Real Estate Law: What is a Status Certificate?

The status certificate is a document that provides a report on the current status of the condominium corporation. The status certificate package includes a number of items, including the condominium declaration, by-laws, reserve fund, budget, condominium insurance details, management contract(s), minutes of the last annual general meeting and mention of any lawsuits involving the corporation, if any.

The full details of what the status certificate is to contain has been produced for the reader below as per Section 76(1) of the Condominium Act.

What you need to know:

• A status certificate and estoppel certificate are one and the same document. A status certificate was previously referred to as an estoppel certificate.

• The status certificate can be, more or less, ordered by anyone so long as the request is made in a writing together with the proscribed fee as per Section 76(2) of the Condominium Act. The maximum fee for the status certificate is $100.00 including taxes.

• Section 76(3) of the Condominium Act provides that the corporation shall prepare and provide the status certificate within 10 days following receiving a) a request for it and b) receiving payment of the aforementioned fee charged by the corporation.

• The purpose of the status certificate is to allow a potential buyer of a condominium unit the opportunity to have as much information as possible about their unit as well as the fiscal situation of the building in general. For example: 1) whether any major work is to be done to the building 2) whether or not there are any arrears or increases with respect to the common expenses 3) the amount of the reserve fund and whether the reserve fund is adequate for any major work 4) whether there are any claims against the corporation or whether the corporation is involved in any legal proceedings.

• If you are buying a resale condominium, it is extremely important to insure that the agreement of purchase and sale is conditional upon the review of the status certificate by your lawyer.

• The status certificate allows the potential buyer to review and investigate the condominium rules, including for example, to investigate whether a pet is allowed.

Section 76(1) of the Condominium Act:

(a) a statement of the common expenses for the unit and the default, if any, in payment of the common expenses;

(b) a statement of the increase, if any, in the common expenses for the unit that the board has declared since the date of the budget of the corporation for the current fiscal year and the reason for the increase;

(c) a statement of the assessments, if any, that the board has levied against the unit since the date of the budget of the corporation for the current fiscal year to increase the contribution to the reserve fund and the reason for the assessments;

(d) a statement of the address for service of the corporation;

(e) a statement of the names and address for service of the directors and officers of the corporation;

(f) a copy of the current declaration, by-laws and rules;

(g) a copy of all applications made under section 109 to amend the declaration for which the court has not made an order;

(h) a statement of all outstanding judgments against the corporation and the status of all legal actions to which the corporation is a party;

(i) a copy of the budget of the corporation for the current fiscal year, the last annual audited financial statements and the auditor's report on the statements;

(j) a list of all current agreements mentioned in section 111, 112 or 113 and all current agreements between the corporation and another corporation or between corporation and the owner of the unit.

(k) a statement that the person requesting the status certificate has the rights described in subsection (7) and (8) with respect to the agreements mentioned in clause (j);

(l) a statement whether the parties have complied with all current agreements mentioned in clause 98(1)(b) with respect to the unit;

(m) a statement with respect to,

(i) the most recent reserve fund study and updates to it;

(ii) the amount in the reserve fund no earlier than at the end of a month within 90 days of
the date of the status certificate, and

(iii) current plans, if any, to increase the reserve fund under subsection 94(8);

(n) a statement of those additions, alterations or improvements to the common elements, those changes in the assets of the corporation and those changes in a service of the corporation that are substantial and that the board has proposed but has not implemented, together with a statement of the purpose of them;

(o) a statement of the number of units for which the corporation has received notice under section 83 that the unit was leased during the fiscal year preceding the date of the status certificate;

(p) a certificate or memorandum of insurance for each of the current insurance policies;

(q) a statement of the amounts, if any, that this Act requires be added to the common expenses payable for the unit;

(r) a statement whether the Superior Court of Justice has made an order appointing an inspector under section 130 or an administrator under section 131;

(s) all other material that the regulations made under this Act requires.