Condominium Status Certificate in Manitoba: What Sellers Must Disclose

If you are buying or selling a condominium unit, you will hear about a status certificate, which is a document that tells a buyer about the condominium corporation's finances and legal position. People often expect one single document that lists fees, arrears, special assessments and lawsuits.

In Manitoba, the information reaches the buyer through a package of statements and records that the seller must deliver. This article explains what is in that package, who provides it, and what to look for before you commit.

This article covers the law of Manitoba.

Who must provide the documents

In a condominium resale, the seller is the one who must give the buyer the required documents. The list of resale disclosure documents is found in section 51(2) of The Condominium Act, and the reserve fund study is governed by section 50.

Because the cooling-off period starts only once the seller has delivered the disclosure documents, you should make sure they arrive complete and current before you rely on them.

What the resale package includes

The seller must give the buyer the following:

• A current seller disclosure statement (Form 2A, 2B or 2C).
• A corporation disclosure statement signed within 90 days (Form 3).
• The declaration with its amendments.
• Budgets and the latest financial statements.
• The by-laws and rules.
• Any reserve fund study or summary.
• Forms 4, 5 and 6B.

Together these documents are where a buyer looks for fee levels, the corporation's financial health, the rules for living in the building and the state of its reserve planning. The exact details each form must contain are worth reviewing with a lawyer.

What to look for when you read them

• Whether the corporation disclosure statement was signed recently enough to meet the 90-day requirement.
• Monthly fees and what the budgets say about future increases.
• Whether the financial statements show unpaid amounts, borrowing or large upcoming expenses.
• Whether a reserve fund study or summary is included, and what it says about future repairs.
• Any statement of claims or disputes involving the corporation or the unit.
• By-laws and rules that affect pets, rentals, renovations or parking.

If something looks unclear, ask for an explanation in writing before the cooling-off period ends.

Cooling-off period and material changes

The cooling-off period is seven days. It starts on the later of the day you sign and the day the seller delivers the disclosure documents, and you can cancel for any reason. If day seven falls on a weekend or holiday, it runs to the next business day, except for Remembrance Day.

After a valid cancellation, the seller must refund the amounts you paid plus interest within 10 days after receiving your cancellation notice.

If there is a material change, you can cancel by midnight of the seventh day after the seller's written notice, but not after you take possession. A seller who disputes a cancellation made after the cooling-off period may apply to court within 10 days of receiving the notice.

New units and next steps

Exception: if the declaration and plan are not yet registered, the seller must give a different package. It includes Form 6A, Forms 4 and 5, a declarant's disclosure statement (Form 1), a reserve fund study or summary, the proposed declaration, the first by-law and rules, any proposed management agreement, plan parts for the unit, and financial projections if the sale falls in the first year all owners contribute to common expenses.

• Note the date you signed and the date the documents arrived, since both affect the cooling-off period.
• Read every document, not only the summary forms.
• Have a lawyer review the disclosure documents before the cooling-off period ends.

Frequently asked questions