What Is An Exclusive Listing?
When buying a condo, one of the most important documents you should pay attention to is the status certificate. This document is a financial snapshot in time (good for 30 days only) of the current state of a condo corporation. It provides essential information, including insights about the:
You can get a copy of the status certificate from the building’s property management. Typically, this costs $100.00. Under the Condominium Act, the certificate must be given to you within 10 days from the order date. Most lenders will want to see a copy before releasing funds on close.
As a prospective buyer, it’s part of your due diligence to obtain and review the status certificate. The importance of this document cannot be overstressed enough, especially given that ill-informed buyers will often overlook this step in the condo purchasing process.
Essentially, when purchasing a condo you are not just buying a property. Rather, you are becoming a part owner of the condo corporation. As such, you want to ensure that the corporation is in good financial health. Furthermore, you should ensure this potential acquisition is the right fit for your lifestyle, budget, and long-term investment goals. For these reasons, it’s beneficial to have a lawyer review the status certificate – and then explain it to you in plain English! You want a lawyer who comes from experience with downtown Toronto condominiums. This is one of the most important steps in doing your due diligence prior to purchasing a condo.
So, you’re about to make one of the biggest purchases of your life. Before moving forward with a condo purchase, wouldn’t you want to know…
All important questions, right?
The status certificate will also provide key financial information, such as:
Generally, a status certificate is quite lengthy and far too complex for the average reader to digest without proper training and context. As real estate brokers with experience in the condo buying process, we always strongly recommend having a lawyer review the document prior to considering purchasing any condo. There are a lot of unknowns and unforeseeable outcomes when purchasing a condo. However, you can mitigate many of these risks with the simple act of having a competent and experienced real estate lawyer review the status certificate.
In working with sellers, we oftentimes secure a status certificate in advance before going to market. This way, we have all the information about the property and can confirm that the MLS is factual ahead of time. Remember, the status certificate can take up to 10 days to receive, in order to be current and up-to-date from the property management. As listing agents, we don’t want to have any delays or possible unforeseen surprises come up in the sale of your property. That’s why it’s important to keep these timelines and processes top of mind.
When considering whether to buy or sell a property in a fast moving market, like the Toronto real estate market, your margins for error are slim. There are a lot of considerations to take and it’s important that you have a solid team by your side – one that has your best fiduciary interests every step of the way.
This article is written by Ralph Fox, Broker of Record and Managing Partner here at Fox Marin Associates. Ralph is a Torontonian native who recognized from an early age that the most successful people in life apply long-term thinking to their investments, relationships, and life goals. It’s this philosophy, along with his lifelong entrepreneurial drive and exceptional business instincts that help to establish Ralph as a top agent in the real estate market in downtown Toronto.