If you are buying a resale condominium in Ontario, the status certificate is one of the most important documents in the transaction. It provides information about the condominium corporation and the specific unit that may not be obvious from a showing or listing.
For a buyer, reviewing it is part of understanding both the unit and the corporation you may soon become part of.
What is an Ontario condo status certificate?
A status certificate is a prescribed condominium document that contains information about the condominium corporation and a particular unit. Anyone can request one. Ontario condominium corporations generally must provide it within 10 days after receiving the request and payment, and the corporation cannot charge more than $100 including applicable taxes.
What information can it contain?
A status-certificate package can include the corporation’s declaration, by-laws and rules, current budget, audited financial statements, information concerning the reserve fund, common expenses and other prescribed information.
For prospective buyers, these documents help answer a broader question: what financial and legal environment are you buying into?
1. Common expenses for the unit
The certificate can provide information concerning the unit’s common expenses and whether amounts are in arrears. Buyers should understand the current monthly obligation and ask how it fits their overall housing budget.
2. The reserve fund
Ontario condominium corporations maintain reserve funds for major repair and replacement of common elements and assets. The status-certificate package can include information concerning the reserve fund and the corporation’s most recent reserve-fund study.
A lawyer reviewing the certificate can help you understand the significance of the information rather than judging the corporation by a single reserve-fund balance.
3. Special assessments
A special assessment can create an additional financial obligation beyond normal monthly condominium fees. Buyers should pay particular attention to disclosed assessments and have their lawyer review the relevant details.
4. Lawsuits and other legal matters
The certificate contains prescribed information concerning the corporation. Legal proceedings or other matters affecting the corporation may be relevant to a buyer’s decision and should be reviewed professionally.
5. Rules that affect how you can use the unit
The declaration, by-laws and rules can address issues such as pets, parking, common elements and other aspects of condominium living. Buyers should review the actual governing documents rather than relying on assumptions about what a building allows.
6. Parking and locker arrangements
If a listing includes parking or a locker, determine the legal nature of those rights. Depending on the condominium, they may be separately owned units, exclusive-use common elements or governed in another way.
Who should review the status certificate?
Condominium status certificates are legal and financial documents. Buyers commonly have the package reviewed by an Ontario real-estate lawyer as part of their due diligence. Your REALTOR® can help coordinate the transaction, but legal interpretation should come from your lawyer.
How recent should it be?
Because condominium finances and legal matters can change, buyers should consider the date of the certificate. Your lawyer and REALTOR® can advise whether the document available for a particular transaction is sufficiently current or whether an updated certificate should be requested.
OntarioHomeIntel condo-buyer checklist
- Obtain the status certificate and complete package.
- Have an Ontario real-estate lawyer review it.
- Confirm current common expenses.
- Review reserve-fund information and the reserve-fund study.
- Look for disclosed special assessments.
- Review relevant legal proceedings and financial issues.
- Read the declaration, by-laws and rules.
- Confirm parking and locker arrangements.
- Understand restrictions that matter to your intended use.
Bottom line
A condo purchase is not only the purchase of an individual unit. You are also acquiring an interest in a condominium corporation with its own finances, rules, obligations and common property. The status certificate helps reveal that larger picture before you commit.
Related OntarioHomeIntel resources
- Ontario home-buying guides
- Condo fees in Ontario
- Ontario closing-cost information
- Home affordability calculator
Free Ontario Condo Buyer Checklist
Keep the status certificate, condo fees, rules, special assessments and closing steps organized with our free printable checklist.
This article provides general Ontario real-estate information and is not legal or financial advice. Buyers should have condominium documents reviewed by an appropriate Ontario legal professional.