Condominium Status Certificates 2

STATUS CERTIFICATES

1)   NAME
(a) The term “Status Certificates” replaces “Estoppel Certificates”.

2)   TIME
(a) A status certificate which includes all of the required attachments must be given to anyone who requests it within 10 days of receipt of payment for it.

3)    CONTENTS
The status certificate must contain;

  • A statement of the common expenses for the unit and the default, if any, in payment of the common expenses;
  • A statement of the increase, if any, in the common expenses for the unit that the board has declared since the date of the budget of the corporation for the current fiscal year and the reason for the increase;
  • A statement of the assessments, if any, that the board has levied against the unit since the date of the budget of the corporation for the current fiscal year to increase the contribution to the reserve fund and the reason for the assessments;
  • A statement of the address for service of the corporation;
  • A statement of the names and address for service of the directors and officers of the corporation;
  • A copy of the current declaration, bylaws and rules;
  • A copy of all applications made to amend the declaration for which the court has not made an order;
  • A statement of all outstanding judgments against the corporation and the status of all legal actions to which the corporation is a party;
  • A copy of the budget of the corporation for the current fiscal year, the last annual audited financial statements and the auditor’s report on the statements;
  • A list of all current agreements mentioned in section 111, 112 or 113 [1] and all current agreements between the corporation and another corporation or between the corporation and the owner of the unit;
  • A statement that the person requesting the status certificate has the rights to review and copy all the agreements referred to in (j);
  • A statement whether the parties have complied with all current agreements between the owner and the Condominium with respect to owner effected changes to the common elements under section 98 of the Bill;
  • A statement with respect to:    
    • (i)    The most recent reserve fund study and updates to it,
    • (ii)   The amount in the reserve fund no earlier than at the end of a month within 90 days of the date of the status certificate, and
    • (iii) Current plans, if any, to increase the reserve fund;
  • A statement of those additions, alterations or improvements to the common elements, those changes in the assets of the corporation and those changes in a service of the corporation that are substantial and that the board has proposed but has not implemented, together with a statement of the purpose of them;
  • A statement of the number of units for which the corporation has received notice that such units are leased during the fiscal year preceding the date of the status certificate;
  • A certificate or memorandum of insurance for each of the current insurance policies;
  • A statement of the amounts, if any, that this Act requires be added to the common expenses payable for the unit;
  • A statement whether the Ontario Court (General Division) has made an order appointing an inspector or an administrator;
  • All other material that the regulations made under this Act require.
    • (b) If a status certificate omits material information that it is required to contain, the certificate is deemed to include a statement that there is no such information.
    • (c) If the Condominium does not provide a requested status certificate it is deemed to have given a certificate stating that:
      • There has been no default in the payment of common expenses for the unit;
      • The board has not declared any increase in the common expenses for the unit since the date of the budget of the corporation for the current fiscal year; and
      • The board has not levied any assessments against the unit since the date of the budget of the corporation for the current fiscal year to increase the contribution to the reserve fund.
    • (d) The condominium can charge a fee of $100.00 inclusive of all taxes and disbursements, (such as copying charges, etc...) for providing the certificate.

 

Reproduced with the consent of the Northwestern Ontario Chapter of the Canadian Condominium Institute and the Golden Horseshoe Chapter of the Canadian Condominum Institute, Level 100 Condominium Administration Course.

WHAT IF THE STATUS CERTIFICATE IS WRONG?

Section 76(6) of the Act provides that the Status Certificate binds the Condominium Corporation.

There is no right of rescission in the Status Certificate is wrong.

There is no penalty on the Condominium Corporation under the Act for issuing a Status Certificate that is wrong.

If the Status Certificate is wrong, then the Condominium Corporation may be prevented from taking certain steps against the new unit owner.  For example, if the amount of the common elements expenses was incorrect, then the Buyer may not have to pay the increased amount.  Another example might be if the Seller had made changes to the exclusive use common elements, i.e. a balcony or parking space, without the consent of the Condominium Corporation, but this was not disclosed in the Status Certificate, then the condominium may not be able to force the unit holder to remove the changes.  Another example might be if the Condominium hadn’t provided detail of any increased payments required to the reserve fund, then that increase may not be enforceable against the Buyer.

