A Review of a Current Status Certificate is an Important Step in Purchasing Any Condo.
What does that mean?
When buying a condo, your Real Estate Representative should include a condition that allows you to review a current status certificate. There are a few different steps in a condo purchase compared to buying a house that you should be aware of.
Condo buyers should be aware of the unit’s status certificate. It provides important details about the unit you are interested in, as well as the entire condo corporation.
Information contained in the a curent status certificate is importatnt & and we recommend making a purchase agreement conditional on its review by both you and your real estate lawyer.
Please be aware that the condo corporation can take up to 10 days to provide a copy of a current certificate for the unit you are interested in. A typical legal review of this document by your real estate lawyer may take three to five additional days.
If the Seller offers you a version of the status certificate that they have previously obtained, the certificate’s information could be out of date & inaccurate. It is is recommended to order a current copy directly from the condo corporation & property manager.
Some noteable important details contained in the status certificate are:
- The condominium’s declaration, bylaws and rules. Condos have rules regarding pet ownership, noise, balcony furniture, decorations, and even curtains and flooring material. Make sure you review these rules & are comfortable with them.
- Typical fees that need to be paid. Here, you will discover how much you should be paying in monthly fees for maintenance, landscaping & utilities in common areas. Also it will give you information on any special assessment fees that owners are responsible for.
- Seller up to date & current on fees. It is not uncommon to come accross owners that are behind on monthly fees. In these cases, it’s the new owner’s responsibility to catch up the arrears or hold the Seller accountable to bring these unpaid fees up to date before transferring the property or the new owner may have to assume responsibility.
- The financial status of the condo corporation. These details are included in the status certificate, and can show you whether there is sufficient funds in reserve to cover future repairs. If the reserve fund is not sufficient, a perspective Buyer may see an increase condo fees or have to pay for a special assessment.
- Full Ownership of the any included parking space or locker. The certificate will detail to you if parking & lockers personally owned, or if they are a common element with exclusive use that the corporation assigns to you. Please make sure to confirm that the declaration documents match with the purchase and sale agreement in details such as the unit number, parking space number and locker number.
- Be sure to know what they’re buying. Similar to a house inspection that may help you understand the physical condition of a house, a review of the status certificate helps condo buyers ensure they are making a purchase that suits their needs.
- Status certificate reveals something unexpected. Please ensure any agreement to purchase is conditional upon its review. If it does not seem like a good deal, you can cancel the agreement & get your deposit back.