What is in the Status Certificate?
A status certificate is an important legal document which may be requested by a purchaser or any other interested party. It’s kind of like a home inspection on a house but you have your lawyer review the details of the corporation instead.
The main purpose of the status certificate is to allow potential buyers an opportunity to review various documents pertaining to the corporation to make sure they will feel comfortable with the condominium and the lifestyle it offers the residents.
The property management company legally has 10 calendar days to prepare the documents for a standard order. The cost is $100.00 and they will not start preparing the documents until the full payment has been processed. Many property management companies offer an expedited service; 2 or 5 days, but it will cost extra.
The majority of status certificates are ordered online and most are passed along electrically.
The items that are included in the status certificate include:
The Status Certificate is made up of two parts, the certificate and the attachments. The responsibility of the Board of Directors with regard to Status Certificates is set out in the by-law. The by-law allows the Board to delegate the signing of the certificates and this is done by a motion at a Board meeting. Due to the quick turnaround time, it is usual practice to designate the management company, or the person responsible for preparing the certificate, as the signing officer. The person completing the certificate is responsible for the content, and they should carry appropriate errors and omissions insurance. The certificate should have two signatures, and the Board should review the certificate and its attachments annually to ensure that it is complete and correct.
Lastly, a Status Certificate is only valid for the date that it is signed but most residential lawyers are ok with reviewing a status certificate that is a few weeks old provided it was ordered and received within the same calendar month.
If you have any additional questions regarding condominium Status Certificates, please do not hesitate to get in touch.
Read more about condominiums:
The Reserve Fund
What are Common Elements?
Costs Associated with Condo Ownership
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