What Is A Status Certificate? Do I Need To Read It?

In Toronto, as part of the Ontario Condo Act, condo buyers have access to a Status Certificate. It is put together by the condo board with updated information about the building. Most notably, this document provides information about the building’s financial status. 

If you’re going to financially invest in a condo, don’t you want to know everything you can about what you’re putting your money into? Of course you do! 

So yes, order and read the Status Certificate. 

What is included in a Status Certificate? It will answer a lot about the unit and the building, including:

• How much money is currently in the building’s Reserve Fund?

• Is there is enough money in the Reserve Fund to cover ongoing maintenance? 

• Are there are any Special Assessments being considered by the board (or any already occurring) because of needed repairs?

• What are the by-laws and rules regarding amenity space, pets, and more?

• Who manages the building? What is their reputation? 

• Are there are any lawsuits against the condo corporation?

Why this information is important: It helps you see the current state of the property and even predict future costs. Also:

• A healthy Reserve Fund means a more financially secure property.

• If there are major repairs coming up, an increase in maintenance fees will likely be coming up as well.

• If you have or want to get a certain pet, make sure the rules allow it.

• If the building is in legal trouble, you’ll want to find out why. 

• You can factor any upcoming costs into your offer price if you still want the property.

Now that you want to read over the Status Certificate, consider adding a condition in your sale agreement that you (with a lawyer and/or real estate agent) be allowed to review the certificate before agreeing to buy. 

All of the information in the Status Certificate will allow you to gain insight into your future investment, and enter into condo ownership without any hidden surprises!