A Status Certificate is a document produced by a condominium corporation when ordered by an owner or prospective purchaser of a unit. A Status Certificate is a large and complex document that provides a great deal of information on the unit and on the condominium corporation itself.
Fundamentally, a Status Certificate exists to provide information. In a freehold single detached home situation, a prospective purchaser can inspect the property and perform their own due diligence with respect to title, taxes, costs, etc. In a condominium situation, the purchase is more complex, and the unit owner cannot perform due diligence on the corporation alone. The Status Certificate exists to provide the prospective purchaser with the information that they need in order to perform their due diligence.
What is included in a Status Certificate?
Section 76 of the Condominium Act (1998) provides a specific template that is used to complete the Status Certificate. Condominium corporations then take this template and fill in information as it pertains to the condominium. Broadly, the certificate’s headings are:
Mailing address
Address for service
Name of property manager
Directors and officers of the corporation
Common expenses
Upcoming payment due dates
Prepaid expenses for the unit
Extra amounts that are added to common expenses
Statement about the budget
Statement about the budget – interim increases
Statement about the budget – special assessments
Statement about the budget – additional information
Reserve fund balance
Reserve fund study
Reserve fund contribution
Reserve fund summary notice
Plans to increase the reserve fund
Outstanding judgements against the corporation
Party to proceedings before a court of law
Orders to amend the declaration
Tarion claims
Appointment of administrators or inspectors
Common element change agreements
Leasing of units
Substantial changes to corporation
Insurance
Phased condominium corporation information
Phased condominium corporation information – units owned by declarant
Vacant land condominium corporation information
Leasehold condominium corporation information – lessor contact information
Leasehold condominium corporation information – standing of leasehold interests
Leasehold condominium corporation information – status of leasehold interests
Attachments
Rights of a person requesting certificate
The certificate includes attachments and can be in excess of 20 documents, depending on the complexity of the corporation. These attachments include the declaration, bylaws, rules, policies, insurance certificate, budget, etc.
When taken together, the Status Certificate gives the prospective purchaser a great deal of information on the condominium corporation they are potentially buying into.
How do I read a Status Certificate?
Most owners or purchasers don’t read Status Certificates directly. They typically rely on a condominium lawyer to read and interpret the certificate for them. However, this often leads the owners with only a cursory understanding of their rights and responsibilities as an owner. At a minimum, we recommend the owner record the condominium manager’s contact email, and ensure that they understand the following:
Bylaws, Rules, Policies.
Common element fees.
Whether the corporation has enough cash to cover its operating expenses.
Whether the reserve fund is being properly funded.
Written by Michael Trendota*, RCM
Chief Operating Officer of Alwington Communities
Michael is a property management professional with experience operating a diverse set of buildings, including high-rise, low-rise, and townhouse-style. His passion is bringing neighbors together to build exciting and vibrant communities. Michael draws from his own condo board member experience to advise board members on the opportunities and challenges facing their communities. Michael holds a Masters of Business Administration from Queen’s University and is a Certified Property Manager.
* Though written by a qualified and experienced Condominium Manager, this article is not intended as legal advice. Please consult your own experts for advice.
