Why a condo’s status certificate is important

News Source: http://www.canadianmortgageupdates.ca/

   

When buying or selling a resale condominium, the most important document in the deal is the status certificate.

It answers such important questions as:

• Do I own the parking or locker?

• Are pets allowed?

• What are the pool hours?

• How much is in the reserve fund to look after future repairs?

• Are there any special assessments because there isn’t enough money to pay for needed repairs?

• Is anyone suing the condominium and is there enough insurance to pay for it?

• Who is the property manager?

Most deals are conditional on the buyer’s lawyer being satisfied after reviewing all of the condominium documents, including the status certificate.

In my experience, there are no easy rules to provide guidance. A reserve fund might have over $1 million dollars in it, but the building could need over $2 million in repairs. Another building might only have $200,000 in the reserve fund, but could have completed all repairs that would be needed for years to come. You get the picture.