Why do I need a Status Certificate
A status certificate an essential document when you’re buying a condominium. As per Section 76 of the Ontario Condo Act, it provides basic but important information concerning the financial status of a unit and of the condo corporation.
It will generally include
- Whether you own the parking or locker, or whether you just have a right to use them
- The exact amount of the condo fees and whether the present owner is up-to-date with payment
- Who manages the condominium and a copy of the insurance policy
- The condominium’s budget and the amount of money in the reserve fund to cover future repairs
- Whether any “special assessments” are anticipated because there isn’t enough money in the reserve fund
- Whether anyone is suing the condominium and if there’s enough insurance to pay them
The rules of the condominium, including whether or not you can keep a pet, hang laundry on your balcony and when you can use facilities such as the pool.
Although some condominium Sellers will obtain a copy of the status certificate when they list their property, as they quickly become out of date, they are usually not ordered until an offer has been accepted. In that case Buyer would make their offer conditional upon being satisfied with the status certificate.
Condominium ccorporations are required to provide a status certificate within 10 days. Some provide only a paper copy (which can easily be 100 pages) but many now make them available for purchase online. The fee is $100, but there may be a small additional charge for online delivery. In Toronto that cost is usually paid by the Seller.
Once the Buyer has a copy, he usually has 2-3 days to review it specified in the offer). It’s important to use a lawyer who is familiar with the Toronto condo market to advise you. On occasion we’ve had Buyers use out-of-town lawyers and that can cause delays and questions which can jeopardize the deal.
As soon as both you and your lawyer are happy with the content of the status certificate you’ll sign the paperwork with your REALTOR® to lift the condition and your deal will become firm. Congratulations!