A Condominium Status Certificate is a document that provides information about the financial and legal status, as well as the overall health of the Condominium Corporation.
It offers prospective buyers an opportunity to review critical information about the unit and the building.
The status certificate can reveal potential red flags, such as errors in legal descriptions, special assessments, financial deficiencies, and legal issues - all factors that impact a buyer's decision.
A full review of the status certificate by an experienced real estate lawyer is standard practice in Ontario. It helps protect buyers from any hidden surprises or potential issues that may arise after the purchase, ensuring a smooth and well-informed transaction.
A Condo Status Certificate contains information about both the specific unit and condominium as a whole.
This is communicated through various documents such as condominium declarations, by-laws, rules, reserve fund studies, and financial statements. Status certificates also provide details about legal descriptions of the unit and any associated parking space or storage locker, details about the common expenses (maintenance fees), common elements, and any outstanding or upcoming special assessments.
Key contents of status certificates include:
Anyone is eligible to request a status certificate. Corporations can charge up to $100 and must provide it within 10 days.
Requesting and receiving a Condo Status Certificate is a straightforward process, but it's important to be aware of the steps involved:
Submit a Request: The buyer, their real estate agent, or their lawyer should submit a written request for the Condo Status Certificate to the condominium corporation or its management company. Most condos have an online form or portal to facilitate the request.
Pay the Fee: There is a fee associated with obtaining a Condo Status Certificate, up to $100. This fee covers the cost of preparing the document and is paid by the party requesting (usually the buyer).
Allow for Processing Time: By law, the condominium corporation has up to 10 days to provide the Condo Status Certificate after receiving the written request and payment. However, in many cases, you may receive the document sooner.
Delivery Method: The Condo Status Certificate is usually delivered electronically, often as a PDF file, but it can also be provided in hard copy upon request.
Most resale condo transactions are conditional upon a "Status Certificate Review".
A condominium status certificate review is a detailed examination of a condominium's legal and financial documents to assess its overall health and compliance with relevant regulations.
In simpler terms - it's a health check for the condominium corporations to make sure everything is in order and there are no hidden problems.
But reviewing a condo's status isn't a binary thing. It's not "approved" or "not approved" like a financing condition. It's more similar to a home inspection. A lawyer will look closely at all the details, share what they find, and help the buyer decide if moving forward is the right decision.
For the sake of this explanation, we can break it down into five (5) main areas that lawyers look at during a review:
The review of a status certificate is really about piecing together the details to form a complete picture.
A Condo Status Certificate is a snapshot of a condominium's financial and legal health. Most Agreements of Purchase and Sale include a condition allowing the buyer to review a status certificate before finalizing the transaction. It's necessary to have an experienced real estate lawyer perform a review of the status certificate, to verify specific unit information, financial statements, rules & regulations, and legal matters.
If you have questions about Condominium Status Certificates, or or any other real estate legal matter, we're here to help. As real estate law specialists, our mission is to provide the clarity and direction you need to protect your property rights.
Written by
Zachary Soccio-Marandola
Real Estate Lawyer
The purpose of a Status Certificates is to provide potential buyers with key information about a condominium.
A condo corporation can charge up to $100.00 in Ontario for a copy of the status certificate.
After submitting a request and paying the fee, a condo corporation must provide the documents within ten (10) days.
Anyone can request a status certificate. In a real estate transaction, typically the buyer requests and pays for the status certificate.
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