The status certificate is a report as per Section 76 of Ontario Condo act. It provides essential information on the current state of the condo corporation and status of the unit. This is a report prepared by your property manager (Registered Condominium Manager), with the goal of providing owners a snapshot of the financials, well-being of the building and the organization behind it. If you are thinking of investing in a resale condo it is critical you carefully review this document with a lawyer before confirming your purchase. Here is an example of a status certificate.
Why do I Need a Status Certificate?
A status certificate will give potential buyers details of legal and financial circumstances for the unit and the condo building. In many cases, a buyer will obtain a status certificate, since it will disclose any extra or unanticipated liabilities. It is very important to pay close attention to the reserve fund. Ensure that there is sufficient money for maintenance and any major repairs to the condo. Finally, a status certificate can show you if the current board is fiscally responsible and the books are balanced. If the reserve fund is depleted or the board is unreliable you could be in for increased maintenance fees or even a large repair bill.
How do I Get a Status Certificate?
If you are looking to buy a resale condo you can simply provide a written request and pay a fee of 100 dollars. This website provides a simple 3 step process that allows you to order a certificate online. It should arrive within ten days of ordering it. If you are an owner selling a condo remember that the buyer will also need a few days to review the document.
What to look for?
Every status certificate is specific to the condominium it is attached to at the specific time it is requested. Every status certificate will have variances depending on the corporation. However, there are a few critical pieces of information that need to be on every status certificate. For a more detailed look at the requirement of a status certificate click here.
Mandatory information included in a Status certificate:
- Names and address of directors and officer of the corporation
- Information regarding common area expenses for the unit
- special assessments that have been levied by the corporation
- Management contract
- minutes of the last general meeting
- copies of the condo declaration, by-laws and rules
- current budget
- current reserve fund study including any plans to increase the fund