When buying a condo, you’re given the option of requesting for a status certificate before the offer is “sold firm”. There is no legal obligation to obtain one before purchasing a condo, however it is highly recommended that you do.
Your Realtor will typically include a clause that contains two parts:
1. Request that the sellers provide a copy of the condo’s status certificate, and
2. Conditional upon the review by your lawyer
The status certificate is a document, prepared by the Board of Directors, which outlines important information concerning the overall state of the condo corporation. The document details things such as how the building is managed, if there are any pending lawsuits, and the overall financial health of the condo corporation.
The status certificate is often packaged with other important documents such as the condo declaration, by-laws, budget, reserve fund, insurance certificate and financial statements.
The status certificate typically costs $100 (+ HST) and is often paid for by the seller.
The document outlines everything you need to know about the condo upfront so there are no surprises. If you’re buying a condo, this is definitely one piece of document you don’t want to close without!