Condo Status Certificate Review in Ontario

What it is and how to get it

Section 76 of the Condominium Act, 1998 requires a condominium corporation to provide a status certificate, with the prescribed attachments, within ten days of a written request and payment of the fee. The fee is capped by regulation at $100 including HST.

Because of that ten-day window, a status certificate condition should run at least ten business days. Five is not enough, and buyers regularly find themselves choosing between waiving the condition and losing the property.

What we look for

• Reserve fund balance and the reserve fund study. Is the fund adequate for the work the study says is coming, and is the funding plan being followed? A large building with an underfunded reserve and a roof due in three years is a special assessment waiting to be announced.
• Planned increases. The certificate must disclose any increase in common expenses the board has approved.
• Special assessments. Any levied, pending, or contemplated; these can run to tens of thousands of dollars per unit.
• Arrears on the unit. Unpaid common expenses become a lien with priority, and a buyer who closes without dealing with them inherits the problem.
• Litigation. Any proceeding to which the corporation is a party. Construction-deficiency litigation against a developer is common in newer buildings and can be positive or negative depending on its posture.
• Insurance. What the corporation’s policy covers, what the deductible is, and what the unit owner must insure; deductibles above $25,000 are common and are frequently a surprise.
• The declaration, by-laws, and rules. Pets, short-term rentals, smoking, flooring, balcony use, visitor parking, and what alterations require board consent.
• Leasing restrictions. Critical if the unit is being bought as an investment, a rule requiring minimum one-year tenancies defeats a short-term rental plan entirely.
• Parking and locker: whether they are owned units, exclusive-use common elements, or merely leased, and whether they actually transfer with the unit.
• Unit boundaries and exclusive-use areas, so you know what you own and what you merely have the right to use.
• Whether the board has consented to alterations made by the current owner, and whether an indemnity agreement is registered.

What a problem in the certificate is worth

Not every red flag should end the deal. An underfunded reserve or a known upcoming project may be a reason to reduce the price rather than walk, and a well-run corporation being candid about a future expense is in some ways a better sign than one that is silent.

What matters is that the decision is made with the information, before the condition expires. We read the certificate, tell you plainly what the risks are and roughly what they could cost, and let you decide whether to proceed, renegotiate, or withdraw.