What should my lawyer look for in a status certificate?
Reserve fund adequacy against the reserve fund study, any pending or contemplated special assessment, litigation, the insurance deductible chargeable back to owners, arrears on the unit, and rules affecting pets, rentals and parking.
Six things, in order of what they can cost you.
Reserve fund versus the reserve fund study. The study says what the building will need and when. The balance says what is saved. A large gap means fee increases, a special assessment, or deferred work, and one of those is coming.
Special assessments. Levied, planned, or discussed at the board. This is the line that costs owners tens of thousands.
Litigation. A corporation suing its developer over construction defects can be good, since it may recover costs, or ruinous. Either way you need to know.
Insurance deductible. Many corporations charge the deductible back to the unit owner responsible for a loss, and deductibles for water damage have risen sharply. Your own unit policy needs to cover that exposure.
Arrears on the unit. Unpaid common expenses are a lien on the unit and become your problem.
Rules. Pets, short-term rentals, long-term rentals, parking, flooring, balconies. These bind you and they are enforceable.
Next questions
What is a status certificate and what is in it?
The condo corporation's disclosure package about the unit and the corporation: fees, arrears, budget, reserve fund, insurance, litigation, rules and any planned special assessment. The corporation must produce it within ten days and the fee is capped by regulation.
Ontario
What is a special assessment and can I be hit with one?
A one-time charge levied on every owner when the reserve fund cannot cover necessary work. It is not optional, it is a lien on your unit if unpaid, and nothing in this app can size one for you: the amount depends on the work and on your unit's share of it, and the status certificate is where any figure for your building exists.
Ontario
Why are condo fees so different between buildings?
Because of what they include and how well the reserve is funded. A fee covering heat, water and hydro is not comparable to one covering none, and a low fee in an aging building usually means a special assessment later.
Ontario