A condo status certificate is a health report of the condominium corporation for which it was prepared. It was previously called an estoppel certificate.
Status certificates are generally ordered when a buyer submits an offer to purchase a unit in the condo complex. They will make the agreement conditional upon receiving one and their lawyer reviewing and reporting the findings to them. Based on the information revealed in the report, the buyer will decide whether they want to proceed with the transaction.
The cost of a status certificate is $100 maximum with includes taxes. A written request with the fee is made to the management company, who has up to 10 days to prepare it. The report will include the declaration, by-laws, budget, financial statements, rules, insurance certificate, etc. of the corporation. Also included will be the number of rented units in the complex, as this might be a factor for consideration by some buyers.
The status certificate must disclose the state of the reserve fund. This is the account that money is held in for future updating and repairs of the building(s). Also included are any possible lawsuits and any information regarding the future increase of the monthly maintenance fees.
If you are selling a condo, you might consider ordering a status certificate at the time you put the property up for sale. In most cases, a buyer will insert a condition in their offer requesting one and enough time for their real estate lawyer to review it. As a seller, with the status certificate in hand, you will have enough time to clarify any issues with the management company. By ordering the certificate early, you can save the 10 days the buyer will request in their condition.
Generally the buyer's lawyer will order another status certificate if the closing date is more than 60 days down the road. If you are the purchaser, be prepared to pay $100 for an updated one.
For more information, see the Ontario Condominium Act.
As with any legal transaction, HomesByOwner of Durham Region recommends you consult a real estate lawyer prior to entering into a written agreement.
See Durham Region Homes For Sale on HomesByOwner.com.
Learn more about Private Real Estate sales.
