Things You Need To Know About Condo Status Certificate
A condo status certificate provides all the essential information a potential buyer requires about the condominium. Here, some of the factors involved are the condo’s management structure, legal issues (if there are any), insurance, daily expenses, budget, future repair, etc.
Whether buying a resale condominium or one of the pre-construction condos, you, being a potential buyer, need to consider plenty of things. Some of the most common among them include the location, price, options of personalization, and repair costs. Many times, buyers neglect the importance of a status certificate, especially in the case of resale condos. What is it, and why is it important?
A Condo Status Certificate: Definition
As the name suggests, it is a kind of paper. However, it is more than just a piece of paper. Created by a condo project’s board of directors, it contains all the essential points related to a unit. In it, you find knowledge around the unit structure, its budget, insurance, and possible daily expenses. In addition, if there is a legal issue associated with the unit, the certificate will have mentioned it.
Important Information about a Condo Status Certificate
The certificate includes insights into the unit’s budget, which means you can figure out whether or not the condo is financially strong. Apart from this, the status certificate is useful in many ways.
- Information around Expenses
Assume you come across two condos in GTA for sale; one has a status certificate while the other doesn’t have it. Only the former provides you with correct details on the monthly common expenses. In addition, it also tells if the project’s directors have planned to increase the expenses in the near future.
Apart from that, the certificate discloses the amount of money available in the reserved fund.
- Information around Legal Circumstances
You may be in love with the unit’s structures and facilities promised by the seller, but you also don’t want to run into legal issues. When you invest in a condos project in GTA or anywhere else, ensure that the management provides you with a status certificate. It offers you insights related to the legal and financial circumstances related to the condominium.
Also, the certificate enlightens you about additional or unanticipated liabilities that come with the condo.
- Information around the Unit’s Fiscal Health
From everyday expenses to the current year’s budget, the status certificate contains plenty of things related to the condo on sale. This information enables you and your lawyer to understand the unit’s fiscal health. Also, it informs you about the future repairs the unit may require.
How to Obtain a Condo Status Certificate
It begins with the process of requesting the certificate. During this time, you need to pay a fee, which depends on the seller, area, and condo. You can negotiate the price with the project management team. It is necessary for the seller to provide the buyer with the certificate in just a few days.
Whether you are investing in a resale condominium or one of the pre-construction condos, make sure you follow all the legal steps to have a great buying experience.