If you are thinking of investing in a condominium unit, you may have heard about status certificates. But what exactly is a condo status certificate? Read on and we’ll explain for you.
In Ontario, every condominium is managed by a condominium corporation, which has a variety of responsibilities under the Condominium Act, 1998. The responsibilities of the condo corporation include managing and administering the assets and common elements of the condominium, plus enforcing the bylaws of the corporation and ensuring that unit owners comply with the Condominium Act.
According to section 76 (1) of the Condominium Act, 1998, a condominium corporation must “give to each person who so requests a status certificate with respect to a unit in the corporation.” The status certificate is a document that reports on the current state of the condominium corporation, providing vital information to anyone who lives there or is planning to buy a unit there.
According to the Condominium Act, a condo status certificate must specify the date on which it was made and, among other things, must contain the following information:
If any of the required information listed above or elsewhere in the condominium act is absent form a status certificate, it is deemed that there is no such information.
You must request a condo status certificate form the relevant condominium corporation. The corporation is allowed to charge you a fee for the certificate but must provide the certificate with 10 days of the request and payment.
Once received, as you can see from the substantial list above, you will have a thorough and clear picture of the status and health of the condo corporation. Using this document, you can tell exactly how much you will have to pay when you take ownership of a condo unit and the likelihood of that amount increasing in the near future. The reserve fund in particular will give you a good idea of the management of the condominium and whether you’re likely to face a financial shock for any future repairs.
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