When you are buying a home in Nova Scotia there are a lot of moving parts to the process. When you are buying a condominium, often you can count on adding a few more. One of the requirements specific to purchasing a condo unit is getting your hands on the estoppel certificate.
What is an Estoppel Certificate?
The certificate is provided to the seller by the condo corporation, who then forwards it on to the buyer's lawyer. The certificate should provide an up to date summary of the financial details the condo corporation has regarding that particular unit. It has information about:
the financial standing of the reserve fund of the corporation,
whether or not there are any lawsuits pending, and
whether or not there are outstanding fees associated with your unit.
Why do you need an Estoppel Certificate?
You want this certificate if you are purchasing a condo unit to ensure that there are no outstanding fees owing to the condo corporation associated with the unit you want to purchase. You do not want to end up with a nasty surprise after closing, and find out that you are on the hook for fees that should have been up to date when you bought the property.
You may also be wary of buying into a condo corporation that has lawsuits pending, or does not maintain a reserve fund that can reasonably be expected to cover foreseeable major repairs. There is usually a cost associated with the preparation of these certificate, charged by the condo corporation. This cost is part of the closing costs paid by the seller. This is one of the things that your lawyer will often take care of on your behalf as part of the buying or selling process.
If you have any questions about this subject, you can call us at (902) 826-3070 or email us at firstname.lastname@example.org to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $100+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.
By: Briana C. O’Grady J.D – Associate Lawyer
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