May

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What is a status certificate?

Filed Under Brampton, Buy, Condos, Homes, Real Estate, Sell 

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Condo apartments and condo townhouses are becoming increasingly popular in Brampton to accommodate the other spectrum of buyers that are not looking for large detached homes. If you’re in the process of buying a condo or am thinking of buying one in the near future, you will encounter something called a status certificate. What exactly is a status certificate and what does it do for you?

Every condominium complex is run by a management group. It’s this group’s responsibility to collect maintenance fees and oversee the maintenance and upkeep of the condominium complex. When you purchase a condo, your sale will likely be conditional upon the status certificate, which is a package of documents prepared by the management office. These documents will outline all the details of the condo complex, it’s rules and regulations, it’s financial status, how much money is in the reserve fund, what maintenance fees cover, the details of your unit, and much more.

Generally, the seller will order this certificate and pay for it on behalf of the buyer. A status certificate typically costs $100. The most important parts of the status certificate are those that pertain to your particular unit, how much money is in the reserve fund, and whether or not the condominium corporation predicts any changes to your monthly maintenance fee. A well run condo complex will have an excess of money in their reserve fund in case of emergency repairs or upgrades. A poorly run condo with little money in their reserve fund may require all residents to pay a special levy if something happens and large repairs are required to the complex. Your lawyer will be able to review the status certificate and tell you if the condominium is well managed.

Normally it takes between 5 - 10 days for a status certificate to be ordered, prepared, and delivered to the real estate agent. It’s important to carefully review the status certificate of any potential condo purchase, as it is a good indication of how well the complex is managed.

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