TENNY MANOOK
COMMON QUESTIONS
DO I NEED A REAL ESTATE LAWYER?
The short answer is yes. A real estate lawyer is required to review title of the property, they manage the closing process in terms of payment and any issues that may arise, and they review and report back to you on the status certificate for a condo purchase.
My advice has always been to ask friends and family who they recommend, and to strive to find someone who has proven themselves capable during a difficult transaction. Often that's when the best real estate lawyers reveal themselves.
IS A HOME INSPECTION REQUIRED?
WHY IS A STATUS CERTIFICATE IMPORTANT?
A Status Certificate is a group of documents your lawyer should review when purchasing a condominium unit. Overall, it helps provide a snapshot of the condo corporation's financial shape, its rules and by-laws, as well detail what is legally owned and owed. Your lawyer will be on the lookout for any issues, by-laws or rules of concern, as well ensuring what is legally owned and owner name(s) match your Agreement of Purchase and Sale.
In Ontario, the condo corporation has 10 business days to provide the Status Certificate, and upon receipt your lawyer most commonly has 2 business days to review it, though this can vary based on the terms in your agreement.
Home inspections are not required, but always highly recommended. They can pinpoint issues related to major systems in the home such as electrical, plumbing, heating/cooling, and structural, but also those related to the exterior such as the roof, windows, and basement. The home inspection report will detail the condition of the above mentioned, any and all concerns observed, the approximate remaining lifespan of all systems and the home, as well as any recommendations for systems and the home.
It is important to note that home inspections are limited in scope: they can only report what is visible. Some companies utilise equipment that can measure beyond the visual, but often charge a premium for such services.
WHY DO I NEED TO QUALIFY FOR A MORTGAGE?
Qualifying for a mortgage gives you two crucial pieces of information: the purchase amount for which you will be approved and the amount with which you are comfortable.
These numbers can differ from one another and can surprise you. Knowing both is crucial to starting your househunt on the right foot.
WHAT DOES A STATUS CERTIFICATE CONTAIN?
The status certificate details: the financial shape of the corporation, its declaration, by-laws and rules, how many units there are and how many are tenanted, what increases in maintenance fees it anticipates, if there are any special assessments (payments per unit beyond monthly maintenance for a building wide repair project), and any pending lawsuits.
It also has a section pertaining specifically to the unit in question, outlining the legal dwelling unit that is owned, along with any parking or locker unit(s). It will also note if maintenance payments are in arrears.
As you can see, there are a lot of details that arise when purchasing a house or condo. The key is working with someone who can answer all your questions and provide explanations to help you feel you're in the know every step of way.