Buying a Condo without a Status Certificate

Many condo purchasers choose to make an offer without a Status Certificate review period. This approach is fraught with risk, as the current owner may owe money, illegal or unapproved renovations may become the responsibility of the purchaser, knowledge of a previous fire or flood may impact on a purchase offer, financials may show an inadequate reserve fund or debt situation, and lawsuits involving the condo corporation may result in significant payments. Failure to include a Status Certificate clause and review of the Status Certificate does not absolve a new condo owner of liability for any of these.