You’re going to put in an offer on a condo and you found out there is something called a Status Certificate and it has to be reviewed…? And you’re thinking, I just need to put in an offer. What’s a status certificate and why does it need to be reviewed?
Well, first off, a status certificate is a very lengthy document that has all the current information about the condo and it’s always being updated as things happen at the condo too.
The reason why it’s so important to be reviewed before you purchase a unit is because there is information that you as a new home owner in the building needs to know especially if it’s going to affect ONE: your enjoyment of living there for example scheduled construction and TWO: possibly financials, there could be an increase in maintenance fees happening right when you take possession.
Short list of what is in a status certificate
I’m going to give you just a small list of what a status certificate has:
- Financials with current budgets and expenses
- It has all the condo rules
- Any liens on the condo
- Any special assessments
- The amount of the reserve fund
- What is the exact maintenance fee for that particular unit
- Any legal issues the condo is dealing with
- The number of units that are leased in the building versus owners living there – that’s very important
- What is the minimum term lease for the building – good to know if you do or don’t want to live in a building that allows short-term rentals
- Building insurance and what it covers
- Information on upcoming repairs and maintenance
This list does go on but these are the key ones worth mentioning.
Have your lawyer review the status certificate
I mean there is a lot of information in a status certificate and a lot of legal information too, which is why you should always always have your lawyer review the status certificate. Depending on the situation and the market, of course, you may want your lawyer to review the status certificate prior to putting in an offer or you could make the offer conditional upon your lawyer’s review of the status certificate. Either way, I highly recommend your lawyer review the status certificate and advise on any red flags or things you should be aware of.
How long it takes to get a status certificate
Also, keep in mind it could take up to 10 business days to get the status certificate once requested. Either the condo management will have a current copy or they may direct you to a site where you could request a copy. A status certificate varies in price between $200-300 but worth it if you’re considering purchasing.
I hope this information was helpful and you understand how important reviewing a status certificate is when purchasing a condo.
Thank you so much for taking the time to this blog!