A status certificate is an official document that outlines the current state of the condominium corporation at the time it is issued. Typically prepared by the property manager, the status certificate includes essential information that reflects the financial and operational health of the condominium.
Section 76 of the Condominium Act states the status certificate must include:
While it is not legally mandatory to have Simply Legal review your status certificate, doing so is highly recommended. Most lending institutions may require a review to limit their risk. The financial health of the condominium corporation affects the marketability of the unit and the potential for unexpected costs.
The best time to review a status certificate is before making your offer firm and binding. Always make an offer conditional on getting and reviewing the Status Certificate. This proactive approach allows you and Simply Legal to negotiate favourable terms in your Agreement of Purchase and Sale. For instance, if the status certificate indicates any defaults in common expense payments, simply Legal can include provisions requiring the vendor to settle those debts before closing.
If you cannot obtain the status certificate before making a firm offer, ensure your agreement is conditional on our review review. This way, if any issues arise, you can withdraw from the transaction without penalty.
When reviewing a status certificate, our legal team conducts a search for several critical indicators, including:
1. Accuracy: ensuring the unit number and property address are correctly stated.
2. Common Expenses: verifying the monthly common expense amount and searching for any defaults.
3. Legal Issues: identifying any judgments against the corporation or ongoing legal disputes.
4. Financial Health: Reviewing the corporation’s budget, reserve fund, and any special assessments.
5. Governing Documents: summarizing any rules or restrictions that may affect your use of the unit, such as pet policies.
We understand the complexities of status certificates and can help ensure you are making a well-informed investment.
As your legal representative, our role is to identify potential issues and disclose any areas of concern, empowering you to make an informed decision.
While we cannot provide a definitive opinion on whether you should proceed with the transaction, our comprehensive review of your status certificate will offer insights that guide your decision.
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Disclaimer: The content on this website is for general information only and does not constitute legal advice. For specific legal issues, contact Simply Legal or your own counsel. Simply Legal makes no guarantees about the accuracy, completeness, or reliability of the information provided. Content is current as of its publication date and may not reflect recent changes.
