Thinking about getting into a long-term relationship with a condo? More detailed than an online dating profile, the Status Certificate gives you a snapshot look at the ins-and-outs of the building you are considering buying into. The status certificate will answer everything you want to know about a condo – and then some – so you can commit with confidence.

Typically when we are preparing an offer on a condo we make it conditional on the buyer’s lawyer reviewing the Status Certificate. This actually entails reviewing a number of documents that cover really important things like the condominium corporation’s budget and financial statement (outlining the crucial reserve fund), the statement of insurance for the entire building, if there are any pending law suits and any planned work/special assessments.

Every agent has a story to underline why reviewing the Status is vital. An agent we know was telling us this gem the other day: Everything was going well and the client was all set to sign off and make their offer firm. Then they checked in with their lawyer and learned that the condo corp. was increasing maintenance fees 7% a year for the next 8 years. Why? Because they had decided to spend three-quarters of the reserve fund on landscaping. Yes. Plants. And shrubs, and grass and rocks, too. Of course curb appeal is important, and the landscaping helps maintain the value of their asset, but by spending that much of the reserve fund the cost of replenishing it falls to the owners in the building.

Good catch by the lawyer. Good lesson for buyers: find out when the last reserve study was done and how frequently an update is undertaken. Every two years is a good rule of thumb. A healthy reserve fund that is being reviewed regularly is a good sign since the goal is to plan ahead for repairs and have the funds available to cover them without having to implement “special assessments” from the condo unit owners.

Other great things about the Status: It verifies the exact legal description for the unit, parking and locker so you know you are buying the right one. All the condo rules by-laws associated with the building come with these documents as well. Pet restrictions, BBQ limitations, how the board is elected, when meetings are held, that kind of thing. You have a specific question on how things are run, you can find that answer in these pages.

You get the picture of why the Status Certificate is important, but remember it’s only a snapshot of the condo corporation at that moment in time. Once you decide to buy, stay tuned-in to what’s going on in your building by attending the annual general meetings. Help keep that Status attractive for years to come!