What is a condo status certificate and what should my lawyer look for?

What the Act requires it to contain

Section 76(1) of the Condominium Act, 1998 lists the contents: the unit's common expenses and any default, increases since the budget, special assessments levied or anticipated, the current budget and most recent financial statements, the reserve fund balance and a summary of the latest study, the corporation's insurance, the declaration, by-laws and rules, any litigation or judgments, the management and other agreements, and more, in the form set by O. Reg. 48/01.

Anyone who pays the fee may request it. The regulation caps the fee at $100 including taxes, and the seller usually obtains it because the offer requires it.

The ten-day rule and the deemed statements

Under section 76(3) the corporation must give the certificate within ten days after receiving the request and the fee. If it omits material information it must contain, section 76(4) deems it to say there is none. If the corporation fails to deliver at all, section 76(5) deems it to say there are no arrears, no increases since the budget and no special assessments for the unit.

Section 76(6) makes the certificate binding on the corporation as of its date, against a purchaser or mortgagee who relies on it. That is why it is worth reading closely: what it says, the corporation must stand behind. It speaks only as of its date, so an old certificate should be refreshed.

What we look for: reserve fund, special assessments, litigation

The reserve fund pays for major repairs. We check the balance, the date of the last study, whether contributions are scheduled to rise sharply and whether a special assessment is recommended. We read the budget against the financial statements for deficits, the insurance certificate for the deductible, and the standard unit by-law for what falls on the owner.

Litigation, especially construction-defect claims in a newer building, tells you where money may go. The rules tell you how you can live: pets, leasing, short-term rentals, renovations. Parking and locker should be confirmed as units, exclusive-use common elements or leased. Our review checklist lists every item.

How the condition works in the offer

The seller requests the certificate and pays the fee; your condition gives your lawyer a set number of business days after receiving the complete certificate to review it, and lets you end the agreement if it is not satisfactory in your sole discretion. Because the corporation has ten days to deliver, the condition deadline should run from receipt, not from acceptance. For a unit bought from the declarant before registration there is no status certificate; the disclosure statement under section 72 and the ten-day rescission right do that job.

Adjustments and after closing

On closing, common expenses are adjusted to the day; the seller's past reserve fund contributions stay with the corporation and are not refunded. Give the corporation your details as the new owner so that information certificates and meeting notices reach you. Insure the unit's improvements, your contents and the corporation's deductible. Disputes with the corporation over records, rules and charges go to the Condominium Authority Tribunal.