What is a Status Certificate:
So you’ve decided the condo lifestyle is right up your alley. Where to go from here? Once you’ve found “the one” during the offer process you will place a stipulation in your agreement that the condominium’s “Status Certificate” be reviewed and approved by your lawyer.
The Status Certificate is a document that provides information concerning the financial status of the unit and the condo corporation. Within that document you will find:
- The cost of the monthly condominium fees
- Whether or not there is any fee increase to be expected
- If there are any “special assessments” being conducted
- If the unit has any liens or is in arrears.
- The condo declaration, budget, bylaws, and rules and regulations
- The current status of the ‘Reserve Fund’
- Mention of any lawsuit involving the condo corporation
- Copy of the minutes from the last annual general meeting
The purpose of status certificates is to allow potential buyers of condo units to have as much information as possible about their unit, and the condominium corporation they will essentially be buying into as well.
As all of the rules and regulations are outlined in this document, this is where you can go to verify things like rules on pets, noise restrictions and outdoor fixtures.
Whether you’re buying a condo unit as an investment or to live in also plays an important role in a condominium status certificate as well. You will find the ratio of occupants within the status certificate – End Users (owner occupied) Vs Investors.