What happens during the 10-day status certificate review period in Ontario?
Once you receive a status certificate in connection with an agreement of purchase and sale, the Condominium Act, 1998 gives you 10 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 those 10 days and receive your deposit back without penalty.
The 10-day period runs from when you personally receive the certificate. If you do not rescind within 10 days, 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.
Key takeaways
- The 10-day period is your only window to exit based on the certificate review.
- You can rescind the agreement and recover your deposit if you're not satisfied.
- The clock starts when you personally receive the certificate.
- Always have a real estate lawyer review the certificate before the 10 days expire.