The condo status certificate: what I read first

When you buy a condo in Ontario, you buy a share of a corporation as well as a unit. The status certificate is the corporation’s report card: a package of documents describing its finances, rules and risks. The condominium corporation must provide it on request, for a fee set by regulation.

The reserve fund

The reserve fund pays for big repairs: roofs, elevators, garage membranes, windows. The certificate tells you the balance and whether the corporation expects it to be enough. A thin reserve can mean a special assessment, a one-time bill to every owner.

Fee increases

Look for any budgeted or planned increase in monthly fees. A unit that’s affordable at today’s fee may not be at next year’s.

Lawsuits and insurance

The certificate lists legal actions involving the corporation. A dispute with the builder over construction defects can be a good thing in the long run, or a long and costly one. The insurance deductible matters too, because owners can be charged up to the deductible for damage that starts in their unit.

Rules that affect how you live

Pets, rentals, short-term rentals, renovations, parking and lockers. Make sure the unit you’re buying comes with the parking spot and locker you think it does, and that they’re owned or exclusive-use as described.

I read every status certificate before my clients commit, and I recommend a lawyer reviews it too. It’s a condition worth having in any condo offer.