CONDO STATUS CERTIFICATE: EVERYTHING YOU NEED TO KNOW!
Condo Status Certificate. You might have heard the term before, but do you really have a good understanding of what it is? A condo status certificate is actually a very important document to learn about and refer to when in the process of buying a condo, so I have included for you the answers to some questions you may have.
What is a Condo Status Certificate?
The condo status certificate is a document that provides an important snapshot by the condo corporation to buyers of resale condos.
Things that you should expect to see in a condo status certificate:
- Information explaining if the current unit owner is in default of paying the monthly common expenses
- Information regarding an increase in the common expenses by the condominium board
- The amount of money in the reserve fund
Things that you should expect, by law, to see in a condo status certificate:
- Information regarding 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
- A copy of the most recent reserve fund study. This is a study that not only states the amount of money in the reserve fund, but also any financial plans of the reserve fund that are to occur within 90 days of the status certificate, including any plans to increase the reserve fund
Why Should I Get a Condo Status Certificate
You may be in love with the unit, but do you know how well the building is run? Getting a condo status certificate will help any prospective buyer get an intimate account of the financial and legal circumstances of both the condominium building and the particular suite they are interested in. It is also important because it is a necessary document for lenders who might finance the condo unit.
The bottom line is that a condo status certificate will illustrate any additional or unanticipated liabilities that come with purchasing the condo.
Who Prepares the Condominium Status Certificate
Condo status certificates are usually prepared by the property manager if the building is serviced by a property management company.
When and Where Do I Get One?
Time is of the essence. A prospective buyer must receive the condo status certificate within 10 days of the date of their request. A prudent seller will order the status certificate when they list their suite for sale so they have readily available copies for any potential buyer.
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.
As you can see, condo status certificates are actually incredibly useful documents to obtain. They are important for lenders to understand if they want to finance the property, and they are beneficial to you as they provide a clearer picture of what it will be like if you own the unit you are interested in.
Always ask for one before purchasing a property and make sure you go over it with your real estate lawyer and financial advisor, as well as your real estate agent, to make sure you understand everything in it. If you have any questions regarding yours, please do not hesitate to contact me here!
(Originally published on www.ellidavis.com on 16 January 2019 and copyright (c) 2019 by Elli Davis)