What is a Status Certificate and why is it important?
Wednesday May 22nd, 2019
A Status Certificate is a short report on the current status of a condominium corporation. If you are buying a resale condominium, it is important that your agreement of purchase and sale is conditional, upon review of the Status Certificate by your lawyer.
The Status Certificate provides valuable information directly from the condominium corporation, examples of such information include arrears or increases in common expenses; Whether any major work needs to be done to the building(s); The amount of the reserve fund and whether the reserve fund is sufficient for any major work. The Status Certificate also provides information about any claims against the corporation and whether the corporation is involved in any proceedings. If you are buying a condominium, you need to know of any potential significant increase in your monthly common expenses. .
The Status Certificate package includes the corporation’s financial statements, declaration and by-laws. The financial statements are a good indication of a corporation’s financial stability. The budget for the current year will be included, and the amount of the reserve fund. The declaration outlines the rules and regulations of the corporation, for example whether you can keep pets.
The Status Certificate cost $100.00 and is the responsibility of the Seller to order it from the Condo Corporation. When you list your home for sale with Team Bev MacLean, we will order the Status Certificate for you, pick it up when ready and deliver it to the buyer’s lawyer for review, making your move a little less stressful. If you have any questions about the Status Certificate, give us a call, we are always happy to hear from you.