Reading a Condo Status Certificate: 7 Things to Check
What to check in an Ontario condo status certificate before you buy
If you are buying a resale condominium in Ontario, the status certificate is the closest thing you will get to a health report on the building. It tells you what the unit costs to own, whether the corporation has money set aside for major repairs, and whether anything unusual is coming. Most buyers make their offer conditional on their lawyer reviewing it, and it is worth understanding what your lawyer is looking at.
Anyone can request a status certificate. Under Ontario's Condominium Act, the condominium corporation has 10 days to provide it, and the fee is capped at $100 including tax. Some corporations offer faster delivery for an extra charge, but the $100, 10-day option must always be available.
1. The common expenses for the unit
The certificate states the monthly common expenses (condo fees) for the unit and whether the current owner is behind on payments. Arrears are normally settled on closing, but your lawyer will confirm the amount so the default does not follow the unit to you.
2. Fee increases already declared
Look for any increase the board has already approved. A certificate can show today's fee alongside a higher fee that starts next month. Budget for the higher number, not the one in the listing.
3. Special assessments
A special assessment is a one-time charge on top of regular fees, usually to cover a major repair the reserve fund cannot pay for. The certificate will show any assessment that has been levied. Ask who pays an assessment that is already declared but falls due after closing; that is a point to settle in your agreement of purchase and sale. Our guide to condo special assessments in Ontario explains how they work.
4. The reserve fund and the latest study
Every Ontario condominium must keep a reserve fund for major repairs and replacements, such as roofs, windows, paving and building systems. The certificate includes the current reserve fund balance, the most recent reserve fund study and any plan to increase contributions. A small balance is not automatically a problem; what matters is whether the corporation is following a funding plan that matches the repairs coming up. If contributions are about to rise sharply, that will show up in your fees. Read more in our guide to reserve fund studies.
5. The budget
The current budget shows where the money goes: insurance, utilities, maintenance, management and the reserve fund contribution. A budget that relies on unusually low maintenance spending, or a large gap between what was budgeted and what was spent last year, is worth a question.
6. Lawsuits and judgments
The certificate discloses legal actions the corporation is involved in and any judgments against it. A dispute with a contractor or a neighbouring property can lead to legal costs, and sometimes to a special assessment. Your lawyer will want to know what each action is about and how far along it is.
7. Insurance, the declaration, by-laws and rules
The package includes the corporation's insurance information and copies of the declaration, by-laws and rules. These documents decide everyday questions: pets, short-term rentals, parking, what you can change inside your unit and which repairs are yours to pay for. Read them before you commit, not after you move in.
Red flags worth a second look
· A large fee increase or a new special assessment
· A reserve fund study that is overdue, or contributions well below what the study recommends
· Ongoing litigation involving the corporation
· A budget deficit from the previous year
· Rules that conflict with how you plan to use the unit
None of these alone means you should walk away. They are questions to ask, and your lawyer and the property manager can usually answer them quickly.
Ordering a status certificate from Enfield
If the corporation you are buying into is managed by The Enfield Group, our status certificates page explains how to order one and what is included. Condominium boards weighing a change of manager can see how we handle records and owner requests on our condo property management page.
This article is general information about Ontario condominiums, not legal advice. Speak with a real estate lawyer about your purchase.
