property value
The information relating to a condominium’s financial status will be found in the status cer tificate. Most condominium agreements of purchase and sale cont ain a condition which states that the purchase is conditional upon the purchaser’s lawyer receiving a completed status certificate from the condominium corporation and having a specified time period to review the status certificate. If the purchaser is not satisfied with any of the information contained in the status certificate, then the purchaser is entitled to terminate the transaction without any penalty. S e c t i o n 7 6 of t h e C o n d o m i n i u m Act (the Act) requires condominium corporations to provide a status cer tificate with respect to a unit to e a c h p e r s o n w h o re q u e s t s su c h a status certificate, generally, purchasers, mortgagees and real estate agents. The status certificate must be given within 10 days after receiving a request for it and payment of the $100 fee. Section
76 provides a long list of the material information that must be provided in the status certificate. T h e s t a t u s c e r t i f i c a te b i n d s t h e corporation as of the date it is given (or deemed to have been given, if not delivered) as against a purchaser or a mor tgagee of the unit who relies on the certificate. If a corporation does not give the status certificate within the requisite time period, it will be deemed that there is no default in the payment of common expenses for the unit; the board has not declared any increase in the common expenses since the date of the budget; and the board has not levied any special assessments to increase contributions to the reser ve fund. If information is missing from the status certificate, it will be deemed to include a statement that there is no such information. It is essential that the status certificate is properly completed with accurate and up -to - date information
a n d p r o v i d e d w i t h i n t h e r e q u i s i te time period, together with all of the documents required by Section 76 to be attached to the cer tificate. The following sets out what kind of information purchasers and their lawyers will be looking for. Common expenses T he status cer tificate must indicate when the nex t payment of common expenses is due, how much is due, if a unit owner is in default of common expenses and, if so, the amount of the arrears. It may also contain other added costs, such as any assessment against the unit for overcrowding; any insurance deductible amount that an owner is responsible for; costs of repairs to the unit and/or common elements where the owner is responsible and has failed to pay; costs, charges and expenses for non-compliance with an agreement allowing an owner to modify common e l e m e nt s . I n o rd e r n ot to a s su m e
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