A
Status Certificate is a report on the current status of a condominium
corporation. If you are buying a resale condominium, it is important that your
agreement of purchase and sale is conditional, upon review of the Status
Certificate by your lawyer.
The
Status Certificate provides valuable information directly from the condominium
corporation, examples of such information include, Arrears or increases in
common expenses; Whether any major work needs to be done to the building; The
amount of the reserve fund and whether the reserve fund is sufficient for any
major work.
The
Status Certificate also provides information about any claims against the
corporation and whether the corporation is involved in any proceedings. This is
important because if there are high value claims against the corporation and
the corporation’s insurance does not provide coverage; the corporation can
either increase the common expenses or levy a special assessment against the unit
owners. If you are buying a condominium, you need to know of any potential
significant increase in your monthly common expenses. .
The Status
Certificate package includes the corporation’s financial statements,
declaration and by-laws. The Financial statements are a good indication of a
corporation’s financial stability.
So, it is imperative to
have a qualified lawyer to review the status certificate carefully before
buying a condominium.
Be an informed
buyer
For more information contact your Toronto Mortgage Broker
at 416-920-9931
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