What is an Estoppel Certificate?
If you are considering purchasing a condominum property, then the Estoppel Certificate will be a statement which will be required before your possession date by your real estate lawyer.
An Estoppel Certificate contains information in respect of the common expense obligations of the owner and of default in payment, if any, together with statements and information as prescribed by the regulations. Condominium bylaws, rules and regulations are part of the information in such a certificate.
Among real estate lawyers, it has been the practice that, as near to the closing day as possible, the purchaser's lawyer, on behalf of the purchaser, requests and obtains an estoppel certificate and pays the appropriate fee to the corporation. The purchaser is then billed by the real estate lawyer, and this fee is added onto their closing costs.
We have attached an example of an Estoppel Certificate below. The information is a true example of the certificate, however names and addresses have been changed for this example.
Estoppel Certificate- EXAMPLE
THE OWNERS CONDOMINIUM PLAN #1234567, HERBY CERTIFY THAT:
Re: UNIT # 101, Suite 10, 120 Apple Drive, Red Deer, Alberta, T4R 9Y2
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The current Condominium Assessment on Unit # 101 is payable monthly and is paid to HAPPY PROPERTY MANAGEMENT LTD. (TRUST) in the amount of $___120________ per month, beginning ____May 1_______, 2010, in arrears of
$ ___0_______and payments may be made at: (address for payments)
3535 35 St
Red Deer, AB T4R 6L6
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The Corporation has current replacement insurance on the units and common property, in an amount of $ 15,595,000, insured with Happy Insurance, and copy is enclosed.
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The Corporation has not been served with a Statement of Claim or any notice of any action against the Common Property, not does it at present contemplate initiating any legal actions.
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There is no unsatisfied judgment or order for which the Corporation is liable.
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There is no written demand made upon the Corporation for any amount in excess of $5,000.00 that, if not met, may result in an action being brought against the Corporation.
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There are no outstanding notices respecting termination of the Condominium, nor the appointment of an Administrator.
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There has been no lease or disposition of any of the Common Property.
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There are no outstanding notices with respect to General Meetings.
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There is no subsisting recreational agreement respecting the Corporation.
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The Corporation has a balance of $ 130,356.78 in the Capital Replacement Reserve Fund.
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The Board of Directors of the Corporation are as follows:
Timmy Twoshoes
Johnny Joker
Cindy Candy
Kathy Kindness
SIGNED by the duly authorized representative of the said Condominium Corporation and binding upon the Corporation, at the City of Red Deer, in the Province of Alberta, this 20th day of March, 2010.
The Owners Condominium Plan # 1234567
By its authorized Agent
HAPPY PROPERTY MANAGEMENT LTD.
Per: __________________________________
Shaunna Signer
Broker
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