When you are buying or selling a resale condo, the most important document in the deal is the status certificate. Buying a condo is somewhat like buying shares in a company. Your best interests lie in ensuring that the corporation is in good health.
It’s crucial to include a status certificate condition on any offer. But what exactly is it, and why is it so important?
Essentially, the status certificate is a report on the current status of the condominium corporation. It helps to answer crucial questions about your condo, including:
▪ Are pets allowed?
▪ Is a locker or parking spot owned or rented?
▪ How much is in the reserve fund for repairs?
▪ Are there any special assessments that I will have to contribute to?
▪ Is the condo currently going through any lawsuits? If so, is there enough insurance to pay for such legal issues?
▪ Are there any major repairs that need to be done on the building?
▪ What are the hours of the fitness room and pool?
▪ Who is the property manager?
Giving your lawyer an opportunity to go over the status certificate of a condo you are interested in purchasing is essential before the offer goes firm to protect your best interests. At the very least, it’s important to know what a status certificate is, and how it can affect the purchase of a condominium.