What Is Included
The status certificate includes the condo corporation's budget, reserve fund details, any current or pending legal actions, and the declaration, bylaws, and rules of the building. It gives a clear picture of how the building is managed financially.
Reserve Fund Health
A healthy reserve fund means the building has enough saved for major repairs like roofs, elevators, or parking garages. A low reserve fund can signal future special assessments, which are extra fees charged to all owners to cover shortfalls.
Watching for Legal Issues
The status certificate will disclose any lawsuits involving the condo corporation. Ongoing litigation can affect your ability to get financing or insurance, so this section deserves careful attention from your lawyer.
Maintenance Fee Trends
Look at how maintenance fees have changed over recent years. A sudden or repeated increase can indicate rising costs or past underfunding of the reserve fund.
- Reserve fund balance
- History of maintenance fee increases
- Pending legal actions or special assessments
Why Lenders Care Too
Some lenders will review the status certificate as part of their underwriting, particularly for smaller buildings or those with known issues, since a financially unstable condo corporation can affect the property's value.
Frequently asked questions
- Who reviews the status certificate?
- Your real estate lawyer typically reviews the status certificate on your behalf before closing.
- How long does the status certificate review take?
- Buyers often get a set number of days as a condition in their offer, commonly around 10 business days.
- Can I still get a mortgage if the reserve fund is low?
- It depends on the lender, some may have concerns about financing in a building with a poorly funded reserve.