What Is an Estoppel Certificate for an Alberta Condo?

If you are buying or selling an Alberta condo, someone will likely mention an estoppel certificate. It sounds technical, but it answers a simple question: what does this unit owe the condo corporation right now?

This article explains what the certificate contains, who can ask for it, how long it takes and where its protection stops.

This article covers the law of Alberta.

What an estoppel certificate discloses

Under the Condominium Property Act, an estoppel certificate states the contribution payable by the owner, how often it is payable, any contributions in arrears, interest owing on unpaid contributions, and any other information the regulations require.

In plain terms, it is the corporation's written statement of the unit's financial standing with the corporation. A buyer wants to know no hidden balance comes with the unit, and a lender wants the same comfort.

Who can request it and how

An owner, a purchaser, a mortgagee or their representative can request an estoppel certificate, and the request must be in writing. In many sales, the lawyer or realtor handling the transaction sends the request on the owner's or buyer's behalf.

• Make the request in writing to the corporation, usually through its manager or board.
• Identify the unit and say who is requesting the certificate.
• Keep a copy and note the date you sent it, because the time limit runs from when the corporation receives it.

How long it takes and what it costs

The corporation must provide the certificate within 10 days after receiving the written request. The maximum fee is $200. If the corporation produces it within 3 days of the request, excluding a holiday, it may charge up to $100 more as a rush fee.

The rush option is a paid choice, not a deadline. Fee caps can also change if the regulation is amended, so confirm the current amount before you pay.

A corporation may charge fees for producing and providing requested information or documents only where the regulations authorize it and only in the prescribed amount. For an estoppel certificate, the regulation sets the maximum fee at $200. If the amount you are charged looks higher than that, you can ask the corporation how it calculated it.

What it protects and what it does not

An estoppel certificate is conclusive proof of the matters certified in it, in favour of the person who requested it and as of its date. If the certificate says nothing is in arrears, the corporation is generally held to that statement as against the person who asked for it.

There are limits worth understanding.

• It covers the matters it certifies, which are mainly contributions, arrears and interest. It is not a review of the building's health.
• It speaks as of its date, so charges that arise later are not covered.
• The protection is in favour of the person who requested it.
• Reserve fund amounts, pending lawsuits, structural deficiencies and loans appear in the information statement, which is a separate document.

For that reason, buyers usually review the information statement and other condo documents as well as the certificate.

Those documents are requested under a different rule. On written request, the corporation must provide prescribed information or documents within 10 days after receiving the request. The prescribed list includes the information statement, the budget, annual financial statements, bylaws, meeting minutes, insurance certificates and policies, and reserve fund plans and reports. The maximum fee for the information statement is $100. For other requested documents, the cap is $10, or $0.25 per page where the document is in hard copy and exceeds 40 pages. A rush surcharge of up to $20 may be charged for other documents produced within 3 days.

What to do next

If the corporation does not respond, or you disagree with what a certificate or document says, the Condominium Dispute Resolution Tribunal hears disputes respecting any matter related to condominiums under the Act, the regulations or bylaws. Whether it can hear your particular issue depends on the facts, so it is worth confirming with a lawyer.

• Confirm who will make the written request, you, your realtor or your lawyer.
• Send it as early as possible, allowing for the 10-day period.
• Check the certificate for the contribution amount, frequency, arrears and interest, and compare them with what you were told.
• Request the information statement and other documents separately if you are buying.
• Ask a lawyer if the figures do not match, or if the certificate arrives late.

Frequently asked questions