Status Certificate Conditions in Ontario: What the Lawyer Reads That You Skipped

Your buyer is not just buying a unit. They are buying a share of a corporation's finances, its lawsuits and its rules. The status certificate is the only look they get before it's theirs.

What it is

A status certificate is a document a condominium corporation must give to anyone who asks for it and pays the fee. It comes from the Condominium Act.

• The corporation has 10 days to provide it. The clock starts when it has the request and the fee.

• The fee is capped at $100, taxes included.

• It comes with attachments: the declaration, by-laws and rules, the budget, the last audited financial statements, the reserve fund notice to owners if one has gone out, the insurance certificates and more.

It speaks as of the date on it. A certificate from four months ago tells you about four months ago.

Why the lawyer cares

What is in the certificate binds the corporation, as of its date, in favour of a buyer who relies on it. If the certificate says no arrears and no special assessment as of its date, the corporation is held to that against a purchaser who relied on it. If it leaves something out that it had to include, the law reads that as "none". An assessment levied the week after is not covered.

That is why the lawyer reads it, and why "the seller says the building is fine" does not bind the corporation.

What the lawyer actually reads

• Common expenses. The amount, whether the unit is in arrears, and whether an increase has been declared or the corporation knows of a reason one may come.

• The reserve fund. The balance, the latest study and the funding plan.

• Special assessments. Levied since the budget. Plus anything the corporation says may push common expenses up.

• Lawsuits. Any the corporation is a party to.

• Insurance. Whether it's in place. Then the deductible, from the insurance certificate and the by-laws, that an owner could be on the hook for.

• The rules. Pets, leasing, short-term rentals, renovations. The thing your buyer plans to do on day one.

• The unit itself. Any agreement with the corporation about changes a past owner made to the common elements. It binds the next owner.

Where agents get the condition wrong

• The timeline is shorter than the law's. The corporation has 10 days from request and payment. If it misses, you get a deemed certificate, not the documents. A condition that expires three days after acceptance only works if a current certificate is already in hand.

• Nobody says who orders it or who pays. Write it down.

• The clock starts at the wrong place. A condition that runs from acceptance and a condition that runs from receipt of the certificate are different deals.

• An old certificate gets reused. Check the date.

• The agent reads it and says it looks fine. That is legal advice. You are not licensed to give it. If the condition names the lawyer, your opinion does not satisfy it.

The right way to run it

• Ask the listing agent, before the offer, whether a current certificate exists.

• Make the condition the lawyer's review, in the lawyer's discretion, with a timeline the corporation can actually meet.

• Get it to the lawyer the hour it arrives.

• Waive or fulfil in writing, on time, on the lawyer's word. Not on yours.

Quick answers

How long does a condo corporation have to provide a status certificate in Ontario?

Ten days after the corporation receives the request and the fee.

How much does a status certificate cost in Ontario?

The fee is capped at $100, including taxes.

Who pays for the status certificate?

Whoever the agreement says. Anyone can order it. Usually the seller or the buyer's lawyer does. Write it into the offer.

Can a buyer walk away because of the status certificate?

Only if the agreement has a status certificate condition, and only the way that condition is written. Wording and deadlines decide it. That call is the buyer's lawyer's.

Ricky Rathore, ABR, SRS, FRI

Founding Partner and Lawyer

Broker of Record and Owner - REMAX Metropolis Realty, Brokerage

A note from the lawyer: this is general information, not legal advice, and reading it doesn't make me your lawyer. Rules change and every situation differs - confirm current requirements with RECO and get advice on your own facts before you act.