Why do I need a status certificate condition when buying a resale condo in Ontario?

A status certificate is a document issued by a condominium corporation that discloses the financial and legal health of the condo building. It includes the current reserve fund balance, any pending special assessments, existing litigation against the corporation, the monthly maintenance fee, the corporation's budget, and the declaration and rules.

When buying a resale condo, including a condition on the review of the status certificate is essential. It gives your lawyer a set period — typically 3–7 business days — to review the certificate and advise you on what it reveals. If significant problems exist — an underfunded reserve, a large special assessment coming, or litigation that could affect the building's finances — you can choose to walk away with your deposit returned.

Under Ontario's Condominium Act, a buyer is entitled to request a status certificate from the corporation; the corporation has up to 10 days to provide it and can charge a fee. The condition clock should start only when the certificate is received, not when it is requested. Make sure your offer is drafted to reflect this.