Overview of Our Status Certificate Review Service
In Ontario, if you are in the process of acquiring a condominium, it is crucial to have a thorough review of the status certificate by a competent lawyer. The status certificate is a comprehensive set of documents that reveal the financial condition of the condominium corporation and the specific unit you intend to buy. This certificate not only discloses the financial health of the condominium but also elaborates on the building’s rules and regulations, including guidelines on pet ownership and the use of common elements. For example, if you were to purchase a condo unit without realizing that dogs are not permitted, you could face an unexpected and awkward situation on moving day. Such unfortunate surprises can be effectively avoided by a careful review of the status certificate before the purchase agreement becomes binding. Therefore, ensuring a thorough examination of the status certificate is an essential step in the condominium purchasing process. It not only saves you from potential future complications but also saves time and money in the long run.
Scope of Review
Much like a thorough inspection is crucial when purchasing a house, reviewing a status certificate is a fundamental step in buying a condominium. At MBLAW, our expert lawyers diligently assess the contents of your status certificate package, identifying any potential red flags that could lead to increased maintenance fees, unexpected special assessments, or other future surprises.
The Form 13 is a key element of the status certificate that provides essential information about the unit and the condominium corporation. It typically includes the legal description of the unit, along with associated parking and locker information, if applicable. It also reveals whether the current unit owner is in arrears with maintenance fee payments and if there are any ongoing lawsuits against the corporation. Our lawyers meticulously scrutinize this form to uncover any potential issues.
The reserve fund study outlines the projected repair and replacement costs for major components of the condominium, like the roof and the elevator. It also shows how much money the corporation should ideally have in the reserve fund and the recommended annual contribution to the reserve fund. Understanding this study is critical to anticipate future special assessments or increases in maintenance fees.
The declaration and by-laws of the condominium corporation define the rights and responsibilities of the unit owners and the corporation. We help you comprehend these legal documents to ensure you’re aware of the condominium’s operational rules and regulations.
Reviewing the budget and audited financial statements of the condominium corporation gives you insight into its financial health. This review can reveal any potential financial risks that could affect you as a unit owner.
Examining the condominium corporation’s insurance certificate ensures that the building has appropriate coverage. We help you understand the policy’s coverage limits and how it might impact you in case of a major loss.
Upon the purchase of a condominium, new owners are often required to complete specific forms. Our team assists you in understanding and filling out these forms accurately to ensure a smooth transition of ownership.
Status Certificate Review Process
The process of reviewing a status certificate is a crucial step in purchasing a condominium. It requires meticulous analysis by a knowledgeable lawyer who can identify potential issues that could affect your investment in the future. Here, at MBLAW, we walk you through each step of this process ensuring your decision is informed and confident.
Initiate the Request
Start by filling out our contact form, specifying whether the status certificate review is part of an agreement of purchase and sale condition or a pre-emptive offer.
Once we receive your request, we assess our availability and confirm our capacity to meet your specified timeline.
Retainer Agreement and Document Request
Upon confirmation, we will send our retainer agreement and request the necessary documents for review. These documents provide crucial information about the condominium corporation and the specific unit in question.
Status Certificate Review
Our expert lawyers thoroughly analyze the provided status certificate. They scrutinize every detail, from the financial health of the condominium corporation to specific rules and regulations affecting your unit.
Discussion of Findings
Post-review, our lawyers will communicate with you to discuss the identified findings. This step ensures that you are fully aware of the potential implications of purchasing the unit, thereby facilitating an informed decision.
Neglecting to review a status certificate can lead to considerable financial repercussions. Hence, the importance of having a competent lawyer who is experienced in this area cannot be understated. With over a decade of experience in real estate law, our team at MBLAW has successfully reviewed thousands of status certificates and effectively advised our clients based on the findings. Trust us to guide you in making the best decision for you and your family.
Status Certificate Review: Frequently Asked Questions
Typically, the corporation is required to deliver a status certificate within a 10-day window from the day the order is placed. However, some condominium corporations might offer an expedited service at an additional cost.
While a status certificate is technically only valid on the day it was issued, title insurance coverage often extends up to 30 days from the certificate’s date. If the certificate is 60 days old, a lawyer would need to confirm with the condominium management that no significant changes have occurred since its issuance. If the certificate is more than 90 days old, a new one would likely need to be ordered.
The agreement of purchase and sale should specify who is responsible for ordering and paying for the status certificate. If the offer is conditional, the responsibility is typically defined within those terms. In some cases, the seller may already have a status certificate ready for review by potential buyers. If the time between the offer and closing date exceeds 90 days, a new status certificate might need to be ordered, unless otherwise stated in the agreement.
A special assessment is an additional amount charged to the unit owner over and above their regular monthly maintenance fees. It is usually levied when the condominium corporation faces financial constraints and doesn’t have sufficient funds in its reserves for necessary repairs. While this is not a common occurrence, it could have significant financial implications for both the seller and the buyer. The cost of a special assessment is typically divided proportionately among all unit owners.
Absolutely. The information in the status certificate can greatly influence the sale or purchase of a condominium unit. For example, if the status certificate reveals that the condominium corporation’s reserve fund is insufficient or if a significant special assessment is pending, it might discourage a potential buyer from proceeding with the purchase. On the other hand, a healthy reserve fund and well-managed condominium corporation could make the unit more attractive to prospective buyers.
Yes, the information in the status certificate can change after its issue, especially if there’s a substantial gap between the issue date and the closing date. This is why it’s important to remember that a status certificate is technically only valid on the date of its issuance. Changes could include fluctuations in the reserve fund, changes in condominium rules or regulations, or new special assessments levied by the condominium corporation.