A buyer's checklist for reviewing a status certificate — what to look for, what to ask, and what should make you pause.
Who this is for: Anyone buying a condominium in Ontario — a condo apartment, townhouse, or any unit governed by a condo corporation. What you'll get: A plain-language explanation of the status certificate and a structured checklist for reviewing the corporation's finances, rules, insurance, and legal health — plus red flags and questions to ask before you waive your condition.
⚖️ This is a general guide, not legal advice. It can't account for your specific situation. Use it to get oriented, then confirm the details with a licensed Ontario lawyer.
Why a condo is different
When you buy a condo, you're not just buying a unit — you're buying a share of a condominium corporation that owns and runs the building's common elements (lobby, roof, elevators, amenities) and collects monthly fees to maintain them. The corporation's financial and legal health becomes your problem the day you close. A beautiful unit in a poorly run corporation can mean surprise fee hikes, big one-time bills, and restrictive rules you didn't expect.
That's why due diligence on a condo means reviewing the status certificate.
What is a status certificate?
A status certificate is a package of documents the condo corporation must provide on request that gives a snapshot of the corporation's finances, rules, insurance, and any legal or money problems. In Ontario, the corporation is required to deliver it within a set timeframe after a request and a prescribed fee — verify the current timeline and fee, as they're set by regulation and can change.
It typically includes the declaration, by-laws, and rules; the budget and financial statements; reserve fund information; insurance details; and disclosure of special assessments and litigation.
💡 Make your offer conditional on a satisfactory status certificate review. This gives your lawyer time to read it within the condition period and lets you walk away if something serious turns up. Don't skip this for a resale condo.
How to use this kit
Work through the checklist below as you (and your lawyer) go through the certificate. Tick what checks out, flag what doesn't, and bring anything unclear to your lawyer. Your lawyer reviews the status certificate within your condition period and explains what it means for you — this kit helps you read alongside them and ask sharper questions.
The review checklist
1. Reserve fund balance and study
The reserve fund is the corporation's savings account for major repairs and replacements (roof, elevators, windows, parking garage). A reserve fund study projects what those big-ticket items will cost over the coming decades and whether the fund is on track.
- What's the current reserve fund balance?
- When was the last reserve fund study done, and what did it conclude?
Why it matters: an underfunded reserve is one of the biggest risks in a condo purchase — it often means future fee increases or special assessments.
- Does the study say the fund is adequately funded for upcoming projects?
2. Special assessments — current or pending
A special assessment is a one-time charge to unit owners on top of regular fees, usually to cover a shortfall or an unexpected major repair. It can run into thousands of dollars.
- Are there any special assessments currently in effect?
- Is the board contemplating or planning any special assessment?
Why it matters: a pending assessment can land on you after closing. The certificate should disclose known or anticipated assessments — read this section closely.
3. Monthly fees and what they cover
- What are the current monthly common-element fees for this unit?
- What do the fees include? (Heat, water, building insurance, amenities, parking, etc. — it varies widely.)
- Have fees increased recently, and by how much over the past few years?
Why it matters: low fees can be a warning sign (the corporation may not be collecting enough), and a history of steep jumps signals financial pressure.
4. Rules, declaration, and by-laws
The declaration, by-laws, and rules govern what you can and can't do in the building. People are often surprised by these after they buy.
- Pets — allowed? Size, breed, or number limits?
- Rentals / leasing — can you rent the unit out? Minimum lease terms? Short-term rental bans?
- Smoking — restrictions on the unit or balcony?
- BBQs / balconies — any limits on use, storage, or grilling?
- Renovations — what needs board approval?
- Parking and lockers — owned, exclusive-use, or rented? Are they included with your unit?
Why it matters: if you have a dog, plan to rent the unit, or want to grill on the balcony, the rules can be a deal-breaker. Check before you're committed.
5. Insurance certificate
- Is there a current certificate of the corporation's insurance in the package?
- What does the corporation's policy cover, and where does your responsibility begin?
Why it matters: the corporation insures the building and common elements, but you typically need your own unit-owner policy for your belongings, improvements, and liability — and to cover the corporation's insurance deductible in some situations.
6. Litigation against the corporation
- Is the corporation involved in any lawsuits or legal proceedings?
Why it matters: litigation can drain the corporation's funds and lead to assessments or higher fees. The certificate should disclose known legal actions.
7. The budget and financial statements
- Does the budget balance, or is the corporation running a deficit?
- Do the financial statements look healthy, or are there warning signs your lawyer flags?
Why it matters: a corporation that consistently spends more than it collects is heading toward fee increases or assessments.
8. Other items to confirm
- Are the seller's common-element fees paid up to date (no arrears that could attach to the unit)?
- Are there any rules about the unit that conflict with how you plan to use it?
- Any recent or upcoming major projects (lobby renovation, garage repair, window replacement)?
Red flags — slow down and ask questions
⚠️ Treat any of these as a reason to dig deeper before you waive your condition:
- A low or depleted reserve fund, or a reserve study warning of a shortfall.
- A special assessment that's active, recently passed, or being discussed.
- Suspiciously low monthly fees for the building's age and amenities.
- A history of large fee increases year over year.
- Active litigation against the corporation.
- A deficit budget or financial statements your lawyer flags as concerning.
- Rules that clash with your plans (no pets when you have a dog; no rentals when you intend to lease it).
- The corporation is slow or unwilling to produce the certificate.
Questions to ask the property manager
The certificate is a snapshot; the manager can add color. Consider asking:
- Are any major repairs or capital projects planned in the next few years?
- Has the board discussed a special assessment recently?
- How often have fees increased, and by roughly how much?
- Are there any ongoing disputes, insurance claims, or building issues (water, mould, parking)?
- What's included in the monthly fee for this specific unit?
- Are there waitlists or rules for parking, lockers, or amenities?
Mini-FAQ
Who pays for the status certificate? Typically the buyer requests it (often through the lawyer or agent) and pays the corporation's prescribed fee. The exact fee is set by regulation — verify the current amount.
Can I rely on the status certificate? It's an official statement the corporation is bound by, which is why it matters so much. But it's a snapshot in time, and it can't predict every future cost. Your lawyer explains its limits.
What if the review turns up a problem? If your offer was conditional on a satisfactory review, you can usually negotiate, ask for more information, or walk away within the condition period. That's exactly why the condition exists. Talk to your lawyer right away.
Do I still need my own insurance if the corporation has a policy? Yes. The corporation insures the building and common elements; you generally need a unit-owner policy for your contents, upgrades, liability, and certain deductibles. Confirm the gaps with your insurer.
What's next
If the status certificate checks out and your lawyer is satisfied, you waive your condition and move toward closing. If it doesn't, you have options because you made your offer conditional — use them. The whole point of this kit is to make that decision with your eyes open, not after you've signed.
How Treadstone Law can help
We review status certificates for condo buyers across Ontario as part of our flat-fee real estate service — reading the reserve fund, special assessments, rules, insurance, and litigation disclosures, and explaining in plain language what they mean for you before your condition deadline.
- Start your file online: treadstonelaw.ca/start-file
- See our flat fees: treadstonelaw.ca/pricing
- More on our real estate services: treadstonelaw.ca/real-estate
- Call us: 1-844-900-1070.
We serve all of Ontario virtually, from our Mississauga office.
This is not legal advice
This guide is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.