A status certificate is a document provided by the condominium corporation to buyers of resale condos that provides a snapshot of the unit as it is at the date that the certificate is issued.
A buyer of a condominium unit should always make sure to make his Agreement or Offer to Purchase conditional on the purchaser receiving a status certificate, having a few days to review it, and being satisfied with its contents.
The condominium management company must provide the certificate to a prospective buyer within 10 days of the date of the request, and there is typically a fee of $100 that is charged by the management company for the certificate.
- A status certificate contains important information about the individual condominium unit. Among other things, the certificate would indicate
- if the current unit owner is in default of paying the monthly common expenses,
- if the condominium board has declared an increase in the common expenses,
- if the condominium is party to any lawsuits and/or
- if there is an adequate amount of money in the reserve fund.
A buyer should pay particular attention to the reserve fund of the condominium corporation and ensure that there are sufficient funds to cover any ongoing maintenance and repair of the condominium’s major capital items.
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