Reading a Status Certificate: The Seven Things That Actually Matter

Ontario condo corporations must provide a status certificate within ten days of a request, for a regulated fee of $100 including HST. Your offer should be conditional on your lawyer reviewing it, and that review is not a formality.

1. The reserve fund balance versus the study

A reserve fund study projects what the building needs over 30 years. Compare the current balance to what the study says it should be at this point. A fund materially behind plan means fee increases, a special assessment, or deferred maintenance — often all three.

2. Special assessments, current and contemplated

The certificate must disclose assessments that have been levied. It must also disclose whether the board is aware of any circumstances that may result in an increase in common expenses. Read that paragraph twice.

3. Litigation

Corporations disclose known claims. Construction deficiency litigation against a developer is common in newer buildings and is not automatically a red flag, but ongoing litigation with an owner or a contractor can be.

4. Arrears on the unit

If the seller owes common expenses, the corporation has a lien. Your lawyer handles this at closing, but it tells you something about the file.

5. What the fee actually includes

Two buildings with identical fees are not comparable if one includes heat, water, and hydro and the other includes none of them. Normalize the fee before you compare buildings.

6. The declaration and rules

Pet weight limits, short-term rental restrictions, whether you can rent the unit at all, and whether the locker and parking space are owned, exclusive-use, or leased. These change the value of what you are buying.

7. Insurance and the deductible

Check the corporation's deductible on water damage. Some buildings carry deductibles high enough that an owner is effectively self-insuring a burst pipe. Your unit policy needs to cover that gap.

If any of these raise a question, the answer is to extend the condition, not to waive it and hope. Sellers in a normal market will grant a short extension for a legitimate review.