You may have chosen to purchase a condominium apartment for any number of reasons. Condos are usually located in places that allow residents easy access to amenities, they are often more affordable than stand alone homes in large cities, and they often come with several amenities of their own (including a pool and workout facilities). They are also co-operative living arrangements, which means outside of your own suite, you share the building with a large number of other residents.
Most individuals who live in condos find that the communal living does not intrude on their day to day lives too much (once a month or so) but it is important to keep in mind that you are not just a member of a community, so is your residence. Condos are subject to management by a board of directors, who make budgets and oversee the legal side of the complex and various residences within it.
In any case where financial and legal matters are concerned, this means a lot of paperwork. It's important for you to keep track of the various records and statements that your condominium complex's board of directors will send out on a regular basis. One of these is the condo status certificate.
What you will find in a Condo Status Certificate
The definition of a condo status certificate is all in the name; it's a document that states information about the status of the condominium building. The information that the certificate contains is not so evident, but we will outline it for you.
Basically the certificate is a way for residents to ensure that the budget for the condo (and remember, the budget is what your community fees are going to pay for) is in line and that future needs will also be taken care of. To that end, the certificate will contain information on any legal actions that might be coming up against the condo building, additions to common elements not approved by the board (this is a charge that is not stated in the monthly maintenance fee), insurance, and any payments you may have that are overdue. The certificate will also contain the status of the building's reserve fund, which is kept to ensure that any major repairs can be covered.
The condo status certificate is an important tool in ensuring that the Board of Directors is spending your monthly fees in good faith, and that there is a record of any fees that may not have always been in the agreement. It's also nice to know that should anything major happen within the building, the reserve fund is there to take care of it rather than having the price come down on everyone all at once.
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