What a Condo Status Certificate Tells You Before You Buy in Markham

The short answer

A status certificate is the document an Ontario condo corporation issues about a specific unit and about the corporation that runs the building. If you are buying a resale condo in Markham, it is where you find out what the monthly fees really are, whether the unit owes money, how healthy the reserve fund is and whether the corporation is being sued.

The rules come from section 76 of the Condominium Act, 1998 and its general regulation. The corporation must use a prescribed form, can charge no more than $100 including taxes and must deliver the certificate within 10 days of receiving the request and payment.

This guide explains what the status certificate for an Ontario condo contains, what happens if it arrives late and the issues a lawyer looks for. It is general information, not legal advice. Your own real estate lawyer should review the certificate for the unit you are buying.

What is a status certificate?

Under section 76 of the Act, a condo corporation must give a status certificate for a unit to each person who requests one. The certificate must be in the prescribed form and must state the date it was made.

The Condominium Authority of Ontario (CAO) publishes the mandatory form. The regulation requires the certificate to follow the form the CAO specifies and the Minister approves.

The certificate matters most for resale buyers. The CAO describes status certificates as particularly important for prospective buyers of resale condos, because they contain key information about the unit and the corporation.

The certificate also carries legal weight. Section 76(6) says it binds the corporation, as of the date it is given, with respect to the information it contains, as against a purchaser or mortgagee who relies on it. If the certificate leaves out material information it is required to contain, section 76(4) deems it to include a statement that there is no such information.

Who requests it and how much it costs

The CAO says anyone can request a status certificate. The request goes to the condo corporation. The certificate itself must name the condominium manager if the corporation has one.

The fee is capped. Section 18(4) of Ontario Regulation 48/01 says the fee for a status certificate, including all the material that must be included in it, shall not exceed $100, inclusive of all applicable taxes. The regulation sets the cap as a flat dollar amount.

Some corporations offer a faster turnaround for more money. The CAO notes that corporations sometimes provide status certificates faster than 10 days and charge rush fees, but must by law provide a $100 option within 10 days.

Item	Rule	Where it comes from
Who can request it	Anyone	CAO
Maximum fee	$100, including all applicable taxes and all required material	O. Reg. 48/01, s. 18(4)
Deadline	10 days after the corporation receives the request and payment	Condominium Act, 1998, s. 76(3)
Form	The form the CAO specifies and publishes, as approved by the Minister	O. Reg. 48/01, s. 18(2) and (3)
If late	Deemed certificate on the day after the deadline	Condominium Act, 1998, s. 76(5)

The 10 day clock only starts once the corporation has both the request and the fee. If your offer is conditional on a lawyer’s review, build that into the timing you agree to.

What the status certificate must contain

The Act and the regulation together set a long list. These are the parts buyers care about most.

What the certificate shows	Why it matters
Common expenses for the unit and any default in paying them	Confirms the monthly fee and whether the current owner is behind
Any increase in common expenses declared since the current budget, with the reason	Signals a fee increase that may not appear in the listing
Any assessments levied against the unit since the current budget to increase the reserve fund, with the reason	Shows special assessments already charged
Whether a certificate of lien has been registered against the unit	Under the Act, an owner’s default on common expenses gives the corporation a lien against the unit
The most recent reserve fund study, the reserve fund balance and any plan to increase the fund	The single best indicator of whether large repairs are funded
The current budget, the last audited financial statements and the auditor’s report	Shows whether the corporation runs a surplus or a deficit
Outstanding judgments against the corporation and the status of legal actions	Litigation can lead to costs for owners
A certificate or memorandum of insurance for each current policy	Confirms the building is insured
The declaration, by-laws and rules	Sets out what you can and cannot do, including pets, rentals and renovations
Substantial changes to the common elements, assets or services the board has proposed but not implemented	Flags upcoming projects
The number of units the corporation was notified were leased in the preceding fiscal year	Useful for investors and owner occupiers alike
Whether a court has appointed an inspector or an administrator	A serious sign of governance problems

The regulation adds more, including the corporation’s mailing address, the name and contact details of the condominium manager, a statement of what the corporation knows about circumstances that may increase the common expenses for the unit and whether it has secured all insurance required under the Act.

On the reserve fund, section 76 requires the amount in the fund to be stated no earlier than the end of a month within 90 days of the date of the certificate. The regulation also asks for the balance at the start of the fiscal year, the unit’s annual contribution, the expected spending from the fund that year and whether the board expects the fund to be adequate for the year, in cases where the corporation has not sent owners a notice about a plan for future funding of the reserve fund.

