Condo Owners Association COA

Displaying items by tag: buyers

Status Certificates and why do you need one?

 

A status certificate is the report as per Section 76 of the Ontario Condo Act which outlines the current state of a Condominium Corporation.  It contains an assortment of extremely important details on your condominium.  A key item noted on the status certificate is any large increases which may come into effect, special assessments and any arrears or liens on any particular suite or the Corporation.

A Status Certificate includes:

  1. Condominium Declaration
  2. By-laws, Rules and Regulations 
  3. Copy of the Insurance certificate of the Corporation
  4. Copy of the Corporation Insurance Certificate
  5. Most Recent Financial Statements outlining operating budgets, reserve fund and any surplus etc.
  6. Cover letter with Board of Directors signature confirming contents of Status Certificate
  7. Notification of Special Assessments as ratified by the Board of Directors 
  8. Notification of any large increases and/or any items of importance

 

Buyers Status Condition on Agreement of Purchase and Sale

The status certificate discloses information to a potential Buyer about the Condominium.  A Buyer purchasing a condominium should include a Status Condition clause where the Sellers will provide the Buyer with a Status Certificate within 10 days.  The condition will include an additional 3 banking days for the Buyers Lawyer to review the Status to their satisfaction.  If the Status is acceptable to the Lawyer, the Buyer will be instructed to waive the Condition on Status Review based on their Lawyers recommendation.  They will sign a waiver to release the condition and their Purchase and Sale Agreement is now firm.   In the event that the Buyer's Lawyer is concerned about anything on the Status Certificate and the concern cannot be remedied, the Lawyer will most likely recommend that the Buyer not waive the status condition and release the Agreement of Purchase and Sale.  The Buyer will sign a Mutual Release to terminate the Agreement of Purchase and Sale with the Seller and the Listing Brokerage will return the Buyers deposit without interest or deduction.  The Buyers deposit would have been held in trust for the Buyer pending the completion of the transaction.  In many cases the Status Certificate may only be valid for 30 days as per the Buyers Lawyer's request however traditionally it should be 60 days.  

Status Certificate Requisition

Whether the Seller requisitions the Status through an online portal or can also submit a written request by contacting their Property Management office, the cost is approximately $125.00 - $150.00 depending on each Corporation.   Not all Corporations have their Status Certificate available online.    According to the Condominium Act, a Provincial Legislation, the Condo Corporation has 10 days to satisfy the request.  It can either be a hard copy from the Corporations Property Management office or through an online portal such as Conduit, assortment of pdf files with the above information.   It will also include a cover letter to identify the legal description of the specific condo unit as well as the current maintenance fees attached to that unit along with the costs being covered in the maintenance fee.  

Periodic Information Certificate

In some Corporations, certainly those who have Board of Directors who practice transparency in a stronger fashion do sent out a Periodic Information Certificate (PIC) twice per fiscal year to all Owners.  Generally it is within 60 days of the end of the first quarter and 60 days of the end of the third quarter.  This PIC includes important information regarding the Board of Directors, the corporation finances, insurance, reserve fund, legal proceedings and other matters such as changes to any By-Laws and/or Rules and Regulations.  

Building or Developer preparation of Original Condo Declaration and By-Laws 

The Ministry of Government and Consumers Services oversees the Condominium Act.  In March 2010, Founder CEO of the Condo Owners Association, Linda Pinizzotto challenged the Act when she created the COA.  The first plan of action was to meet with Minister John Garretson, of the McGuinty Government.  It was an enormous challenge and before the Province experienced a change in Government from the McGuinty to the Wynn Government, Premier Dalton McGuinty announced the  CONDO ACT REVIEW  

Human rights Code of each Province 

It is common for the Builder or the developer to draw up a set of rules and regulations along with the Builder's law firm to prepare the declaration and by-law.   Section 58 (1) of the Act must promote safety, security and welfare of Owners and their property as well as the Assets of the Corporation.  

Human Rights Code of each province.

 
Published in Buying a Condo

 

 

 

 

 

Buying a Condominium in the Resale Condo Market

Buyers must understand condominiums before buying!  "Condos are a complicated purchase, first you must learn about the financial implications of the Condo" says Linda Pinizzotto, Sutton Group Realtor and Founder | President of COA the Condo Owners Association.   It's time to invest in Real Estate but make sure you understand condominiums and work with a specialist.  

Condo Show Podcast

Condo Radio.com

Contact us for more details 

 

Buying  a Condo 

Condominium Buyers must have knowledge relating to Condominiums, Condo Documents, By-Laws and Rules and Regulations of a Condominium.    

Considerations when Purchasing

  1. Review the location of the Building and the direction the unit is facing
  2. Note any vacant land and/or parking lots - old buildings next door for possible tear down
  3. Review Layout and Design, both living space, balcony or terrace
  4. Check kitchens and Bathroom for water leakage under sink and around taps
  5. Check toilet;  note if energy savings and/or dual flush
  6. Check all appliances
  7. Check caulking around windows (ie moisture)
  8. Confirm the Maintenance Fees
  9. Review the proximity of the elevators and garbage chute
  10. Check if the building has energy features and tri-sector garbage chutes
  11. Check if the building has sub metering for heat and/or hydro
  12. Check light fixtures ie capped in ceiling and/or wall switches
  13. Ask about the amounts of keys, fobs and mail box keys provided with purchase
  14. While you walk through building keep an eye for cleanliness and condition
  15. Note condition of elevators and license date (in every elevator)
  16. Keep an eye for Management Notices to see whats going on in building   

Agreement of Purchase and Sale

  1. Have the Sales Representative explain the Agreement of Purchase and Sale
  2. Ask If this is an Assignment - buying before the Building is registered
  3. Ask Agent to explain Schedule A for Terms of the Agreement of Purchase and Sale
  4. Determine closing date and chattels /extras included in price
  5. Ask Sales Representative to include a clause that all appliances will be in working order
  6. Check parking space and/or locker spot if included in Agreement
  7. The Agreement of Purchase and Sale should be conditional upon your Lawyer reviewing the Status Certificate (see below)  

Condominium Documents

Have your Solicitor Review during 2-3 Day conditional period

  1. Your Offer to Purchase will include a condition relating to obtain a Status Certificate which includes the Buildings Condo Documents ie Declaration, By-Laws , Rules and Regulations, Financials, Building Insurance Policy and letter signed by a Board Member
  2. Note:  According to the Condo Act, Property Management has 10 banking days to provide Status Certificate
  3. Your Offer will also include a clause stating that the Offer to Purchase is conditional upon your Lawyer's review of these Documents, generally 2-3 banking days.  If your lawyer approves you will be waiving the condition of review of Status
    Questions to ask your Lawyer  
    1. Ask if there is any restrictions in the Documents relating to  ie. Pets, Barbecues
    2. Ask about Short Term Rentals and if they are time sensitive or unlimited
    3. Ask if the Corporation includes any affordable Housing units
    4. Ask if there are any leasing equipment  ie. boilers, communication room etc.
    5. Ask if the full Parking Garage is Owned by the Corporation
    6. Your lawyer should be able to check all information noted above  

Sale Finalized - Lawyer Reviews Documents

  1. Once the sale is finalized and the conditions are removed
  2. Book your Elevator with Property Management - may require a deposit
  3. Register as new Owner with Property Management  

After you Move In

  1. Bring your new Fob transmitters to Property Management to program for you
  2. Remember Go to your Annual General Meetings
  3. Stay involved with your Condominium Building - Know your Directors  
Published in Buying a Condo