What happens during the status certificate review period in Ontario?

Once you receive a status certificate in connection with an agreement of purchase and sale, your agreement's status certificate condition typically gives you a set number of days to review it. During this period, you and your lawyer should carefully examine the certificate and all the documents it contains or references: the declaration, by-laws, rules, financial statements, reserve fund information, and any disclosed litigation.

If the certificate reveals something you are not satisfied with — an underfunded reserve fund, a large special assessment already approved, significant litigation, financially troubled corporation, or onerous rules you weren't aware of — you may rescind the agreement within that period and receive your deposit back without penalty.

The review period runs from when you personally receive the certificate, for however many days your specific agreement's condition specifies. If you do not rescind before that period ends, the condition expires and your deal becomes binding. Never let this window pass without a lawyer's review, even if the certificate looks fine at first glance — the embedded documents can contain significant restrictions.