Condo purchases and sales can be more complex than other real estate transactions. A buyer isn’t just purchasing the individual unit, they’re becoming part of a built-in community, complete with shared spaces, amenities and the responsibilities and bylaws that go with them.

A seller often has to try twice as hard to appeal to a buyer, especially in periods of low demand. When a move is on the horizon, reviewing the status certificate is an essential early step. Today, we’ll answer some of the questions you may have about status certificates if a condo is on your mind.

An accurate, unbiased assessment is the foundation of an effective condo-selling strategy. Start by booking your complimentary home evaluation with our experts.

What Is a Status Certificate for a Condo?

Condos are the only type of real estate that come with status certificates because they’re the only housing type that has a condo corporation to oversee the health of the building. A seller, buyer, real estate agent, lawyer or lender can all request a status certificate in Ontario.

Someone selling a condo may feel a little on the fence about this step. No one wants to hear about any red flags about their building that could jeopardize their ability to find a buyer. Plus, so many aspects of the report are beyond the control of the owner.

However, the buyer will almost certainly request to see the status certificate. If they don’t, their agent will. If the agent doesn’t, the lawyer absolutely will, and so will the mortgage lender.

In any case, knowing about any problems in advance allows you to plan and negotiate around them. If there are any issues within your control, such as overdue maintenance fees, you can resolve them before your listing goes on the MLS®.

If you’re buying a condo, a status certificate reviewed by an agent and a lawyer is an absolute must. You can even make it a condition of purchase when submitting an offer.

Do you have more questions about selling property, what real estate agent to choose and when to list? You’ll find answers in the posts below:

• Fact Vs Fiction About Working With A Real Estate Agent
• Is It a Good Time to Sell My House in Ontario?
• What Does Sold Conditional Mean?

What to Watch Out For

A status certificate reports on several aspects of a building that a buyer should consider before making an offer. It provides information about reserve funds, any lawsuits against the corporation and any bylaws currently in effect. For example, if you have pets, be sure that the building permits them.

(The condo declaration overrides the more pet-friendly Residential Tenancies Act. When renting an apartment, the landlord can’t tell you to leave your beloved dog or cat behind. The condo declaration can, even though you own the unit.)

A careful status certificate review can also prevent financial stress for the buyer, as it helps them anticipate any impending special assessments or major increases in maintenance fees. Based on this information, a buyer might decide to move on to another option. Alternatively, their agent may suggest negotiating on price to compensate for any future expenses.

The quality of the building and funding are a major area of consideration.

• If the building has been well-maintained and the reserve fund is well-supplied, the condo could very well be a worthy investment.
• On the other hand, you might think twice about placing an offer if the status certificate indicates no repairs for over a decade.

Here are some other points to review with your real estate agent:

• If the building has adequate insurance, especially against water damage. Otherwise, you might find yourself responsible for any gaps.
• How many units are owner-occupied. A high ratio of leased condos can create more wear and tear in the common areas.
• That the legal description matches your expectations. Otherwise, you might think that you own your parking spot when you simply have exclusive use.
• Any unauthorized renovations by a previous owner. The condo corporation could compel you to change it back at your own expense.
• If there any upcoming special assessments. This is when a big capital expenditure is about to be taken on, i.e. for new roofs or flooring in hallways, and the reserve fund doesn’t have the cash to fund it. It can be a sign of a potential fee increase.
• How healthy the reserve fund is. Think of the reserve fund as ‘savings account’ for the condo corporation. It’s funded by a portion of the monthly condo fees paid by each owner, and is used for major repair or replacement of common elements.

Selling a condo can be challenging in a shifting market. The posts below can help you plan and succeed:

• How to Prepare Your Home for a First-Time Buyer
• Our Full-Service Real Estate Team’s Guide to Marketing Your Home
• The Power of Staging When Selling Your Home

How to Order a Status Certificate in Ontario

Nearly anyone can request a status certificate through the condo corporation. Today, online platforms such as StatusCertificate.com and FirstService Residential make it easier than ever.

Usually, there is a small cost to order a status certificate that is legally capped at $100, plus any platform fees or rush requests. Who pays? 

It depends greatly on the market, but the seller typically covers the cost before listing the condo. After you submit your request, the condo corporation must respond within 10 calendar days.

Are you planning to buy a condo and are curious about what your budget should be? Our buying calculator will give you an estimate.

How Long Is a Status Certificate Valid for in Ontario?

Technically speaking, since status certificates provide a snapshot of the unit on the date it was issued, they’re only “legally binding” for the corporation on one day. Requesting a report is never a one-and-done deal because a building’s financial and physical health can change.

Old issues can be resolved and new issues can be discovered, which is why you need a fresh status certificate whenever you decide to buy or sell.

Fortunately, most lenders will accept them as long as they are no more than 30 days old. The buyer needs to act swiftly and diligently to arrange for financing, but there is no reason to panic.

Regardless of what a status certificate reveals, it puts you at an advantage. As a seller, you can work with your real estate agent and management company to resolve any issues, if possible. If your building gets a clean bill of health, the results can be an excellent negotiation tool.

When buying, a positive status certificate review can help you move forward with peace of mind. Instead of worrying about condo fees and maintenance, you’ll focus on how to decorate your new space and make it your own.

Do you have questions about buying or selling a condo in today’s market? Our top agents in Hamilton & Burlington can help you get the results you need. Reach out today with any questions you have, or call 905-332-9223 to connect with our office.