What is a status certificate and why do I need one for a condo purchase?

A status certificate is a package of documents provided by a condominium corporation that discloses the financial and legal health of the condo community you are buying into. Under the Condominium Act, the corporation must provide it within ten days of a buyer's request, and the standard purchase agreement includes a condition allowing your lawyer to review it.

The certificate reveals the current common-expense (maintenance) fee for the unit, whether any fee increase has been approved, whether the unit or the seller is in arrears, the status of the reserve fund (the savings account for major repairs), any pending or active litigation against the corporation, and the corporation's budget. It also includes the declaration, by-laws, and rules that will govern your life in the building.

Your real estate lawyer reviews the status certificate on your behalf and flags anything concerning — such as a low reserve fund that signals a special assessment may be coming. You should not waive the status certificate condition without your lawyer's guidance.