Understanding Alberta Condominium Estoppel Certificates
When people buy a condominium in Alberta, they will often hear the term estoppel certificate. While an estoppel certificate is an important part of the buying and selling process of a condominium, many people do not fully understand what they are or why they are important. There are many rules, laws and procedures with buying, selling and owning condominiums. If you have any questions after reading the following on estoppel certificates, do not hesitate to call the real estate lawyers at Kahane Law Office in Calgary: 403-225-8810
What is An estoppel Certificate?
An Estoppel certificate is a document that is signed by a condominium board or condominium management company. It certifies the accuracy of specific information as it relates to the condominium corporation, the condo common property and the specific individual unit. It is called an estoppel certificate because the condo is the estopped, a fancy word for prevented, from changing their mind about the contents. This is useful for the buyer of a condominium as they can rely on that information.
Who Orders Estoppel Certificates?
Usually the lawyer for a condominium seller will order the estoppel certificate and provide it to the buyer’s lawyer. If a person who owns a condominium is refinancing their condo, then the lawyer acting for the owner will order an estoppel certificate and provide it to the mortgage company. Is they so choose, a buyer can also order an estoppel certificate independent of the seller. Since the date of the estoppel certificate is important, do not order one without speaking with your lawyer first.
What An Estoppel Certificate Demonstrates
The Estoppel certificate will state specific facts. The facts listed, will vary by condominium corporation. In Alberta, the estoppel certificate will usually show:
- If there are condo fee arrears
- The current monthly condo fees that are assessed to the specific unit listed in the estoppel certificate
- When condo fees are due
- If there is any outstanding interest on unpaid fees owing
- If there are any penalties assessed Against an individual owner of a unit
- If there are any upcoming special assessments to be paid
- If there are any special assessments in arrears
- If there is any known litigation with respect to the condominium corporation
- If there are any court judgments against the condo corporation
- If there are any debts, or claimed interests in the common property
- Long term contracts or obligations of the condo corporation.
How Much Does An Estoppel Certificate Cost?
Estoppel certificates vary in price. As a general rule, an estoppel certificate ranges from $200-$350. Some small condominiums do not charge for the estoppel certificate. The cost of the estoppel certificate should be fixed and constant for each specific condominium corporation. In some cases this fee will include the proof of insurance coverage for the building. In other cases, there is an additional fee for the proof of insurance.
Condo Real Estate Lawyers in Calgary
The condominium lawyers at Kahane Law Office in Calgary, Alberta understand estoppel certificates and how they protect you. Protect yourself with lawyers who understand the law. Affordable low flat rates and exceptional service. CONNECT NOW. Please call us at 403-225-8810 or toll-free at 1-877-225-8817 or email us directly here.