Three Key Things to Look for in a Condominium Status Certificate

When purchasing a condominium unit in Ontario, reviewing the status certificate is an essential step to ensure you're making an informed decision. The status certificate provides critical details about the condominium corporation and the unit you intend to purchase. Here are three key things to pay close attention to:

 

1. The Financial Health of the Condominium Corporation

One of the most important sections of the status certificate is the corporation’s financial details. Look for:

Reserve Fund Balance: This fund is used for major repairs and maintenance of common elements. A healthy reserve fund indicates the corporation is prepared for future expenses.

Special Assessments: If the corporation anticipates a shortfall, it may impose special assessments on unit owners. Be wary of any planned or ongoing assessments, as they could significantly increase your costs.

 

2. Pending Legal Actions

The status certificate will disclose whether the condominium corporation is involved in any ongoing legal proceedings. If the corporation is being sued or is suing someone, it could lead to higher expenses for unit owners. Such disputes can also indicate broader management or structural issues.

 

3. Unit-Specific Information

Pay close attention to any details about the specific unit you are purchasing:

Arrears: Ensure there are no unpaid common expenses for the unit, as these could become your responsibility as the new owner.

Rules and Restrictions: Confirm the condominium rules align with your lifestyle. For example, are pets allowed? Can you rent out the unit?

 

Final Thoughts

A status certificate provides valuable insights that can help you avoid unexpected financial or legal challenges after closing. To ensure you fully understand the implications, have your real estate lawyer review the document thoroughly before finalizing your purchase.

Author:

Rina You

Partner

e: ryou@realtycarelaw.com

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