Condo Buyers Should Always Review Status Certificates
Today's Globe and Mail features a $75,000 court judgment against a Toronto condo corporation in the case of Gonzales v. York Condominium Corporation No. 242. The case highlights a serious issue: the importance of reviewing condo status certificates carefully before making a purchase. Justice Robert Centa called the condo corporation's actions a “shocking abuse of trust and power,” pointing out the risks of receiving inaccurate or incomplete documents.
This case serves as a reminder that status certificates should always be reviewed by your lawyer to avoid unexpected and costly issues later.
What is a Status Certificate and Why is it Important?
A status certificate is an important document that tells you about a condo building’s finances and any risks or upcoming costs. In this case, buyers Leigh and Harvin Gonzales were hit with unexpected charges after receiving a second status certificate that didn’t reflect the true financial picture. They were surprised with a $21,905 special fee for balcony repairs and another $19,600 charge for removing an illegal solarium. The second status certificate was found to be altered and not trustworthy, which led to the lawsuit.
Key Takeaways for Condo Buyers
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Always Have Your Lawyer Review the Status Certificate
A lawyer will understand the details and can help spot any problems, especially in key sections like paragraph 12, which talks about possible increases in costs for the building. They can help you avoid surprises. -
Understand the Fine Print
Status certificates often include technical details about the condo’s condition. If you see something like a report on unsafe balconies, ask your lawyer about how it might affect your costs in the future. -
Ask Questions
If anything in the certificate doesn’t make sense, don’t hesitate to ask for clarification. It’s better to get the right answers now than face unexpected bills later.
Our Opinion: Full Disclosure is Key
This case shows how important it is for property managers to provide accurate and clear information. Buyers need to know what they’re really getting into, and status certificates should be a true reflection of the condo’s situation. Property managers and boards must be transparent, even if it means disclosing bad news.
If you’re thinking of buying a condo, reach out to us. We’ll guide you through the process and make sure your lawyer reviews all the necessary documents so you can make an informed decision.
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