You can find out a great deal of information about a condominium by purchasing a "Status Certificate" from it. They cost $100.00, and are worth every penny. You should buy one before you firm up your offer. The simplest way to do this is to have your agent make the offer conditional for 10 days to allow you to obtain the certificate, review it with your lawyer and be satisfied with its contents and attachments.
These certificates contain, among other things these pertinent pieces of information:
You should review these documents with your lawyer PRIOR to finalizing the offer.
1. confirmation of the amount of the reserve fund;
2. whether the unit you are buying is up-to-date for common expense payments;
3. whether there are any large increases in monthly common expenses being considered;
4. whether there are any special assessments being considered;
5. whether the corporation is a party to any legal actions;
6. a copy of the current budget;
7. the most recent audited financial statements; and
8. copies of the condominium's Declaration, By-laws and Rules
(Tip: Read the rules carefully: if you don't think you can abide by them look somewhere else but also keep in mind that all condos have rules.)
Basically it is a Report Card on the Corporation and your investment!
Paul
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