The status certificate on my Ontario condo purchase shows problems — what are my options?
A status certificate discloses reserve fund health, special assessments, arrears and litigation, and a certificate that reveals a material problem is normally the buyer's window to renegotiate or walk away.
Under the Condominium Act, 1998 a corporation must deliver a status certificate within ten days of a request. It discloses the common expenses for the unit, arrears, budget shortfalls, reserve fund studies, planned special assessments, insurance and outstanding litigation.
Where the agreement of purchase and sale is conditional on review of the certificate, an adverse disclosure is the buyer's leverage: waive, renegotiate the price, or terminate within the condition period. After waiver the corporation is generally bound by what the certificate said, so a defect not disclosed there may fall on the corporation rather than the buyer.
Recurring red flags are an underfunded reserve, a pending assessment for garage or envelope repairs, and litigation against the declarant. Each can convert into a five-figure obligation shortly after closing.
Source: Condominium Act, 1998, S.O. 1998, c. 19
This work is handled by Samoy Gordon (Real estate). Read more about real estate at VK Law Group, or send us the facts and we will tell you where you stand.
This content is general information about Ontario and Canadian law only. It is not legal advice, it is not reviewed, vetted or verified for your situation, and it should be treated like any other general information available on the internet. It cannot be relied upon or presented to a court, tribunal or opposing party as legal advice. Reading it creates no solicitor-client relationship — that arises only under a signed written retainer with fees paid. Only a properly retained lawyer can advise you. If you are facing a legal issue, or a deadline may be running, we strongly recommend you retain a lawyer rather than proceed on your own.