When buying a condo, reviewing the “status certificate” is a vital part of the process. A condominium is called a corporation for a reason. It has a board of directors and must follow strict financial guidelines. The status certificate is basically a financial statement, outlining the financial status of the corporation, how much they have in their reserve fund in case of emergencies etc. It also contains information about the condo bylaws that must be followed and outlines what unit owners are and aren’t responsible for maintaining. IF the corporation has a very low reserve fund AND their underground parking garage is basically caving in, don’t buy the unit! The money has to come from somewhere and there’s nothing like a special assessment from the condo corporation a few months after you move in announcing all maintenance fees are going up by $200 a month to cover the costs.

It’s common for buyers to request a copy of the status certificate within a 10 business day conditional period and the buyers usually have two days to take this to their lawyer and have them review it. If you have a good competent lawyer he should be able to advise you whether to still purchase the unit or walk away.