Specific answers to the eight questions Ontario condo buyers and owners ask most often. Each answer links to the relevant guide for more detail.
A status certificate is a document produced by a condominium corporation that shows the financial and legal state of the building at a specific date. Under section 76 of the Condominium Act 1998, the corporation must provide it within 10 calendar days of a written request, and may charge no more than $100. The certificate is the primary document a buyer's lawyer reviews before a resale condo purchase goes firm.
The certificate covers the unit's current monthly common expenses, any arrears attached to the unit, the reserve fund balance and most recent study results, the corporation's insurance status, any active or threatened litigation involving the corporation, and any special assessments that have been approved or are being contemplated. Attached to the certificate are the full declaration, bylaws, and rules, which govern what owners can do with their units. For a detailed breakdown of each section and what to look for, see the status certificate guide. The CAO also publishes a plain-language guide to reading the document.
A special assessment is an additional one-time charge levied by the condominium corporation on unit owners to cover costs that the reserve fund can't meet. Under section 84 of the Condominium Act, the board can levy a special assessment without owner approval in most situations. The one significant exception is section 97: if the assessment exceeds 10% of the corporation's annual budgeted common expenses, the board must give notice to owners and hold a meeting before proceeding.
Special assessments are typically triggered by a major unexpected repair, a reserve fund that's been inadequately funded, or an emergency cost that wasn't anticipated in the reserve fund study. They're apportioned by unit factor, so larger units pay proportionally more. The board sets the payment terms, which may be a lump sum or spread over several months. Under section 85 of the Act, if an owner doesn't pay within 3 months of default, the corporation can register a lien against the unit. That lien has priority over most other encumbrances including a mortgage. For more detail on how assessments interact with reserve funds, see the reserve fund and special assessment guide.
Yes, a condominium corporation can restrict or prohibit pets through its declaration or rules. A blanket no-pets policy in the declaration is enforceable if it was in place when you purchased the unit. Size and breed restrictions are also common and generally enforceable when applied consistently. Some buildings permit cats but not dogs, or permit dogs only under a specified weight limit.
The important exception is service animals. A certified guide dog, hearing dog, or other service animal trained to perform specific tasks for a person with a disability is exempt from condo pet restrictions under the Ontario Human Rights Code. The Human Rights Code takes precedence over the Condominium Act and over the building's governing documents. A board that refuses to accommodate a legitimate service animal faces a human rights complaint, and that complaint is heard by the Human Rights Tribunal of Ontario, not the Condominium Authority Tribunal. Emotional support animals are treated differently. Whether one qualifies for accommodation depends on the specific circumstances and the nature of the disability-related need. If you rely on an animal for disability-related support, confirm the building's position and understand your rights before buying. The rules on pets and how service animals are handled are covered in more detail in the condo rules guide.
In most Toronto condos, no. Under section 58(1) of the Condominium Act, boards can prohibit or restrict short-term rentals through the corporation's rules or declaration. A large number of Toronto condo corporations have adopted explicit short-term rental prohibitions, and many of these are in the declaration rather than just the rules, making them more difficult to challenge or change.
Even if the building's own rules permitted short-term rentals, Toronto's municipal bylaw adds a separate layer of regulation. The City of Toronto requires short-term rental operators to be principal residents of the unit they're listing. You can't purchase a unit purely as an Airbnb investment if you don't live there as your primary residence. The principal residence requirement was upheld by the Local Planning Appeal Tribunal and remains in force. Both the building's governing documents and the city bylaw must permit short-term rentals before it's a legal option. If STR is part of your plan, check both layers explicitly before buying, and don't rely on what was permitted in the building before a rules change. The condo rules guide covers the full legal framework for short-term rentals in Ontario.
Phantom rent is the term used for the monthly interim occupancy fee paid by a pre-construction buyer during the period between taking possession of a unit and the building being registered as a condominium. During this period, you can move into the unit and occupy it, but you don't legally own it. There's no title to transfer yet because the building isn't registered. You occupy it as a regulated tenant of the developer.
Under section 80 of the Condominium Act, the monthly interim occupancy fee is calculated as: interest on the unpaid balance of the purchase price at the Bank of Canada conventional one-year mortgage rate, plus the estimated monthly property tax for the unit, plus the estimated monthly common expenses. The unpaid balance is the purchase price minus the deposits you've paid. On a $700,000 unit with $150,000 in deposits, the interest component is calculated on $550,000. None of this payment builds equity or reduces what you owe at final closing. Interim occupancy periods in Toronto typically run from a few months to over a year. The full phantom rent formula and how it fits into the pre-construction timeline is explained in the pre-construction guide.
Missing a maintenance fee payment sets a specific legal process in motion. The corporation will typically send a notice of default after 30 days. If the amount remains unpaid for 3 months from the date of default, section 85 of the Condominium Act allows the corporation to register a lien against the unit for the unpaid amount, interest, and the corporation's legal costs in registering the lien.
This lien has priority over most other encumbrances on the property, including a registered mortgage. That means the corporation gets paid before the mortgage lender in the event of a sale or power of sale. A lender who discovers a condo lien on a property they hold as security will treat it as a serious problem. In practice, most lenders require condo liens to be cleared immediately upon discovery. If you're selling a unit, any arrears or liens must be resolved before closing. If you're buying, your lawyer checks the status certificate for arrears and confirms no lien is registered. Missing payments also affects the unit's record in the status certificate, which any future buyer's lawyer will see. The practical advice is straightforward: if you're having trouble making payments, contact the corporation's management company early. Arrangements can sometimes be made that avoid the lien process.
The primary source is the status certificate, which every buyer should order and have a lawyer review before a resale purchase goes firm. The certificate includes the current reserve fund balance, the most recent reserve fund study, the current year operating budget, and disclosure of any pending assessments or litigation. From the reserve fund study, your lawyer can assess what percentage funded the reserve is relative to the study's projected requirements at this point in the building's lifecycle.
Beyond the status certificate, you can request the corporation's audited financial statements. These are available to unit owners and to prospective buyers in some circumstances, though the status certificate process is the standard route for buyers. The operating budget attached to the certificate shows what the building spends each year and on what. Look at whether the reserve fund contribution is a significant portion of the total budget, whether operating costs are rising faster than fees, and whether there are line items that suggest deferred maintenance. For buildings in Toronto, CondosReview.com provides building-level data on reserve fund health and fee history, which is useful context before you even order the certificate. The reserve fund and special assessment guide explains in detail what the study classes mean and how to interpret the funding level.
A resale condo is a unit that has already been built and registered as a condominium. You're buying from the current owner, title exists and transfers on closing, and you can physically inspect the unit before committing. The status certificate review gives you insight into the building's financial and legal health, and your lawyer has 10 days to assess it. The transaction follows a standard real estate purchase process with a firm closing date.
A pre-construction condo is one you buy from a developer before or during the construction period, often years before you take possession. You're committing to a contract, not a physical unit. Your deposits are held in trust but your money is at work for the developer for the duration of construction. The Condominium Act gives you a 10-calendar-day cooling-off period after signing to rescind the agreement for any reason and receive a full deposit refund. After that, you're bound to the contract. The developer has the right to extend the occupancy date through permitted delay provisions in the Agreement of Purchase and Sale. When the unit is ready, you enter the interim occupancy (phantom rent) period before the building registers and final closing occurs. Pre-construction involves different risks, a different timeline, and a different legal framework than resale. The two are covered in separate guides on this site: the resale buyer's guide and the pre-construction guide.
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