What it is, what each section means, the red flags to watch for, and how to use the 10-day lawyer review period effectively.
A status certificate is a document produced by a condominium corporation that tells a prospective buyer the financial and legal state of the building. Under section 76 of the Condominium Act 1998, the corporation must deliver it within 10 days of a request and can charge no more than $100. When you make an offer on a resale condo, your status certificate condition gives you 10 days to have a lawyer review it and walk away if something is seriously wrong.
Most buyers treat the status certificate as a formality. That's a mistake. It's the only document that tells you, before you're legally bound, whether the building you're buying into is financially sound.
The certificate is typically 100-200 pages long once all the attachments are included. The core document runs about 15-20 pages. Here's what each section covers and what to look for.
The current maintenance fee for the specific unit. This is what you'll pay every month. Confirm it matches what was advertised and check whether any increase is already approved for the coming year. Boards must give 60 days' notice before a fee increase, and some certificates note approved future increases.
Any unpaid common expenses for that unit. If the seller owes $3,000 in arrears, those are attached to the unit, not the person. As buyer, you inherit them at closing unless your lawyer negotiates otherwise. Always check this number and ensure it's addressed in the agreement before closing.
The current balance in the reserve fund and a summary of the most recent reserve fund study. The study tells you how much the corporation expects to spend on major repairs over the next 30 years and whether current contributions are sufficient. Look at both the raw balance and the percentage funded. A balance of $2 million sounds healthy until you see the study projects $8 million in repairs over the next decade.
Any current or threatened legal proceedings involving the corporation. A lawsuit against the developer for construction defects is common in newer buildings and isn't necessarily alarming. A lawsuit from a unit owner against the corporation, or a regulatory proceeding from the Condominium Authority of Ontario, warrants more scrutiny.
Confirmation that the corporation's building insurance is current. Your lawyer checks that coverage is in place and adequate. Note that the corporation's policy covers the common elements and the building structure, not your unit contents or improvements you make to the unit.
Any approved or contemplated special assessments not yet levied. This is one of the highest-risk items in the certificate. If the board has approved a $500,000 special assessment for a new roof but hasn't issued levy notices yet, it will appear here. You want to know about this before you buy.
The full governing documents are attached. This is where you find out whether pets are allowed, whether rentals are restricted, what the rules are on short-term rentals, parking and locker entitlements, and any restrictions on unit modifications. Read these if anything about how you plan to use the unit depends on them.
If the reserve fund is funded at less than 70% of what the most recent study recommends, you're likely looking at higher fees or a special assessment in the near future. Ask your lawyer to compare the funding level to the study's recommended balance at this point in time.
A special assessment that's been approved but not yet charged will land on whoever owns the unit when the levy notice goes out. If you close before the notice is issued, you pay it, not the seller. Your lawyer needs to catch this and either negotiate a price reduction or get a written confirmation of how it's handled at closing.
Some certificates note that the board has approved a fee increase that takes effect after the certificate date. A 10% increase on a $700/month fee is an extra $70/month the advertised number didn't reflect. Factor this into your carrying cost calculation.
Developer deficiency claims are normal in newer buildings. What's concerning is a claim by the corporation against the management company, a human rights application, or a Condominium Authority Tribunal proceeding involving a pattern of governance failures.
When you make an offer conditional on status certificate review, the standard condition gives you 10 business days from receipt of the certificate to review it and either waive the condition or walk away. In practice, your lawyer needs 2-3 days to review the full package properly.
Order the certificate before you put in an offer if the building allows it. Some sellers will provide one as part of their listing package. Otherwise, the corporation has 10 calendar days from the date of request to deliver it, so timing matters in a competitive market.
Send the full certificate package (not just the covering document) to your real estate lawyer as soon as you receive it. Ask them specifically to comment on: the reserve fund percentage funded, any pending or threatened special assessments, arrears attached to the unit, and any restrictive rules that affect how you plan to use the property. Don't waive the condition until you have your lawyer's written sign-off.
The Condominium Authority of Ontario publishes a plain-language guide to reading a status certificate. It's a useful supplement to your lawyer's review, particularly for understanding what the various disclosure requirements mean in practice. You can find it at the CAO status certificate resource page.
If you're also researching the overall health of a building before you offer, CondosReview.com rates Toronto buildings by reserve fund health, management, and fee history, which gives useful context before you even order a certificate.
Read the full buyer's guide for everything from pre-approval through closing day.
Full Buyer's Guide