A status certificate is a document issued by a condominium corporation, in the prescribed form, about a specific unit and the corporation. Section 76 of the Condominium Act, 1998 requires the corporation to give one to anyone who requests it and pays the fee.
What it covers
Among other things, s.76(1) requires it to state the common expenses for the unit and any default, any increase in common expenses the board has declared since the budget and the reason, any assessments levied against the unit since the budget to increase the reserve fund, and information about the reserve fund. It comes with supporting documents such as the declaration, by-laws, rules, budget and the most recent reserve fund study information.
The 10-day rule
The corporation must give the certificate within 10 days after receiving the request and payment of the fee (s.76(3)). If it fails to, s.76(5) deems it to have issued a certificate stating that there is no default in common expenses, no declared increase, and no assessment levied for the reserve fund since the budget. If a certificate omits required material information, it is deemed to say there is no such information (s.76(4)).
The fee is limited by regulation; your lawyer or the property manager can confirm the current amount.
Using it in an offer
Resale condo and loft offers in Toronto are commonly made conditional on the buyer's lawyer reviewing the status certificate. Things a reviewer typically looks for:
- Arrears on the unit, and any special assessment levied or under discussion
- Reserve fund adequacy and the funding plan (see reserve funds)
- Legal actions involving the corporation
- Rules on pets, leasing and short-term rentals
- Which parking and locker units go with the unit (see parking and locker units)
- Insurance, and the owner's responsibility for damage originating in the unit