Do prepaid condo maintenance fees get adjusted at closing in Ontario?

Yes, prepaid condominium maintenance fees are adjusted on the statement of adjustments when buying a resale condo in Ontario. Condo maintenance fees (also called common expense fees) are typically paid monthly, often in advance for the upcoming month. If the seller has already paid the full month's fees and the closing falls mid-month, the buyer owes the seller a credit for the unused portion.

Conversely, if fees were paid in arrears or there is an outstanding amount owed by the seller to the corporation, that shortfall may appear as a debit to the seller and credit to the buyer. Your lawyer reviews the status certificate and verifies the payment status of condo fees as part of the closing process.

The status certificate will confirm whether the unit is in good standing and whether there are any outstanding charges against it. If there is a lien registered by the condo corporation against the unit for unpaid common expenses, that lien must typically be paid off before or at closing. Your lawyer will ensure all amounts are properly accounted for and that you are not inheriting any unpaid condo fee obligations from the seller.