YOUR THURSDAY TIDBIT – THE ESTOPPEL CERTIFICATE
According to the standard Alberta Condominium Property Purchase Contract (the “Contract”), a seller is responsible to pay, among other things, condominium contributions up to and including the Completion Day and any special condominium assessment contributions passed by resolution on or before the Completion Day. It is critical to ensure that a seller is up-to-date on the condominium contributions for their unit as any unpaid contributions carry with the unit – not with the owner. That means, if a purchaser buys a condominium unit with outstanding contributions then they will be responsible for paying them off. To ensure purchasers are buying a condominium unit that is up-to-date on the contributions, a purchaser should always receive an Estoppel Certificate from the seller.
The Estoppel Certificate is an official statement from the condominium corporation that contains the following information:
- The current condominium contributions for the unit (i.e. the monthly condo fees);
- The payment schedule for the contributions (usually the first day of each and every month);
- Whether the unit is up-to-date on the contributions; and
- Any interest or penalties associated with unpaid contributions.
It is a requirement under the Contract, that the seller’s lawyer provide an Estoppel Certificate, effective as of the Completion Day, to the buyer’s lawyer verifying the payment of all applicable condominium contributions, which is the seller’s responsibility to pay. To ensure a clear Estoppel Certificate is provided to the buyer’s lawyer, the Contract allows the seller’s lawyer to utilize the Purchase Price to pay off and discharge all of the seller’s financial obligations related to the Property.
If you have any questions concerning the Estoppel Certificate, please don’t hesitate to contact Khemka Law or counsel of your choosing. If there’s a topic you’d like us to cover, please let us know! We are always here to assist you. Thank you for taking time to read this Thursday Tidbit.
Pranav Khemka, Barrister & Solicitor
T: (403) 457-9577 | F: (403) 457-9578
LEGAL: The Thursday Tidbit provides general information and does not constitute legal advice. Circumstances may vary and no lawyer-client relationship is established from the use and reliance of this information. You are strongly advised to seek any legal advice by directly contacting Khemka Law or counsel of your choosing. Khemka Law does not warrant or guarantee the quality, accuracy or completeness of any information found within this Thursday Tidbit.