Toronto condos and houses have an entirely different legal structure that cannot be overlooked. A vital aspect of a condo is the status certificate for the building. The status certificate details the rules and by-laws for the condo corporation and the financial standing of the building, and any special assessments. Before purchasing a condo, a highly skilled real estate lawyer must review the status certificate so that you, the buyer, know exactly what you are heading into and whether you would be inheriting any previous owner deficiencies.
What Is In A Condo Status Certificate Package?
The status certificate documents include the legal structure of the corporation, who runs the condo board, the by-laws, the reserve fund, whether special assessments are in effect, the fiscal budget, the property management team, the maintenance fees (and what is included in the cost to the owner), whether any legal issues are in existence (we have seen many builders sued by condo corporations for deficiencies in the product.) Newer buildings have less of a historical track record to go by and likely a smaller reserve fund, at least in the first few years. Note that older buildings have higher annual costs due to larger repairs needed. Older buildings are not necessarily an issue; it’s simply a fact to be aware of when reviewing the status certificate with an excellent real estate lawyer. For all pet lovers, be sure to inquire about pet restrictions – some buildings do not allow dogs, dogs above a certain weight, or more than two dogs. We are big dog lovers, too – we always ask the question beforehand! No one wants Fido to be left behind.
➤ These resources should help you prepare when buying a condo:
- Questions To Ask When Buying A Condo in Toronto
- Condo Purchase Checklist
- What to Know When Buying A Condo
How Does One Get A Status Certificate?
Purchasing a status certificate is straightforward. The purchase is generally completed by either the listing Realtor. If the listing agent has not purchased the status certificate, the buyer real estate agent will buy the document package for your reviewal. The cost is $100 paid to the condo corporation. The property manager will access the documents and supply them within ten business days after ordering (Ontario rule.) Some property managers will rush the delivery for a higher fee. Any real estate agent worth their salt will ask the property manager some initial questions to determine whether it is worthwhile purchasing the status certificate or if it would be a better idea to move on to another condo building.
How Often Do Conditional Offers Fall Through
Why Is A Status Certificate So Important?
Condos are a different legal structure that governs aspects of your life (noise, pets, etc.) You must know what your legal obligations are before purchasing the condo. When you buy a freehold house, you do not have the same rules to live and abide by. If the condo corporation’s financials are not in good order, you would ultimately be responsible for the shortfalls and every other building owner. If you love your pet, like outdoor barbeques on a balcony, you mustn’t overlook the status certificate. Once you own the condo, you have a legal responsibility to honour.
➤ Are you researching for investment purposes? Check out:
Do not get caught holding the bag. You must know what you are getting yourself into. The risks are too high. Not only do you want a good condo investment, but you do not want to buy into a poorly run condo corporation or one in legal issues with outside parties.
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