What is a Status Certificate?
A condominium status certificate is a detailed report about the status of a Mississauga condominium. It outlines valuable information including but not limited to; the amount of money in the condo reserve fund, whether or not any major work needs to be done on the condominium, any claims or lawsuits made against the condominium, any special assessments made against the unit owners, the condo budget, insurance information, number of units leased and more.
Also included within the documentation is the exact cost of monthly condo maintenance fees as well as any outstanding payments.
The status certificate not only includes the above financial statements but also the condo declaration and condo bylaws. The declaration outlines all of the rules and regulations of the condo. For example, the pet provision which states whether or not pets are allowed in the building.
Why is a Status Certificate important?
The financial statements within the status certificate are a good indication of a corporation’s financial stability. For example, if a high rise condo in Mississauga only had $50,000 in its reserve fund, any cost accrued over $50,000 would have to be covered by the residents by either raising the maintenance fees or in the form of a special assessment.
The status certificate is also important to obtain before you buy a resale condo in Mississauga because it outlines the rules which are applied to that condominium. This can include bylaws portraying to condo repairs, visitors and use of common areas.
Where to get a Status Certificate and how much does it cost?
Typically speaking, the sellers are responsible for obtaining a valid status certificate for any real estate transaction. However, this clause must be included in the purchase and sale agreement. The status certificate can be obtained from any condo corporation in Mississauga and it can cost anywhere from $12 to $100 CND. Once ordered, it can take up to 10 days for the documentation to arrive. I can be also ordered from here: https://www.statuscertificate.com/
How do I know if my Status certificate is valid?
First and foremost, you should always have a lawyer review your status certificate. In addition, make sure your status certificate is recent (less than a month old). Always seek qualified legal advice for anything you do not understand.
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