When you purchase a resale condominium, it is extremely important to request the estoppel certificate. It is a signed statement from the condominium corporation and is conclusive proof of matters certified in it. The condominium corporation has 10 days after receiving a request from an owner, purchaser, mortgagee or person authorized in writing (by an owner, purchaser or mortgagee) to provide the estoppel certificate. The certificate provides the following information:
- the current condominium contributions (also known as condo fees) for the unit;
- the payment schedule for contributions (usually monthly or yearly);
- whether any contributions are unpaid; and
- any interest owing on unpaid contributions.
Unpaid condominium contributions carry with the unit, not the owner. If you purchase a unit with outstanding contributions, you will be responsible for paying them. If there are unpaid contributions, you may want to talk to your lawyer or real estate agent about asking the seller to deduct the outstanding fees and interest from the purchase price.
Centre for Public Legal Education Alberta – Before You Buy: Understanding Condo Finances
Last updated: February 2018