Need to Know About Condo Status Certificate
If you are planning to buy a pre-construction condo, you must equip yourself with a condo status certificate. This certificate is a very essential document that shields buyers from a series of hurdles. In this blog, details will be discussed about the nature and importance of this certificate.
What is a condo status certificate?
A condo status certificate is a vital document that is provided by the condominium corporation to the buyers of the pre-construction condos or other units that are available for reselling. The documents contain essential information pertaining to the financial status of the condo and the condominium corporation. It is part of a disclosure document which also consists of declarations, laws, insurance certificates, budget, management contacts, reserve funds, and other such vital information and proves that protects the buyers from uncertainties. The condominium corporation also provides in this status certificate the agreement of purchase and sale in order to enable the potential buyers or purchasers to review the documents within ten days cooling off period.
What is the objective of a condo status certificate?
A condo certificate ensures the buyers that the fiscal and physical status of the units are in order. The main objective of this certificate is to help the buyers to get a complete disclosure account of the legal and financial scenarios.
- It contains complete and accurate data about the building, units, and the condominium corporation. It helps the prospective buyers anticipate and prepare for any uncertainties that might occur in the future.
- It allows the buyers to know the rules and also ensures buyers that the corporation is accountable for spending the fund and also ensures that the reserved fund will take care of any uncertainties that might arise in the future.
- A condo status certificate is also required by the lending institutions who will in order to get funds from them.
- Without the condo status certificate, the buyer may be in a dilemma whether the unit they are purchasing is insured or not, whether it is subjected to investigation or not, and whether the property units are in sync with the prevailing law or not.
How to get a condo status certificate?
A prospective buyer or investor can get this vital piece of document by requesting it from the condo management board and the condo corporation. Prospective buyers can also get it via online. The document or the condo status certificate is received by the buyer within ten days of the application.
However, the prospective buyer should know in advance that each condo status certificate is slightly varied from the other. It is very important that prospective buyers consult a reputable lawyer to scrutinize the details of the status certificate in order to ensure everything is in sync with the law and rules.
If somehow the contents of the certificate are not in accordance with the law or the buyer finds them unacceptable, they may refuse to accept it. The buyer is generally given 72 hours to analyze the certificate before deciding.
How much does the certificate cost?
The condo status certificate fee is $100 which is charged by the condo corporation and the property manager. In some cases, the prices of the certificate can be increased if the prospective buyer is requesting an expedited status certificate.
Conclusion- Condo status certificates help prospective buyers to know in-depth the condition of the condo units and the varied other important factors that are associated with the property. It determines the feasibility of the intended units to be purchased. This certification is also very important as financial institutions that lend the funds for property purchase require it. It is essential that the prospective buyer get them and analyze them with an experienced lawyer in order to avoid loopholes in the property.