Part Two in the Condo Series
A status certificate is like a disclosure statement. It reveals important information that any condo buyer would want to know such as details about the condominium corporation’s financial status, reserve fund studies, whether or not condo fee payments are up to-date, any pending lawsuits or legal claims against the corporation or, any pending or contemplated special assessments or rule changes.
When buying a resale condominium, your offer should always include a condition upon you receiving and reviewing the Status Certificate and its attachments so you can ensure that you are satisfied that the condo is suitable for you with no surprises planned. The common practice in this area is that the buyer, often through their REALTOR®, orders and pays for the status certificate (more on that in a moment). The Condominium Corporation, usually through their property manager, then has a maximum of 10 days to issue the documents. Most buyers ask that the package be delivered directly to their lawyer for review and comment before conditions are removed.
The Condominium Act in Ontario clearly states that there is a maximum fee of $100.00 INCLUDING taxes that can be charged so, this is what you should be paying. CAUTION: I recently came across a situation here in Collingwood where the Property Management company attempted to charge my client $115.00. When challenged on the legality of that, they did back down and agreed to only charge the legal fee of $100.00. (Yes, I’m still pretty angry about their initial attempts!)
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg