What is a status certificate and does the seller pay for it in a condo sale?

A status certificate is a package of documents that Ontario condominium corporations are required to provide under the Condominium Act. It includes the current monthly common-expense fees, any amounts the unit owner owes to the corporation, the reserve fund balance, the current budget, and any pending special assessments or litigation.

Buyers (and their lawyers) use the status certificate to evaluate the financial health of the condo and any issues that might affect ownership. Buyers typically have ten days to review the status certificate after receiving it, and if not satisfied they can cancel the deal within that review period.

Condominium corporations in Ontario charge a fee to produce the status certificate — the maximum amount is set by regulation. Whether the buyer or seller pays is negotiable, but it is common for sellers to order the certificate upfront so they can provide it to potential buyers quickly and reduce delays. Failing to obtain one or delivering it late can give buyers grounds to rescind. Speak with your lawyer about timing the certificate to match your expected listing date.