The condo status certificate: what it is and what to look for
Key takeaways
- The status certificate is the condo corporation's official snapshot of its finances, legal issues and rules.
- In Ontario, the corporation must provide it within 10 days of a request and payment of the fee.
- Make your offer conditional on your lawyer reviewing it, usually within a few business days of receipt.
- The red flags to look for are low reserves, planned special assessments, lawsuits, and fee increases.
If you remember one thing from this site, make it this: never firm up a resale condo purchase in Ontario without a lawyer reviewing the status certificate. It's the closest thing you'll get to an inspection of the building's finances and governance, and it's the main way to avoid inheriting someone else's problems.
What is a status certificate?
Under Ontario's Condominium Act, 1998, anyone can request a status certificate for a specific unit from the condo corporation. It's a formal statement, with key documents attached, describing the corporation's and the unit's status as of a certain date. The corporation is bound by what it says. For example, if the certificate states the unit's fees are paid up, the corporation generally can't later chase you for arrears it failed to disclose.
How to get one
- Who requests it: usually the seller's agent provides it, or the buyer's agent or lawyer requests it from the property manager.
- Timing: the corporation has 10 days from receiving the request and fee to provide it.
- Cost: the fee is capped by regulation. Check the Condominium Authority of Ontario (CAO) website for the current maximum.
- Format: often delivered electronically, and it can run to hundreds of pages with attachments.
In competitive situations, sellers sometimes order the status certificate before listing, so buyers can have it reviewed before making an offer. If one is available, ask your lawyer to review it before you bid.
What's in it
A status certificate typically includes or attaches:
- The unit's monthly common expenses and whether they're paid up
- Whether the board knows of anything that may lead to an increase in common expenses
- Any special assessments levied or planned
- The reserve fund balance, the most recent reserve fund study, and the funding plan
- Any legal actions involving the corporation
- The current budget and the latest audited financial statements
- The declaration, by-laws and rules
- Insurance policies held by the corporation
- Information on leased units and any agreements affecting the unit (for example, parking or locker assignments)
The red flags
Your lawyer will review the whole package, but these are the issues buyers most often regret missing:
1. A thin reserve fund
Compare the current balance with what the reserve fund study says the building should have, and with the major repairs coming up in the next few years. If a $1 million garage repair is due in three years and the fund is well short, someone will have to make up the difference, and that someone may be you. See our reserve fund guide.
2. Special assessments
A special assessment is a one-time charge to owners. If one has already been levied, clarify in your offer who pays it, seller or buyer. If one is being considered, ask for details.
3. Planned fee increases
A disclosed increase isn't a deal-breaker on its own, but you need to budget for it.
4. Lawsuits
Litigation against or by the corporation can mean costs for owners. It can relate to construction defects, an injury claim, or a dispute with a contractor. Your lawyer can tell you whether it's minor or material.
5. Rules that don't fit your plans
Pet restrictions, rental limits, short-term rental bans, renovation approval requirements (especially flooring), and parking rules. More on rules, pets and rentals.
6. Insurance gaps or high deductibles
If the corporation's insurance deductible is high, owners may be charged the deductible for damage that originates in their unit. That's why your own unit policy needs adequate "loss assessment" or deductible coverage. See insurance & mortgages.
7. A high share of rented units
Not inherently bad, but some buyers and lenders prefer buildings with mostly owner-occupiers.
Writing the condition into your offer
A typical clause makes the agreement conditional on the buyer's lawyer reviewing and approving the status certificate and attachments within a set number of days after receiving it. Your agent and lawyer will draft the exact wording. Make sure the timeline is realistic. If the certificate hasn't been ordered yet, allow for the corporation's 10-day turnaround plus your lawyer's review.
Beyond the status certificate
- Board minutes: recent minutes can reveal problems that haven't reached the certificate yet, such as leaks, contractor disputes or owner complaints. Owners can request them, so ask the seller.
- The CAO's public registry: the Condominium Authority of Ontario lists basic information on every corporation.
- A home inspection: it can't assess the whole building, but it can check your unit's plumbing, electrical, HVAC, windows and any signs of water.
- Walk the building: look at the garage, the hallways and the exterior. Deferred maintenance is often visible.