What is Status certificate?

Status certificate is a brief report provided by the Condominium Corporation that gives information on the current status of the Condominium Corporation. If you are buying a resale condominium, usually your agreement of purchase and sale is conditional, upon review of the Status Certificate by your lawyer. Status certificate is to be reviewed by the purchaser’s lawyer for the following:

1. Reserve funds-The reserve fund represents the account that will be drawn from for ongoing maintenance and repairs of the building. A well-managed condo should have a healthy amount of cash in its reserve fund at all times

2. Arrears of common expenses for the unit in question-The Status Certificate will mention if the unit you are considering buying is in arrears or if the owner is up-to-date with their payments

3. Increase of the common expenses for the unit since the date of the budget for the corporation for the current fiscal year and reasons for such increase by the Board of Directors

4. Levy of any special assessment (e.g. new roof, replace heating system)against the units in project to increase the contribution to the reserve funds and reasons for the special assessment levied by the Board of Directors- It is important to know whether the current owner paid for these or will you be responsible for this?

5. Any judgment and any outstanding legal actions against the corporation or the Unit the purchaser is intending to buy, against the condo corporation and the status of any legal actions to which the condo corporation is a party. If there are any outstanding legal actions against the corporation you may be responsible for paying for the judgments or other results of these actions. Buyer beware

Condo Corporation is obliged to provide:

1. A copy of the status certificate

2. A copy of the budget of CC for current fiscal year

3. Last annual audited financial statements for the CC

4. Auditor’s report on fiscal statement

5. Copies of current declaration

6. By laws, rules and regulations

7. A copy of the certificate or memorandum of insurance for each of the current insurance policies held by the CC