Status Certificate

[ArcticS]

I'm in the process of purchasing a power of sale unit at Cityplace, and in negotiating, many of the conditions were removed in the interest of a lower price. At the same time, I was not aware, until after consulting with a lawyer, that a status certificate is normally requested from the seller. However, after confering with my realtor, he suggested that since Cityplace was relatively new, a status certificate would likely not show anything that would be a deal breaker, and that I shouldn't really worry too much about it, since we are already so far into the deal, and we were able to get the unit at a very good price.

What do you guys think? Is my realtor just trying to push the deal through in the interest of his commission, or is he right in saying that I should have some confidence in buying at Cityplace?

 

[pancsi]

I don't see why you shouldn't request to see the status certificate. It is a standard part of the process. Regardless of price in all probability any one else purchasing this same unit will request the certificate. It comes as no cost to the purchaser. Typically it is paid for by the vendor (about $100.00 or so I think) and it is basically standard in any offer to purchase as a condition on the purchase. It is probably fine but you might want to make sure (IE better safe than sorry).

 

[ArcticS]

Thanks. The main issue I'm having is that I just heard about status certificates yesterday, and everything has already been signed except for one final clause regarding financing, which gives us until today. So should I just sign today's final agreement, saying financing has been completed, or risk losing the deal by requesting they provide me with the status certificate first?

My thoughts are that I should just assume that all is ok with Cityplace (or else I'm sure I would have heard a lot about it in this forum), complete the deal, but still request a status certificate for my own information.

 

[carturo15]

The Status Certificate is a standard part of the process. Call your agent (if we can call this guy an agent...... I am telling you, do not deal with that agent anymore, someone who is able to tell you that the status certificate is not necessary......I really do not know how that guy has a license) anyways, call the "agent" and ask him to add an amendment to the agreement and have your lawyer to review the status certificate, ask for 5 days to review upon receiving the certificate. That certificate has to be requested and paid by the seller. Do not sign the waiver until you see the status certificate, if they are not willing to do that, just walk away, find another agent and look for something different, you can still find good deals in the market, that is not the only one.

 

[Observer Walt]

Carturo posted his well-informed reply while I was reading the first part of this thread. I'm not quite sure where your agent is coming from. A Status Certificate is a routine part of a condominium purchase and should have been requested. The offer should be conditional on your lawyer's satisfaction with the contents of the certificate. In addition, if you are getting a mortgage, the lender will also want to see the certificate.

CityPlace is relatively new and there is actually unlikely to be any problem, but if there were, your failure to get a Status Certificate, prior to finalizing the deal, would leave you out in the cold without recourse.

 

[ArcticS]

thanks for all your advice guys. Not to push further on this, but to let you know, we negotiated to almost $20k below asking on a top floor, unobstructed city view unit, within the first 2 weeks of the unit being listed. I'm just afraid that the sellers may at this point have sellers remorse or something, and by giving them a chance out of the deal, they may just take the opportunity to find a higher paying buyer.

 

[s2kdarren]

i think anyone is entitled to view a status certificate if ordered for 100 dollars... i could be mistaken

 

[dpylyp]

A status certificate provides;
Financial snapshot of the buildings operations and expenditures, future financials (commitments for next 5 years) Discloses any "sweetheart' deals that the Developer may have inserted.
report of condo fees paid up to date of [status date] or arrears that need to be cleared; lien on condo for arrears.
Notice of pending Special Assessments. (extra condo fees comming)
Bylaws and Regulations to the new owner. adherence to e.g. No Pets, Commercial Ventures, Commercial vehicles.

It is required and will be ordered by the Lawyer as they need it for the transaction to close.

Status can be ordered by the owner only. "JOE PUBLIC" cannot wander up to the Management office, plunk down his $100 and demand financial disclosure from a private corporation.

IF the Bank is the "owner" under a POS they do not usually provide it as the unit is bought "as is" and the original owner still has the right of redemption. Banks don't pay condo fees Up to date as they are the power of sale action.

If a unit is being sold by an owner, It is standard practice ORDER the certificate at the Owner's expense. When You sell, someday, you will do the same.

The issue in play here is with a new building is it necessary?

Legal; It will be obtained by the lawyer for a transfer to be registered.

If you were intending to use your unit for commercial use in the building, receiving customers at your place of business It may be an issue. I see nothing wrong with the agent's comments as he knows your situation.

 

[confusion]

I think you need a new lawyer/real estate agent if they are telling you not to get a status certificate.

 

[noodlesalad]

the status cert contains information YOU THE PURCHASER really needs to know .. such as, does the condo require repairs that you are not aware of, say for a few million bucks .. and may end up costing each unit owner a few thousand bucks .... or perhaps the condo is being sued, and again, costs will be incurred for the owners on the building.. these may not be likely cases BUT would you know these from walking through a newer condo? ... not worth the risk. and your agent? talk about self-serving. please ask more questions if you are unsure .. this may be the biggest investment of your life .. the status cert will not hold up the deal, and any informed, reasonable seller would not hold this against you..

 

[lowesthangingfruit]

A status certificate provides;
Financial snapshot of the buildings operations and expenditures, future financials (commitments for next 5 years) Discloses any "sweetheart' deals that the Developer may have inserted.

What are "sweetheart" deals ? Not familiar with that term, can you define and give some examples ?? Thanks.

 

[dpylyp]

Condo status

A condo corporation is formed upon registration.
It has rules and bylaws and a proposed operating budget.
The developer/builder is usually the Board of Directors of that board till the owner occupants form their own Board of Directors.

Sweet hearts deals are for commitments for landscaping, property grooming or management that may be above the standard market price that the services would otherwise be available for.

Silly example; Snow removal for Next 5 year contract at Thousands of dollars over market rate to friend of developer.

Silly Example; Condo convenience store on site granted to [friend] new business proprietor at $300.00 per month. for the next 5 years and option to renew for another 5. (all utilities and maintenence in cluded in rent etc)

 

[nekz]

Also, the status certificate will show if the current owner is in arrears of any condo fee payments or special assessments.

Anyone can request it, but it will take the board a few days to prepare it. And yes, it's usually $100 (can be less by law, but no more than $100).

 

[blinknoodle]

In my experience, when I bought my condo (not Cityplace), it was me, the buyer, who had to pony up the $100 for the status documents (it originally stated seller, but it was changed through negotiations). It also took the full 10 days to receive the status documents. The listing kept pestering us about removing the condition re: status document, and I really wanted my agent to tell her there wouldn't be this delay if they supplied us the documents when the place was listed!!

With a newer place, there might not be as much to see in the documents, but you never know. Perhaps you will need to rent additional things (HVAC), or there could be lawsuits already pending. I believe the earlier Cityplace buildings are suing multiple parties for identified deficiencies.

 

[ArcticS]

Banks don't pay condo fees Up to date as they are the power of sale action.

So are you saying that in all POS's for condo units, the back dated condo fees are always paid by the purchaser since the banks don't pay them?