Before you purchase a condo it’s very important that you review the status certificate. There’s a lot of questions that will be answered and you’ll get information on things you might not have even thought to ask.
So… what important questions are answered in a status certificate?
What important questions are answered in a Status Certificate?
Here are some common and important questions that are answered in a status certificate?
First question, what are the Condo Rules and Restrictions?
Some common questions: Does the condo allow pets? If so, is there a maximum size?
Are you able to have a BBQ on your balcony or Terrace?
Are you allowed to make renovations and changes within the unit? And to what extent?
Does the building allow AirBnb?
This is just scratching the surface when it comes to condo rules and restrictions, it’s quite extensive but all these questions and more will be answered in the status certificate.
Second question is about maintenance fees and common elements: What is the exact amount of the monthly maintenance fees? This is very important to know. Maintenance fees are listed on the MLS, you might see it on realtor.ca or other apps that you use for searches but you always want to double check this amount against what is in status certificate because that the end of the day it’s the amount shown in the status certificate that you have to pay not what’s listed elsewhere.
Also, is the current owner in default of any common element fees? Are there any pending increases in monthly maintenance fees due to common elements expenses or special assessments? If so, how much will the increase be and when will that be happening?
All these questions will be answered in the Status Certificate.
Third question is regarding the Reserve Fund: Is there enough money in the reserve fund to pay for emergency repairs and updates? This is important to know especially as the new owner. That question will be answered in the Status Certificate
What about Rental Rules?
Fourth question is about Rental Rules: Whether you’re an investor or not it’s good to know what the rules are regarding renting out the unit. What is the minimum term lease for the condo? Are short-term rentals allowed like AirBnb? How many units in the building are rented out compared to how many are lived in by the owners? These questions will be answered in the Status Certificate
Fifth question is regarding Lawsuits: Is the condo corporation under litigation? Is there property insurance in place to pay just in case something does happen? This is also why the reserve fund is so important, is there enough money in the reserve fund to pay the legal fees? All these questions will be answered in the Status Certificate.
These are some common questions that a status certificate will answer. It does answer many more questions but this would end up being a very long blog. I wanted to give you the common ones.
How do I get a Status Certificate?
How do you obtain a status certificate? Well, you can get a copy by requesting it through the Condo Management. They might refer you to a website or link to order it. The cost is normally $200-300. It varies but worth it.
It must be reviewed by your lawyer
One very important note I want to make is that a status certificate should always be reviewed by your lawyer. It is a lengthy document, and lawyers dive deeper into it and look at the condo financials, audits, reserve fund study, insurance, the entire condo by-law and rules and much more. So, at the end of the day, status certificates are very important, answers a lot of questions, must be reviewed by your lawyer and well worth the fee to obtain one if you’re putting in an offer.
I hope this was helpful for you.
Thank you so much for taking the time to watch this video and we’ll see you in the next episode.