How To Know If The Condo You Want Is In Good Standing Order
Thursday Oct 25th, 2018
When you’re buying or selling a resale condo, reviewing a condo’s status certificate is highly recommended. A similar role of a home inspection, a status certificate will provide an in-depth overview of a condo building’s management policies, financial statements, the general health of the building as well as any particulars for the individual condo unit. Anyone may request a status certificate for a specific unit in the corporation and the corporation must provide the certificate within 10 days. The fee to obtain a Status Certificate is typically around $100, however may vary across condo corporations.
Why would a buyer want to request a Status Certificate?
Well, the information contained within the status certificate and accompanying documents are vital from a buyer's perspective to fully understand the status of an individual unit and the overall operation of the condo corporation. One of the key details prospective buyers should review in this document is regarding the reserve fund. A reserve fund is essentially a savings account to meet the future costs of upkeep and any unexpected costs that may arise for the building.
What content is mentioned in the Status Certificate?
Certificate content includes, but is not limited to....
- Statement of common expense (including default for the unit, if any)
- Amount payable by the unit for common expenses
- Particulars of any increase in common expenses for the unit since the date of the current year budget. Also, reasons for any increases would be provided.
- Statement concerning any assessments relating to the reserve fund since the date of the budget for the current year.
- Info concerning any applications regarding amendments to the declaration.
- Status of any legal actions being taken against the condo corporation.
- Current budget and recent audited statement.
- Copy of current declaration, by-laws and rules. (eg. are pets allowed in units? If yes, what are the restrictions if any)
- Listing of various agreements (eg. management, insurance etc)
- Owner compliance with current agreements regarding modifications that relate to the unit.
- Particulars concering the most recent reserve fund study and the amount of the fund including any current plans to increase the fund.
- Number of units leased of the fiscal year preceding the status certificate date.
- Any planned or proposed additions, alterations or improvements to the common elements.
Source: 2016 Real Estate Council of Ontario