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A condo status certificate provides information regarding a specified condo unit and the corporation that owns the condominium. Typically, it provides several important facts about the financial health of the corporation, plus documentation regarding the all regulations and rules and regulations of the condo.
Status certificates can also give a unit owner a complete idea of how well a condo property management company is managing your property. For starters, it provides insights into the finances of the condo, indicating whether or not the budget was correctly followed, and what kinds of repairs and maintenance issues may be required in the near future.
These certificates provide information that is used to determine whether a special assessment is needed. Assessments can be brought about for a number of reasons; for instance, if any potential legal actions come up against the owners of board members, improper budgeting has been brought to your attention or inadequate reserve funding to cover major repairs and replacements of the building or common elements.
Typically, a status certificate is a way for residents to know what their board of directors and property managers are doing with their condos fees in order to make sure that those fees are being spent wisely and in accordance with the regulations and bylaws.
While status certificates may vary slightly in different cities and provinces, they generally contain the same components. The condo property management company must know and understand all requirements and comply with the law when requested.
By law a status certificate must contain the following:
Insurance: Any insurance policies the condo has in place should be explained on the certificate so that tenants know what is covered.
Financial information: The fees associated with a particular unit must be stated on the status certificate, including a statement about the reserve fund, potential special assessments, and future anticipated increases.
There also needs to be information referring to lens and arrears against a particular unit. This is extremely important as special assessments can have a large effect on condo ownership; if this information is not properly disclosed, boards might have to waive their right to collect from a new resident who was not properly informed of upcoming expenditures requiring additional contributions.
Reserve Fund Study: The Reserve Fund Study and the Board’s proposal of the funding reserve for future repairs and replacements.
Lawsuits: If the corporation is involved in any lawsuits, all residents should be aware of that it, plus any important details about the lawsuits.
Budget: The financial information should for the community budget for the most recent time period should be included in the certificate. This shows new owners how the funds are going to be spent, and gives them an opportunity to decide if they agree with the current expenditures or not.
Management information: Tenants must know who provides the condo property management services for their condominium; this is so that they know who to contact when they have problems. They should also receive a copy of the current management contract so that they know what responsibilities are tasked under the property manager and which are the board’s.