Status Certificates: A Toronto Condo Buyer’s Guide
November 27, 2025
November 27, 2025
Before you fall in love with a view or a floor plan, make sure the numbers and rules behind the building support your goals. In Toronto, that means getting the condo’s status certificate reviewed before you firm up your offer. It is the clearest snapshot of a condominium corporation’s finances, governance and risks at a point in time. In this guide, you will learn what a status certificate includes, how it affects your budget and mortgage, which red flags to watch for, and the steps and timelines to plan for in Toronto. Let’s dive in.
A status certificate is an official package prepared by the condominium corporation or its property manager. In Ontario, it is set out under the Condominium Act and is a standard disclosure tool for resale condo purchases. You request it as a condition of your offer so you and your lawyer can review the building’s financial health, rules and any risks before you proceed.
You will typically see the corporation’s declaration and bylaws, recent financials, a reserve fund study or summary, an insurance summary, and recent minutes or a minutes summary. Think of it as a report card for the building at one moment in time. It is essential for your due diligence and for most lenders and lawyers who will not move forward without it.
A status certificate shows both immediate obligations and future risks. You will see your unit’s common expenses, any arrears tied to the unit, and whether there are special assessments. These items hit your monthly budget and can affect affordability.
It also outlines litigation, insurance limits and deductibles, and planned capital work. Lenders often review these details because they impact the security of the mortgage. Since the certificate is a snapshot, you should treat it as a starting point and ask for the most recent minutes or clarifications from the property manager when needed.
You will see the current owner’s name, your unit description, and any linked parking or lockers. It will also show your unit’s monthly common expenses and whether any arrears are registered. This matters because unit-level arrears can become your problem at closing if not addressed in the agreement.
The certificate states the current monthly fee and what it covers, like utilities, reserve contributions and management fees. It may note if certain utilities are separately metered. This is the line that goes into your monthly budget, so make sure you are comfortable with the amount and inclusions.
You will see the balance and contributions to the reserve fund and the date or findings of the most recent reserve fund study, if available. A low reserve or an outdated study raises the chance of special assessments for major repairs. Strong reserve planning supports stable fees and better long-term value.
The package should disclose any existing special assessments or ones under consideration, along with upcoming capital projects like roof, window or parking garage work. Special assessments can be large and immediate. You want clarity on the scope, timing and how payments are structured.
Look for any arrears tied to your specific unit and the total arrears across the corporation. High building-wide arrears can signal collection or governance problems that may lead to cash flow stress or fee increases.
The corporation must disclose ongoing lawsuits, such as construction defect claims. Litigation can add costs and uncertainty, and it may lead to special assessments or insurance complications. Ask for context on the stage of any case and potential exposure.
You will see the types and limits of coverage the corporation carries and the policy deductibles. High deductibles can shift more cost to individual owners after a loss. Check how this might affect your own condo insurance and any lender requirements.
Expect to see the property manager’s name and contract term and a sense of major vendor agreements, such as elevator maintenance. Stable management and smart contracts often support smoother operations and cost control.
The corporation’s rules govern pets, renovations, visitor parking, locker and parking transfers, and any rental restrictions. Confirm that your intended use aligns with the rules, and check whether any bylaw changes are in progress.
Minutes of recent board meetings or a summary often come with the certificate. Minutes can be the most current source of decisions, disputes and upcoming projects. They help you catch items not yet reflected in the formal certificate.
In Toronto, you usually include a status certificate condition in your offer. Once the agreement is conditional, request the certificate right away. The condominium corporation provides it after receiving a written request and payment of the prescribed fee.
Corporations work within statutory timelines, but practice varies. Plan for about 5 to 10 business days to obtain and review the package, and set your condition period accordingly. The fee is commonly paid by the purchaser and is typically in the low hundreds of dollars, though the exact amount varies by corporation.
Your lawyer interprets legal and financial disclosures, flags unit-level arrears, and assesses litigation and assessment risks. They can also advise on negotiating remedies or price adjustments if issues surface. Keep your lender informed early if significant findings arise, such as large assessments, low reserves or litigation.
When drafting your offer, include a clear condition that gives you enough time to receive and review the status certificate and related documents. Make sure everyone understands who will request and pay for the certificate so there are no delays.
Pre-construction purchases and newly registered condos can be different. A traditional status certificate may not be available before registration. Instead, you will rely on the developer’s disclosure documents, the draft declaration and the first-year budget. Review these closely and ask about contingency planning for early repairs and common elements.
Assignment sales add their own layers. The status certificate may be limited or evolving, and assignment agreements often have developer approvals and timelines that affect closing. Build in time for legal review so you understand all obligations and rights.
In recent years, many Toronto corporations have faced rising insurance costs and more capital repair projects, including façade, balcony and parking structure work. These realities can pressure fees and reserves and can lead to assessments. Lenders are paying close attention, so thorough status certificate review is one of the best ways to protect your financing and your long-term costs.
A status certificate is your clearest window into a condo’s finances, rules and risks before you commit. Focus on reserve fund health, special assessments, litigation, insurance and any arrears tied to the unit. Give yourself enough time to review and ask follow-up questions, and keep your lawyer and lender in the loop.
If you want a calm, step-by-step process and timely coordination with your lawyer, reach out to Sam Galloway. As a responsive, single point of contact who knows Toronto condos, Sam will help you build a clean, conditional offer and keep your review on track. When you are ready, connect with Sam Galloway and get moving with confidence.
From understanding market trends to mastering effective negotiation strategies, Sam’s sophisticated approach ensures you make informed decisions every step of the way.
