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Owner exempt from special assessment due to deficient Status Certificate

Condo Adviser
Publication date:
May 24, 2023
Article Summary: 

In a recent case, a judge ruled that a deficient status certificate issued by a condo corporation was oppressive. The case involved a condo corporation experiencing watermain and lift station issues, and they issued a status certificate with inaccurate information regarding a special assessment for repair costs. A purchaser relied on the status certificate, made an unconditional offer, and later discovered the actual cost was $2 million. The court found that the status certificate did not adequately disclose the project and likelihood of the assessment, and the owner was exempt from the special assessment for as long as they owned the unit. The court emphasized that status certificates must provide accurate and sufficient information to ensure informed purchases. Condo corporations must disclose known circumstances that may result in an increase in expenses, and inaccurate status certificates can lead to findings of oppression and prevent claims against unit owners for negligently undisclosed expenditures. The court also clarified that subsequent owners must be advised of their obligation to pay a prorated portion of the special assessment when they purchase the unit.


Status certificate, condo corporation, special assessment, deficiency, oppression, accurate information, informed purchase, financial concerns, disclosure, watermain, lift station, expense increase, purchaser, windfall, subsequent owner.

Source Citation: 
Condo Adviser
Owner exempt from special assessment due to deficient Status Certificate
May 24, 2023
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