A status certificate contains pertinent information about the individual condominium unit. It provides important information that may not be available on realty websites or condo boards. Status certificates are especially crucial for prospective purchasers of resale condominiums since they include vital details about the organization and the unit of interest.
Status Certificates for Beginners
Buyers of resale condominiums can obtain a status certificate, which is a document that gives a picture of the unit as of the day it is granted, from the condominium organization. If a property management business is in charge of the building, the property manager usually prepares it. The Condominium Act permits a $100 fee to be charged for the status certificate, and the certificate must be sent to the potential buyer within 10 days after the request date.
What Information Is Included?
- the management contract
- any special assessments that the condominium board may have imposed
- the names and addresses of the corporation’s directors and officers
- details on the unit’s common expenses
- copies of the condominium declaration, by-laws, and rules
- Insurance
Among other information, all of which should be considered crucial to know before purchasing the resale condo.
- Read: Comparing Costs: How Many Condos Equal the Price of an Average Single Detached Home in Canada?
Why Do I Need A Status Certificate?
Lenders and buyers will almost always request a status certificate because it will reveal any hidden or unexpected liabilities. In fact, when a conscientious vendor lists their unit, many of them will also order a status certificate. By doing this, they can easily provide it to a buyer who is very interested in the unit. Most of the information will be available to assist the buyer in making a quicker decision, but it will need to be updated to ensure that there haven’t been any changes since the status certificate was issued.
As previously indicated, a status certificate will contain details about increases in common expenses, whether the building is the subject of a lawsuit, and any significant maintenance costs. When purchasing a condominium, a buyer should be especially aware of the corporation’s reserve fund and make sure there is enough money to support any ongoing maintenance and repairs of the building’s essential capital items. This might be accomplished by making the Agreement of Purchase and Sale contingent upon the buyer obtaining a status certificate, examining it for a few days, and confirming that everything is agreed upon.
However, status certificates are not mandatory, and condos can be purchased without obtaining one.
Where Do I Get A Status Certificate?
A status certificate for a condo corporation can be ordered by you or your real estate agent. You only need to give management or the condo company a written request and the $100 charge (plus HST).
Are you looking to enter the real estate market this summer? Give us a call today! One of the experienced agents at Zoocasa will be more than happy to help you through the exciting home-buying process!
