Status Certificate Condition is one of the most commonly seen conditions on the Agreement of Purchase and Sale for Condominium. What is it and why is it important for the seller to preorder it and for the buyer to get to your solicitor for review before the purchase is finalized?
Main and most common section of the status certificate:
1. General Info – Mailing Address of the Corporation, Property Management Contact information, Directors and Officers of the Corporation
2. Common Expenses – basically maintenance fee – what is covered – locker, parking, other amenities
3. Budget – gives an idea of the potential maintenance fee increases
4. Reserve Fund – "rainy day fund" of the corporation – covers unexpected repairs or high cost maintenance, such as roof, installing new windows, etc. In the case of scarce reserve funds extra maintenance cost is levied on the unit owners
5. Legal proceedings and claims – gives an answer on whether the Corporation is a party to any legal action
6. Agreements with owners relating to changes to the common elements
7. Leasing of unit – provides information on how many units were leased during the fiscal year
9. Rights to view and obtain copies of agreement
For the buyers: obtain status certificate before firming up the sale, you want to make sure, you are getting what you paid for.
For the sellers: you might want to pre-order your status certificate before putting your condo on the market. It might take up to 10 days for the condo corporation to provide the requested document and you really don't want to be in limbo for additional 10 days once you have an offer on your home.
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Compliments of Marina Gavrylyuk
Real Estate Agent with Sutton Group Summit Realty