ondo Status Certificate
What is a Condo Status Certificate?
The condo status certificate is a document that provides an important snapshot by the condo corporation to buyers of resale condos.
What information can I find in a status certificate package?
A status certificate discloses information to a potential buyer about the condominium corporation’s management structure, common expenses, the current budget, any legal issues or proceedings, unit leases, insurance, upcoming repairs or maintenance and the corporation’s reserve fund; as outlined in Section 76 of Ontario’s Condominium Act.
The financial statements outline expenditures, receipts and the current year’s budget which gives you and your lawyer a good indication of how healthy the property is.
Information explaining if the current unit owner is in default of paying the monthly common expenses
Information regarding an increase in the common expenses by the condominium board
The amount of money in the reserve fund
Things that you should expect, by law, to see in a condo status certificate:
Information regarding the common expenses for the unit
- Any special assessments that may have been levied by the condominium board
Copies of the condominium declaration, by-laws and rules
A current budget for the condominium corporation
The names and addresses of directors and officers of the corporation
- Information regarding insurance
- The management contract
Minutes of the last general meeting
- A copy of the most recent reserve fund study. This is a study that not only states the amount of money in the reserve fund, but also any financial plans of the reserve fund that are to occur within 90 days of the status certificate, including any plans to increase the reserve fund
in short, a Condo Status Certificate is required by the buyer’s lender. It assesses the financial and status of the fees. The lender is looking for minimal risk in lending on a condo in an fees.
How long does it take to get a condo status certificate?
Once you submit your request for a status certificate, you should receive the package within 10 days. Some condo corporations will rush the order for a fee, if you need it quickly. Once you receive the package, you and your real estate lawyer usually has 48 to 72 hours to review the documents and make a decision.
How do I get a status certificate?
In most cases, if the building is serviced by a property management company, it is prepared by the property manager. The certificate must be given to the prospective buyer within 10 days of the date of the request, and the Condominium Act allows for a $100 fee to be charged for the status certificate.
According to geowarehouse
How to Get a Condo Status Certificate Online
The purpose of status certificates is to allow potential buyers of condo units to have as much information as possible about their unit as well as the physical and fiscal situation of a building. Certificates also allow prospective owners to find out what the rules are, including whether pets are allowed.
A condo status certificate is a large document that can be 100 pages in length or more. The condo status certificate must be provided when requested by an owner. It can come with an administrative charge, charged by the condo corporation at a cost of over $100, and can take up to ten days to be provided.
A condo status certificate is essential because it provides important information about the financial status of the subject condo (unit). It will provide the prospective owner with intelligence, such as whether or not the previous owner was up to date paying their condo fees, if there are increases in condo fees that are about to come into effect and if there has been a lien placed on the condo for any reason.
It also provides vital information about the condo corporation. This information includes by-laws, the amount of the reserve fund, the condo corporation’s insurance, minutes of the most recent annual meeting, disclosure of any lawsuits pending against the corporation, the condo corporation’s budget, and more. It can also reveal rules about the condo such as whether or not owners can have pets.
Historically, the process of obtaining a condo status certificate has been as follows:
- A REALTOR or lawyer would request the condo certificate from the condo corporation or management company in writing.
- Payment for the administrative fee had to be made
- The property management company on behalf of the condo corporation may have taken up to 10 days to prepare the condo status certificate.
- The condo status certificate had to be retrieved from the condo corporation or property management company
Delays obtaining a condo status certificate prior to making an offer can pose certain challenges..
In many cases a condo status certificate can be requested online through GeoWarehouse. REALTORS® can request the condo status certificate online, make payment online using a major credit card, receive an email notification when the condo status certificate is ready, download an electronic file containing the condo status certificate, and then email it to the solicitor who is acting for the purchaser.
Obtaining a condo status certificate online through GeoWarehouse takes the pain out of going through the motions of obtaining a condo status certificate for your clients.