Whether you are representing a buyer or a seller, if a condo is involved you want to read this blog. For the party who buys the condo, their lawyer will request a condo certificate prior to closing. The condo certificate contains information about the management and financial position of both the condo being purchased and the condo’s management corporation.
Why will the buyer want the condo certificate? Because of the information it contains. Drilling down, the condo certificate is very valuable for 3 primary reasons.
- The condo corporation – The condo certificate will contain information about the condo corporation’s management structure, expenses and budget. It will disclose if the condo corporation has legal issues and much, much more… This information in totality will support whether or not the condo corporation is in good financial shape. This information may impact the buyer’s decision to purchase.
- The condo itself – The condo certificate will reveal the financial standing of the unit in question, including the cost of monthly maintenance fees, inclusions and whether or not the owner is up to date on their payments.
- Bi-laws – The condo may have restrictions, such as no pets or how common areas can be used, and this will all be outlined in the condo certificate.
The condo certificate, historically, has been obtained through a lengthy process, beginning with a written request to the condo corporation, paying a fee and then waiting up to 10 days for the certificate to be received. Since obtaining a condo certificate is time consuming and costly, some real estate sales professionals leave it to the lawyer, crossing their fingers. However, this is no longer the only way to obtain a condo certificate.
Technology has changed, and condo certificates can now often be obtained online, payment rendered online, and in some cases delivery of the document can be done electronically – taking courier fees, cheques and time out of the equation.
This makes obtaining a condo certificate for your client easier and more efficient. Obtaining a condo certificate makes all parties to the transaction view you as offering top-notch services because you are taking measures to ensure that everything is checked out at the beginning of the transaction and not on the eve of close.
Condos that make it to closing where condo arrears or some issue that could delay or even prevent a closing appear end up costing everyone. Avoid the hassle today and check out the GeoWarehouse Store to learn how you can start ordering online condo certificates today!