Humber/Ontario Real Estate Course 3 Exam Practice

What should a certificate of status include for a condominium resale transaction?

1. Current budget.

2. Proof of insurance.

3. Amount in the reserve fund.

4. Number of rental units.

5. All of the above.

The correct answer is: All of the above.

In a condominium resale transaction, the certificate of status is a crucial document that provides comprehensive information about the condo and its financial condition. It typically includes several key elements that are vital for potential buyers to make informed decisions. The current budget reflects the planned expenditures and financial health of the condominium corporation, giving insight into its operations. Proof of insurance is essential, as it shows that the property is adequately covered against unforeseen events, which can affect the value and safety of the property. The amount in the reserve fund indicates the financial readiness of the condominium corporation to handle major repairs or projects, which impacts future assessments or fees for owners. Lastly, the number of rental units can provide insight into the community dynamics and potential restrictions on rentals, which are essential considerations for investors or new residents. Including all of these components ensures that prospective buyers have access to a complete picture of the condominium's status, making 'All of the above' the correct choice. This thoroughness helps buyers understand the ongoing financial responsibilities associated with the property they are considering.