STATUS CERTIFICATE 101
The status certificate, also referred to as The Estoppel, is a document that provides information on the financial status of a particular unit and the building’s condo corporation. It’s kind of like a home inspection on a house but you have your lawyer review the building financials instead. It is important for all condo buyers to have their lawyer review the status certificate and attached documents before signing off on their purchase. You do this by putting a condition in your initial offer.
What is in the Status Certificate?
The monthly fees, any large increase that is going to come into effect, any special assessments that might be on the table, and any arrears or lien that a particular suite might have.
It will also contain the condo declaration, by-laws, budget, reserve fund, insurance, management contract, rules, minutes of the last annual general meeting, and mention of any lawsuit involving the corporation.
The purpose of the status certificate is to allow potential buyers of condo unit to have as much information as possible about their unit as well as the physical and fiscal situation of a building. Certificates also allow prospective owners the opportunity to find out what the rules are, including any pet or leasing restrictions.
Management has 10 business days to deliver the said documentation to the buyer, according to the Condominium Act. It is normally a $100+HST charge and paid by either the buyer or the seller, depending on what was agreed upon in the Agreement of Purchase and Sale.
