What's in a condo status certificate and why does it matter?

The package includes the corporation's current budget and reserve fund balance, whether any special assessment is planned or already charged, insurance details, the declaration, bylaws and rules, minutes from recent board and owner meetings, and whether the specific unit owes any money to the corporation, like unpaid fees. It also states whether the corporation is involved in a lawsuit, which can matter a lot for what you're buying into.

Ontario caps the fee at $100 including tax, and the corporation must deliver the certificate within 10 days of a written request. That deadline exists so buyers aren't stuck waiting past their conditional offer period. If you're on a tight timeline, ask your real estate agent or lawyer to request it the same day your offer is accepted.

The reserve fund is money set aside for major repairs and replacements, like the roof, elevators, or parking garage. A reserve fund study is a periodic professional assessment of whether that fund has enough money for upcoming work. A healthy reserve fund with a recent, well-funded study is a good sign. A reserve fund that's low relative to upcoming repairs is a warning sign your lawyer should flag, since it often means a special assessment is coming.

A special assessment is an extra one-time charge to owners, on top of monthly fees, usually because reserves can't cover a needed repair or an unexpected expense came up. If one is already approved or clearly likely based on the certificate, you and the seller need to sort out, in the agreement, who pays it. Don't assume it's automatically the seller's responsibility just because the work was approved before you bought.

Without that condition, you're bound to the deal before anyone with legal training has looked at the corporation's finances, litigation, or rules. A status certificate review isn't legally required to close, but skipping it means you're buying into a shared building blind. Your lawyer checks the numbers, the litigation history, and whether the unit itself owes anything, then reports back within your condition period so you can still walk away if something's wrong.