Legal Documents – Adviceon Library

The importance of a Status Certificate when buying a condo

Condominium living has become an option for homeowners who want to reduce the many responsibilities of a single-family residence. Most condominium corporations assume these tasks and are a popular choice for young and middle-aged purchasers who are too busy or prefer to limit their day-to-day home duties such as garbage and snow removal, home maintenance and repairs. Condominiums are also attractive to retirees who want to own without any strenuous activities that consume time or who want freedom and security to travel without worrying about pre-retirement duties.

A purchaser needs to obtain an up-to-date status certificate for the unit and have it reviewed by a real estate lawyer. Real estate agents generally make a condo purchase and sale agreement conditional upon a satisfactory review of the Status Certificate. Under the Condominium Act, a condominium corporation has ten days within which to produce a status certificate for anyone who requests one (upon payment of the prescribed fee, which is currently $100). The Act also establishes what information a status certificate must contain.

What is a status certificate?
A status certificate provides a snapshot of everything that may concern prospective purchasers, including its overall financial situation and budget relative to the amount of money in its reserve fund (a savings account maintained for significant repairs and replacements of the common elements such as a new elevator or chiller); the rules by which unit owners are expected to abide; and whether the condominium corporation knows any circumstances that may increase to the standard monthly expenses.

It is important to determine if a condominium corporation is involved or expected to be involved in litigation, and an up-to-date status certificate may reveal that the unit is subject to a “special assessment,” which is a sum of money the condominium corporation believes must be collected from the unit owners to cover an unforeseen expense. This knowledge of a special assessment may affect what a purchaser is willing to pay for a unit.

Your mortgage provider may also want to let you know that your lawyer has reviewed the status certificate as a requirement of the sale.

What is a Power of Attorney (POA)?

If you were to have a stroke, heart attack, or severe operation—a disability to which you could not take care of your affairs, who would take over? What if this was the last day you could make a mindful decision on your behalf?

You transfer directorial powers over your affairs to a Power of Attorney

In such a situation, a Power of Attorney (POA) allows people you trust to manage the prescribed affairs of your life.

Without a POA, your family though ready to pay your bills, and help manage your bank account and your investments, for example, may need special court approval to act for you. They could face a bureaucratic nightmare to acquire authority to pay your bills (from your provincial public trustee).

• Clarity can be defined. A POA leaves no room for misunderstanding the range of authority over your assets. You may need to set restrictive clauses in a POA that addresses your unique concerns.

• You will give up the powers of your signature The POA relinquishes the control of your signature and all the authority associated with it. Unless it states otherwise, the attorney may use a POA immediately upon signing.

• It must be witnessed. Improper witnessing annuls legal completion and sets the POA up for contention. Thus make sure the document is witnessed correctly.

• Be careful of restrictions you may not want to be included. Some broad-form POAs include optional clauses often left included, whereas they may not be applicable. These may have regulations on the attorney you may not want to impose.

• You may want to restrict beneficiary changes. If you want the attorney to have power over changes of beneficiaries to life insurance or investment assets, make that clear. If not, clearly restrict the right to change beneficiaries.

A warning which may or may not apply to you

Unfortunately, once authorised with your directive powers, an attorney could feel it is their privilege to become an “empowered benefactor” of your (you, the donor’s) estate once they lose capacity. So, having a lawyer articulate your specific wishes in your Power of Attorney documentation is a good idea.

To empower and entrust another with your authority, may be the last time you can make a responsible decision on your behalf, so make it carefully.

Where significant wealth is involved, consider a POA explicitly designed to give powers to assist in governing your financial affairs.

What insurance protects travelers and visitors?

These insurance plans can offer emergency medical protection for visitors, immigrants, international students and residents who are not covered by government health insurance. Visiting guests can be covered by valid medical health insurance, which begins upon arrival here insofar as it is bought ahead of travel.

Emergency medical expenses While travelling outside your country or locality, your government health insurance may partially cover some costs. Daily or annual coverage is great if you travel to warmer climates in the winter or travel year-round.

What about travel coverage? International travel covers an insured individual with emergency insurance which pays for expenses related to an emergency medical condition (covered by the plan). These expenses may be a hospital stay, prescription drugs, ambulance transportation, etc. Please refer to the policy for more details.

Coverage can include these expenses:

Bedside companion travel and sustenance allowance
Ambulance transportation
Diagnostic (X-ray, lab tests)
Hospital (semi-private room)
Flight and travel accident coverage
Prescription drugs
Physician or surgeon
Return transportation to the location of travel departure if emergency medical attention is needed
Emergency dental treatment by a licensed dentist and associated cost of prescription drugs while the insured is travelling.
Accidental injury, dismemberment, or death by accident where the accident occurred during travel
Loss/damage of baggage and personal effects
Trip cancellation and interruption

Understand the details. It is better to fill in a form and get a copy of the questions and answers within a contract pertaining to any age-related or medical underwriting processes, if not in person, via a digital meeting and signature. File these documents in case of the need to claim against travel insurance. Avoid policy cancellation due to misinforming the insurer concerning medical questions, which must reveal all medical history and medications used, plus retain a hard copy as your proof.

Note: Refer to the policy, which may vary. Individual plans may be purchased outside of an employer’s group plan.

The Buy-Sell Agreement: A financial safeguards for shareholders

The Buy-Sell agreement is one of the most important legal documents a business can have to protect shareholders if a business owner/partner dies.

They must be planned ahead Whether you own a partnership or corporation, we can help you set up a buy-sell agreement while you are alive and capable of doing so. We will help you value your company and set up the proper Buy-Sell Agreement to meet Canada Revenue Agency’s (CRA’s) standards.

Funding the Agreement We can determine if the company has the cash flow or a large amount of money available to support the buy-out of the deceased or disabled owner. If not, life insurance can be used to fund a buy-sell agreement as it can pay a large amount of tax-free capital at the right time of the death of a business owner/partner.

Making it legally binding We can meet with your lawyer and the buyers’ lawyers. After it is drafted, all parties will review it to their satisfaction and sign it to make it legal. It is suggested that life insurance be purchased first to ensure one is insurable. Even where there is a medical problem, in most cases, an insurer is willing to design a policy to suit the risk based on the respective health of the individual.

What powers do you assign to an executor?

Consider what is involved before naming or agreeing to act as an executor.

• An executor carries out the instructions in your will. Co-executors can share the task.
• Jurisdictional laws define what the executor must do, whether they are a friend, relative, professional, or a trust company—however, the will can specify even more extensive powers.
• The executor may have to deal with some or all of the following at an emotional time: a funeral home, beneficiaries, past or ongoing taxes, insurance and investment companies, government and business pension departments, real estate agents, lawyers, accountants, appraisers, stock brokers, and business partners.
• They may also be empowered to convert the estate to cash or divide assets equally among beneficiaries. They can also make payments to the parent/guardian of a beneficiary in most cases.
• The executor (especially if inexperienced in legal or financial matters) should know how complex the estate is before agreeing to the task. If necessary, appoint a co-executor who is a legal and accounting professional.
• Have a clear and objective idea of what will be involved before asking someone to be your executor and agreeing to act as one.

Discuss the parameters of an executor with your lawyer, before enabling one, or taking on the responsibility if given or offered to you.