What happens if the certificate is late

If the corporation misses the 10 day deadline, section 76(5) deems it to have given a certificate on the day after the deadline expired. That deemed certificate states three things only:

1. There has been no default in the payment of common expenses for the unit.
2. The board has not declared any increase in the common expenses for the unit since the date of the current budget.
3. The board has not levied any assessments against the unit since the date of the current budget to increase the contribution to the reserve fund.

That gives a buyer some protection on those three points. It tells you nothing about the reserve fund study, insurance, lawsuits or the rules. A late certificate is a reason to call your lawyer about your conditional deadline, not a reason to go firm without the real document.

Making your offer conditional on a lawyer’s review

The RECO buyer’s checklist advises buyers, where possible, to make an offer conditional on mortgage financing, a home inspection, the sale of an existing home or other factors that are important to them. On a resale condo, the review of the status certificate is one of those factors. The CAO says condo buyers should have their lawyers review status certificates.

A condition of this kind gives your lawyer a set period to review the certificate and the documents that come with it. How many days to allow is negotiated in each offer and depends on how quickly the certificate can be obtained and reviewed, so agree the timing with your lawyer and your agent before you sign.

RECO also warns that in competing offers it can be tempting to waive conditions and suggests thinking twice before doing so. If a seller already has a status certificate on hand, your lawyer may be able to review it before you submit, which lets you make a firm offer with more information. Confirm the certificate’s date, since the reserve fund figures and statements are only current as of that date.

Remember that the fee for the certificate is a small part of what you will spend. Our guides to closing costs when buying a home in Markham and land transfer tax in Markham cover the larger items.

Red flags a lawyer looks for

Every building is different and only your lawyer can tell you what a particular certificate means for you. These are the areas that commonly get the closest attention.

• Arrears on the unit. Unpaid common expenses on the unit or a certificate of lien registered against it.
• Fee increases already declared. An increase since the current budget and the reason given for it.
• Special assessments. Any assessment levied against the unit and whether the corporation knows of circumstances that may increase common expenses.
• A thin reserve fund. A balance or contribution level that the reserve fund study or the funding plan says is not adequate for upcoming major repairs.
• An old reserve fund study. The regulation requires a new reserve fund study within every three years after the preceding one, so the date of the latest study is worth checking.
• Litigation. Outstanding judgments or legal actions involving the corporation. The CAO notes that special assessments could be levied to cover litigation costs.
• Budget deficits. A current budget that shows a deficit or audited statements that raise questions.
• Insurance gaps. A statement that the corporation has not secured all the insurance the Act requires.
• Proposed major projects. Substantial changes to the common elements or services that the board has proposed but not yet carried out.
• Rules that do not fit your plans. Restrictions in the declaration, by-laws or rules on things like pets, leasing or renovations.
• An inspector or administrator. A court order appointing either one points to serious problems with how the corporation is run.

Under section 93 of the Act, a reserve fund must be used solely for major repair and replacement of the common elements and assets. Owners fund it through their common expenses. The CAO notes that a special assessment may be added to your condo fees if the corporation cannot cover its costs. That is why the reserve fund section of the certificate deserves a slow read.

Where Markham’s condos are

Our neighbourhood guides point to where condo stock is found in Markham. Downtown Markham is overwhelmingly a condo and townhome market, with condo towers on the Highway 7 corridor and buildings that continue to be delivered. Our Unionville neighbourhood guide describes mid-rise condos along the Highway 7 corridor on its south edge, toward Downtown Markham.

Thornhill and Milliken Mills both have condo apartments along their main corridors, Cornell has newer condo stock and Cathedraltown has some low rise condo stock. Whichever area you are looking in, the building matters as much as the neighbourhood. The status certificate is how you learn about the building.

A resale condo is also one of the most common landing spots for buyers downsizing out of a larger Markham house. If that describes you, our downsizing in Markham guide covers how to plan the sale and the purchase together.

Before you make an offer on a Markham condo

1. Ask whether a recent status certificate is already available for the unit and check its date.
2. Choose a real estate lawyer with condo experience before you start writing offers.
3. Make your offer conditional on your lawyer’s review of the status certificate, with a timeline your lawyer is comfortable with.
4. Read the rules yourself for anything that affects how you plan to live in or rent the unit.
5. Compare the monthly common expenses and the reserve fund position across the buildings you are considering, alongside the prices.
6. Budget for the full cost of buying, beyond the down payment.

Our buyer page explains how we search, check and make offers in Markham. Our first time home buyer guide covers the extra steps for a first purchase. If you are weighing a condo in Markham and want help reading the building before you commit, contact us.