28 Jan Condo Status Certificate
What is it? A condo status certificate is a document provided by the condominium corporation to buyers of resale condos that provides a snapshot of the unit as at the date that the certificate is issued.
What information should you expect to see in a condo status certificate?
- The financial status of the condo, including the most recent reserve fund study. This study provides information on the amount of money in the reserve fund and plans for the reserve fund in the next 90 days.
- The common expenses for the unit
- Any special assessments that may have been levied by the condominium board
- Copies of the condominium declaration, by-laws and rules
- A current budget for the condominium corporation
- The names and addresses of directors and officers of the corporation
- Information regarding insurance
- The management contract
- Minutes of the last general meeting
You should also expect to see:
- Is there any increase in the common expenses by the condominium board
- The amount of money in the reserve fund
- Is the current unit owner in default of paying the monthly common expenses
Reviewing the condominium status certificate will give you an account of the financial and legal circumstances of the specific unit, the building and the condominium corporation. It will give you a good indication of how well the building/complex is run and identify any additional or unanticipated liabilities that come with purchasing a condo. It is also important because it is a necessary document for lenders who may provide financing for you to purchase the unit.
Who prepares the Condominium Status Certificate?
In most cases, if the building or complex is serviced by a property management company, the status certificate is prepared by the property manager.
When and where do I get one? A prospective buyer must receive the condo status certificate within 10 days of the date of their request. Some Sellers will order the status certificate when they put their home up for sale so that the certificate will be available.
A condition relating to the request and review of the status certificate of the condominium corporation by your lawyer should be included in an offer for a resale condo. Typically the buyer requests the certificate as part of this condition and pays the $100 fee.
How much does a condo status certificate cost? According to the Condominium Act, a $100 fee can be charged for the certificate, but prices can go up when requesting an expedited status certificate, or if the parking and locker belong to different condo corporations than the suite. Another thing to keep in mind is that a status certificate can be deemed stale dated after 30 days, so an updated version may need to be purchased if the original is some months old.