STATUS CERTIFICATE 101
The status certificate 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.
Property management 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, for an extra cost.
The majority of status certificates can now be ordered online and most are passed along electrically. I honestly don’t remember the last time I had to drop payment off at a Property Management office and pick up the hard copies to deliver to a lawyer for review.
The items that are included in the status certificate include:
- If the owner is up to date on paying their maintenance fees
- Any special assessment that might be planned
- Details of the reserve fund
- If there are any judgements against the corporation or if the corporation is suing a unit owner
- The number of units that are leased in the complex
- A copy of the proof of condo insurance
- It also includes copies of the Declaration, rules and by-laws and the budget
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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