A Status Certificate is a document disclosing important information about the property to help potential Buyers make an informed decision.
This is likely the most important document in your Purchase Agreement because:
- It will provide essential information concerning the financial status of the unit as well as the Condominium Corporation.
- It will advise prospective buyers of all fees, any large increases that may come into effect, if a Special Assessment that is pending, and any arrears or liens registered on that a particular unit.
- It allows potential buyers to have as much information as possible on the physical and fiscal situation with the building.
- It is ordered in real time so that the information you are searching for will be current to your purchase.
- It outlines the rules and regulations for the Condo Corporation.
When making a purchase, it is the Buyer’s responsibility to request a Status Certificate as a condition in the offer. Should there be a Special Assessment, the cost needs to be negotiated between the Buyer and the Seller. A Special Assessment is a financial obligation that may be imposed on unit owners in addition to regular fees. This is why offers should include a condition for the Buyer’s solicitor to satisfactory review the Status Certificate andand attachments.
What is included in a Status Certificate?
- A breakdown of the Reserve Fund showing the currently available money.
- Any current issues within the Condo Corporation or property that may require future funds outside of the common expenses (Special Assessment)
- If pets are permitted and what the guidelines are
- If your unit includes parking and/or a storage locker
- Who your property manager will be
- If there are pending lawsuits with the Condominium, and is there is adequate insurance for coverage
How do I order a Status Certificate?
- It is ordered through the Condo Corporation with payment due at that time.
- The Condo Corporation usually has 10 days to prepare and provide this document for the Buyer’s lawyer to review.
- Before Selling:It is important to know what to expect from your Status Certificate before your condo is listed. Are there any special assessments pending or coming soon? It is advisable to call your Condo Board before listing so that you are informed.