What is a status certificate in Ontario and when do I need one?
A status certificate is a document that every Ontario condominium corporation must prepare and provide upon request under the Condominium Act, 1998. It contains a snapshot of the financial and legal health of both the specific unit and the corporation as a whole at the date of the certificate.
You almost always need one when buying a resale condominium. Your agreement of purchase and sale should include a condition giving you time to obtain and review the status certificate before your deal becomes firm. The corporation must produce it within 10 days of a written request. Once you (or your lawyer) receive it, your agreement's status certificate condition gives you a set period to review it and, if you are not satisfied, you may rescind the agreement and get your deposit back.
Your negotiated review period is one of the most important buyer protections you can build into an Ontario condo purchase agreement. Using that time to have a real estate lawyer review the certificate thoroughly can prevent costly surprises after closing.
Key takeaways
- Every Ontario condo corporation must provide a status certificate within 10 days of request.
- Include a status certificate condition in your offer so you can exit if the review reveals problems.
- Your agreement's condition sets how long you have after receiving it to review and, if needed, rescind.
- A lawyer should review the certificate — it contains dense financial and legal information.