In Ontario, a condominium’s status certificate includes financial information and reports, but there’s more to consider when reviewing it as a prospective buyer.
Here are some important factors to think about:
- Adequate reserve fund: Is there enough money set aside for major repairs and replacements?
- Lawsuits: Is the condominium corporation involved in any legal disputes that could result in costs and damages?
- Monthly expenses: Are there special assessments or indications of increased common expenses?
You can also get a better understanding about lifestyle restrictions:
- Can you use it as an investment property and rent it out?
- Do you or your tenant need parking or a storage locker?
- Do you or your tenant have pets?
- Are there any other restrictions that could limit your interest (BBQs, smoking, age restrictions, etc)?
Repair and maintenance obligations are crucial too. While the corporation is generally responsible for repairs, the condominium’s declaration can alter these obligations. Owners might have to repair their units or maintain specific elements. Understanding the physical and financial health of a community is important to help you assess upcoming costs.
Each Eli Report will benchmark the budget against other buildings of the same type and age. This makes it easy for you to get a sense of how your community spends its – your – money:
The financial health of the corporation also matters to mortgage lenders; some require lawyers to review status certificates for any issues. Discovering problems after waiving the condition can lead to lenders backing out, which might put you in a tricky spot!
If you would like to get a free AI-powered review of your condo, create a profile and upload the status certificate at https://app.elireport.com/signup