused by force majeure such as accidents and earthquakes, and planned future expenses such as repainting the exterior or repairing roofs. It is formed with a surcharge of no less than five per cent on the common expenses and grows with fines, interest and voluntary contributions.
What the law says
Se establece la obligación de crear un Fondo Común de Reserva para reparaciones de los bienes de dominio común, para gastos comunes urgentes o imprevistos por fuerza mayor como accidentes y terremotos y para gastos programados que deban realizarse a futuro de acuerdo a la vida útil de materiales y elementos, como la pintura o recubrimiento exterior del inmueble y reparaciones de cubiertas y techos. Este fondo se formará por un porcentaje de recargo no menor al cinco por ciento (5%) sobre los gastos comunes, y se incrementará con el producto de multas, intereses y con aportes voluntarios.Last verified:
What this means in practice
The five per cent is a surcharge on the common expenses, not five per cent of the budget or of anyone's income. The regulation also sends the fines collected to the fund.
Where Unitify fits
Unitify keeps a balance per unit and records each contribution against the right unit. The size of the fund and what it may be spent on come from the law above and from the owners' decisions.
How this works in UnitifyQuestions and answers
- What does the law say about the reserve or repair fund in Ecuador?
- A common reserve fund is mandatory. It serves repairs of common property, urgent or unforeseen common expenses caused by force majeure such as accidents and earthquakes, and planned future expenses such as repainting the exterior or repairing roofs. It is formed with a surcharge of no less than five per cent on the common expenses and grows with fines, interest and voluntary contributions.
- Where does this come from, and when was it checked?
- The quotation is from Reglamento General de la Ley de Propiedad Horizontal, art. 31, at the official source linked on this page. It was last checked against that source on October 12, 2026.