A status certificate is an updated report on the state of a condominium corporation, as prepared by the board of directors for unit owners and prospective buyers. The status certificate offers insights into the financial well-being of the building and condo corporation, providing details on those who are responsible for running it and ensuring that you’re aware of every detail relevant to the building you’re considering an investment in. When purchasing a condo in the Greater Toronto Area, it is incredibly important that you obtain a status certificate of the building prior to completing the transaction. The documentation will allow you to evaluate both the financial and structural stability of the building and it’s many amenities, as well as the stability and reputation of the corporation that owns it. To ensure that you’re purchasing a building of high quality and in good standing, you’ll want the support of a professional real estate lawyer to ensure that no information slips through the cracks throughout the status certificate reviewal process.
What to Look For in a Status Certificate
When receiving a condo status certificate for review, there are a few key items you’ll want to be on the lookout for. They include the following items:
- A detailed current unit-owner monthly payment status
- An updated building reserve fund (most buildings in the GTA aim for $1 million reserve funds, so look for a number in that range)
- Information regarding the expenses commonly associated with unit ownership
- Copies of the condominium declaration, alongside Information regarding insurance
- A current budget for the condominium
- The names and addresses of directors and officers of the condominium corporation
- A copy of the most recent reserve fund study, in addition to minutes from the last general meeting.
Due to the level of detail and complexity that accompanies a condo status certificate, it can be quite overwhelming to work through alone. An experienced real estate lawyer has been through the process countless times and will be able to assess the opportunity and ensure that you’re fully aware of the finer details. Given the purchase size, you’ll want to do everything in your power to avoid completing a transaction without a thorough analysis of the status certificate.
How We Can Help
Seif Law Firm has been helping clients successfully complete real estate transactions for years. With detailed expertise in real estate law, our team is equipped with the tools and knowledge needed to ensure that you accurately assess the condo status certificate made available to you. We are focused on making our client’s lives easier, and we take pride in providing industry-leading service and support throughout the process. With multiple languages and unlimited meetings available, our team will always be there for you.
Seif Law Firm is an experienced team of real estate lawyers, offering industry-leading service and expertise to clients across the GTA. If you’re in the process of purchasing a condominium and are looking for expert support to ensure that it gets done correctly, get in touch with our team today!
