13 Oct Status Certificates
More and more often, developers are turning to condominium ownership structures in designing their communities and condominium communities are becoming more prevalent. If you are contemplating a transaction involving a resale condominium or if you are refinancing an existing condominium it is always wise to order a Status Certificate (a mortgage lender will require it anyway). These days, condominiums are not only tall buildings, but also include common element condominiums such as a townhome project where streets, snowploughing, landscaping and the roof may be subject to condominium ownership and run by a property manager. The status certificate is a regulated form prepared by the property manager that sets out key information about the condominium, such as whether there are any arrears of common expenses on the unit, lawsuits pending against the condo, whether units in the building are rented out or commercial units and other pertinent information. The package will also include the condo’s financial statements, budgets and an overview of condo rules. It can also provide insight into whether common expenses are expected to be increased or if the condo’s reserve fund for major projects (i.e. roof repairs, elevator maintenance, etc.) is adequate. If you are purchasing a resale condo, your agreement of purchase and sale should always be conditional upon your lawyer’s satisfactory review of the condo status certificate.