Ordering a status certificate before buying a condominium is a crucial step when considering condo living.
The status certificate provides a comprehensive snapshot of the financial and legal condition of the corporation, as well as the policies that could affect the resident’s ownership experience.
By reviewing the condominium documentation before buying, you could:
- Avoid unexpected costs or hidden financial liabilities
- Make sure that the rules and lifestyle of the condo align with your needs
- Avoid potential legal issues that could impact your investment.
The status certificate includes information about:
The financial health of the condominium complex: the maintenance fees, reserve fund balance and any outstanding debts or special assessments.
The rules and regulations: pet restrictions, rules about rentals and tenants, and what renovations are allowed in the condo units.
Any unit-specific details: unpaid fees or rule violations linked to the unit.
Any legal matters: pending lawsuits or legal disputes.
A copy of the corporation’s insurance policy.
In short, reviewing a status certificate, attachments and the minutes of the last meeting prior to firming up on a purchase is a safeguard that will help you make an informed decision about your condo purchase.
It should also provide you with more confidence about your move and should help your closing go smoother.
