The status certificate: read this before you buy
The one document that tells you the financial and legal health of the building you're buying into.
What it is
A status certificate is a package of documents issued by the condominium corporation under Ontario's Condominium Act. It is a snapshot of the building and of the specific unit you are buying.
What is in it
- The unit's monthly common expenses, and whether the current owner is behind on them
- The corporation's budget and most recent financial statements
- The reserve fund balance and a summary of the latest reserve fund study
- Any special assessments, and any increase in fees since the budget was set
- Lawsuits involving the corporation
- The building's insurance
- The declaration, by-laws and rules, which cover things like pets, rentals and renovations
How you get one
Anyone can request a status certificate from the condo corporation or its property manager. The corporation can charge up to $100, tax included, and must provide it within 10 days of the request. Sellers often order it before listing so it is ready to hand over.
Why a lawyer should read it
Most offers on resale condos are conditional on the buyer's lawyer reviewing the status certificate. A lawyer who works with condos knows what a thin reserve fund, a pending lawsuit or a restrictive rule means for you, and will tell you plainly whether to go ahead.
Red flags
- A reserve fund that is low compared with the repairs the study says are coming
- A special assessment that has been approved or is being discussed
- Litigation that is not covered by insurance
- Rules that conflict with how you plan to use the unit
Ready to find your condo?
Talk to a condo specialist today. Honest answers, no pressure.