This is one of the condition included in the agreement of purchase and sale of a condo.
A status certificate is provided by a condo corporation to a person who requests it and pays a required fee. Mostly, its the buyer who request a status certificate for the concerned condo unit.
A status certificate contains information about the state of the corporation and it includes:
• Reserve Funds and the financial condition of the corporation.
• If the unit that is being purchased is in default of common expense payments
• information on any lawsuits involving the corporation
Buyers should always consider making purchase offers conditional on the satisfactory review of a status certificate. Typically, its the buyer"s lawyer who looks into these and him accordingly.