When purchasing a resale condo unit, the buyer’s offer to purchase is usually conditional upon a few items but one unfamiliar item for first time condo buyers is the lawyer’s review of a status certificate. What is a status certificate you ask?
How it works is this – Depending on what is stated in the offer to purchase, either the seller or the buyer orders and pays for, usually $100 (inclusive of gst) a book-like document from the condo corporation, who then has ten business days to prepare the document. This document outlines all the rules and regulations of the condo and what is expected of the owners who live in the building. It also provides information on the financial standing of the corporation (the reserve fund), what is included in the maintenance fees, whether there is an increase scheduled in the near future and if the current owner is up-to-date on their payments. This document is then reviewed by the buyer’s solicitor. Once the buyer agrees to all the information outlined in the document, the status condition can then be waived by the buyer’s realtor.
In situations where there are multiple offers, realtors and buyers may waive this condition all together. Even though it may be waived, it is still a good idea to order a status report.
If you are interested in purchasing a Toronto condo, contact me.