By Warren McNeil

If you have purchased a condominum before then I am sure that you have heard of a status certificate. If you haven’t and are considering buying a condo then read on.

A status certificate is a document containing information about the operational, legal and financials of a condominium corporation. This condo corporation is required to prepare the status certificate for each person (buyer/seller) that is requesting it. It is often the buyer requesting it during an offer. The condominium corporation must prepare the status certificate within 10 days. The fee for the certificate is $100 and can’t exceed that amount. Once a lawyer has had a chance to review the status certificate, They notify their client as to whether they should be concerned with any aspect of the document contents and then proceed to tell them to either waive or not waive. Like other conditions such as home inspection, financing or sale of buyers property, the status certificate condition is provided for the benefit of the buyer.

Here is what the clause looks like:

"This offer is conditional upon the Buyer’s lawyer reviewing the Status Certificate and Attachments and finding the Status Certificate and Attachments satisfactory in the Buyer’s Lawyer’s sole and absolute discretion. The Buyer agrees to request at the Buyer’s expense, the Status Certificate and Attachments within 10 days after acceptance of this Offer. Unless the buyer gives notice in writing to the Seller not later than 5:00 p.m. on the fifth day (Excluding Saturdays, Sundays and Statutory Holidays) following receipt by the buyer of the Status Certificate and attachments, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction."

 Here is what is typically included in a status certificate:

• Statement of common elements (including default  for the unit if any)
• amount payable by unit for common expenses
• Details of any increase in the common expenses for the unit since the date of current years budget. Reasons for increas must also be provided.
• Statements relating to any assessments of the reserve fund since the date of the current years budget including reasons for assessments.
• Information relating to any applications of amendments to the declaration
• Particulars of any outstanding judgements
• Status of any legal action that is currently being taken against the condo corporation
• Information about the current budget including an auditors report
• Copy of declaration by-laws and rules
• Listing of any agreements (management, insurance)
• Statement that requestor can view the documents
• Owner compliance of any current agreements that include modifications to the unit. e.g. additions, or changes to common elements
• details about the most recent reserve fund and amount. (No earlier then the end of the month and within 90 days of the certificate). Included are also the plans to increase the fund.
• number of leased units  for fiscal year preceding the status certificate date
• Certificate of insurance policies
• Any proposed or planned additions, alterations or any other improvements ot the common elements, other assets of the condo corporation
• A statement if a court has appointed an inspector persuant to the Act

There you go. Everything you need to know about the status certificate.

Disclaimer: Information in this post was collected from the resources below and is deemed to be accurate. Errors and ommision accepted.

Reference: OREA Provincial Reference Manual pg. 87
Easy Offer 2008: clause (CONDO-2)

If you are still awake after reading this, then thank you for reading!

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