When working with a new buyer client, part of my job is to educate them as to the elements of an offer. Different types of properties require different clauses and conditions. If they’re in the market for a resale condominium then chances are we’ll be including a condition that allows for the buyer’s lawyer to review the Status Certificate.
What’s in a Status Certificate anyway?
A status certificate is a document, or rather a group of documents, that outlines the rules, regulations, and financial health of a particular condominium corporation. All in all, the sucker is about an inch thick and it’s far from “light reading”. It is essential reading though.
Some of the more pertinent pieces of information found in these documents include:
Arrears or increases in common expenses.
The amount of the Reserve Fund and whether or not it’s sufficient to cover any major work.
Whether or not the Condo Corp is a party to any legal proceedings.
Whether or not there are any Special Assessments levied against the Condo Corp.
The number of suites known by management to be leased out, as opposed to owner-occupied.
Whether or not pets are allowed in the building, and if so, what restrictions apply.
What does all of this mean to me as a Purchaser?
Well, the financial well-being of the condo corp is certainly of great importance. Legal proceedings, special assessments (due to roof repairs, parking garage repairs, etc), and reserve fund deficits can result in direct costs to the condo owners.
As for the specific unit being purchased, the Status Certificate will show whether or not the seller is up to date with their maintenance fee payments.
Also, the rules and regulations need to be checked if you plan on owning pets in the building as some condos place restrictions on the number and/or size of pets allowed.
If you’re thinking of making a move and would like to know how we can help, please contact me for more info.