This month I would like to touch on the topic of Status Certificates. As a resale condo buyer, remember you are buying a unit in a building and not an entire property, so it is important to understand the status of not only your specific unit, but the building also. The Status Certificate will give you insight into how that building is being managed, if there are any lawsuits and in simple terms it will give you a look into the fiscal health of the building.
The Status Certificate will also have detailed information on the corporations’ by-laws, rules and regulations; this is referred to as the condominium declaration. Here you will understand the smoking tolerances, pet policies, and balcony by-laws, etc. that the particular building has.
Arguably one of the most important details a lawyer can derive from the Status Certificate for a potential buyer is the amount of money in the reserve fund. This will indicate if the building is equipped to handle upcoming expenses, repairs and maintenance; these may be planned or unplanned. Knowing how much is in the reserve fund while understanding the outcome of the latest reserve fund study (which is commissioned every 3 years to determine major repairs and their timeline) can provide key insight into your maintenance fees and what to expect in terms of potential costs as a condo owner.
Working with a knowledgeable realtor to understand how and when to ask for the status certificate is critical; especially in the kind of market conditions we see in Toronto. If you have any questions on this, feel free to reach out to me.