Inspecting a Downtown Toronto Condo's Status Certificate By: Ronen Fishman
Though Toronto’s condo market may be uncertain at the moment, there are still many interested buyers who may not be aware of the importance of inspecting a condo’s status certificate. Why is it so important to pay careful attention to a condo’s status certificate? Well, it can be used as a great negotiating tool! Most buyers don’t look at the status certificate until after closing but it is wise, when buying a downtown Toronto condo, to look over the valuable information this piece of paper contains with your lawyer.
As an interested buyer, you most likely have physically seen the unit you’re purchasing and have a good idea of its value based on market research. Though everything may seem dandy, there is important information contained within the status certificate that could impact your negotiations and the value of the condo you’re purchasing.
A status certificate for any given condo corporation will include the following; the Board of Directors, condo rules and by-laws, common expenses and anticipated increases, financial statements that include details on the reserve fund, assessments to increase the size of the reserve fund, details on any legal actions, a current list of agreements, number of units leased, certificate of insurance, any proposed changes to common elements, and the owner’s compliance with the corporation’s agreements. Pay particular attention to the reserve fund as this will give you a good insight into your condo’s value.
The reserve fund can impact the selling price of your condo greatly. The fund is meant for repairs and replacement of common elements such as the roof or electrical system. A condo with an insufficient reserve fund could result in unexpected fees or special assessments. If this is the case, owners may see the value of their property decrease. If the condo you’re purchasing has a small reserve fund, you may want to look for a condo with a healthier reserve fund or re-negotiate your offer to something that will reflect future expenses.
One other thing to keep in mind when buying condos is unlimited liability. Condo corps don’t extend limited liability so any deficiencies on the corporation’s part also affect the owners of suites in the building. That’s why it’s so important to carefully inspect a condo’s status certificate before closing.
If you’re interested in purchasing a condo in downtown Toronto, check out some of these great buildings:
Are you looking for the perfect condo? Contact Upperside Real Estate. Our team of diverse agents will help you find your dream home. We can be reached at (905) 597 - 9333 or at firstname.lastname@example.org