What is a Status Certificate?
If you are buying a property under a condominium corporation, it is important to consult with a real estate lawyer to ensure a proper review of a status certificate is complete prior to firming your deal. A well-drafted agreement will ensure that an offer to purchase is conditional on the buyer’s review of a status certificate.
A status certificate is a document that gives important details as to the status and financial health of a condominium corporation for both the specific unit and the condominium building in general. A status certificate will provide your real estate lawyer pertinent information that may impact your decision in purchasing a property. Information that a status certificate will outline includes the monthly common expenses and if the current owner is in default of payment on same, if the condominium corporation has any judgements or ongoing litigation against it, and the adequacy of the reserve fund. Your status certificate will also include other important documents such as financial statements and proposed budgets, certificate of insurance, declarations and bylaws.
A condominium corporation’s financial well-being impacts all unit owners. If you are considering purchasing a condo unit, make sure you ask your real estate lawyer what the status certificate reveals and how it may impact you.