ONTARIO REAL ESTATE ASSOCIATION (“OREA”) CONDOMINIUM CLAUSES

CONDO - 1 Condition – Review of Condominium Documents – By Specific Date

This offer is conditional upon the Buyer’s lawyer reviewing the Status Certificate and Attachments and finding the Status Certificate and Attachments satisfactory in the Buyer’s Lawyer’s sole and absolute discretion. The _____________(Buyer/Seller) agrees to request at the __________________________________________(Buyer/Seller) expense, the Status Certificate and Attachments within _______ days after acceptance of this Offer.  Unless the buyer gives notice in writing to the Seller not later than 5:00 p.m. on the _____________ day of _____________________ 20, ____ , that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer’s sole option by notice in writing to the Seller within the time period stated herein.

CONDO - 2 Condition – Review of Condominium Documents – Within ____ Days

This offer is conditional upon the Buyer’s lawyer reviewing the Status Certificate and Attachments and finding the Status Certificate and Attachments satisfactory in the Buyer’s Lawyer’s sole and absolute discretion ____________(Buyer/Seller) agrees to request at the___________________(Buyer/Seller)  expense, the Status Certificate and Attachments within _______ days after acceptance of this Offer. Unless the buyer gives notice in writing to the Seller not later than 5:00 p.m. on the fifth day (Excluding Saturdays, Sundays and Statutory Holidays) following receipt by the buyer of the Status Certificate and attachments, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer’s sole option by notice in writing to the Seller within the time period stated herein.

CONDO - 3 Alterations By Owner

The Seller represents and warrants that, with respect to the unit, the Condominium Act, Declaration, Bylaws and Rules of the Condominium Corporation have been complied with, and that no improvements, additions, alterations or repairs that require the consent of the Condominium Corporation have been carried out in the said unit, the exclusive use areas or the common elements, unless the required consent has been obtained from the Condominium Corporation. This warranty shall survive and not merge on the completion of this transaction.

CONDO - 4 Alterations/Changes to Unit During Interim Occupancy

The Buyer covenants and agrees that no alterations will be made to the unit during the term of interim occupancy. Upon completion of the transaction, the Buyer agrees to abide by the By-laws and Rules relating to alterations and changes within the unit.

CONDO - 7 Occupancy by Buyer Prior to Completion of Construction

The Buyer acknowledges that the unit being acquired is currently under construction. The Buyer shall take occupancy of the unit provided that the interior of the unit has been substantially completed, notwithstanding that the common areas have not been substantially finished. The Seller agrees to complete same in a good and workmanlike manner in a reasonable period of time. The Buyer further acknowledges that failure to complete either the unit or the common areas by the occupancy date in no way relieves the Buyer from completing the transaction.

CONDO/POTL SCHEDULE “B” - Common Elements Condominium (POTL)

NOTE: To be used with the standard Agreement of Purchase and Sale (Form 100) for the sale of a freehold property that also includes an interest in a Common Elements Condominium.

PROPERTY: The property shall be deemed to include a common interest in the Condominium Corporation being __________________ Condominium Plan No. __________________ as more particularly set out on the Declaration and Description.

STATUS CERTIFICATE AND MANAGEMENT OF CONDOMINIUM: Seller represents and warrants to Buyer that there are no special assessments contemplated by the Condominium Corporation, and there are no legal actions pending by or against or contemplated by the Condominium Corporation. The Seller consents to a request by the Buyer or the Buyer’s authorized representative for a Status Certificate from the Condominium Corporation. Buyer acknowledges that the Condominium Corporation may have entered into a Management Agreement for the management of the condominium property.

MEETINGS: Seller represents and warrants to Buyer that at the time of the acceptance of this Offer the Seller has not received a notice convening a special or general meeting of the Condominium Corporation respecting (a) the termination of the government of the condominium property; (b) any substantial alteration in or substantial addition to the common elements or the renovation thereof; OR (c) any substantial change in the assets or liabilities of the Condominium Corporation; and Seller covenants that if the Seller receives any such notice prior to the date of completion Seller shall forthwith notify the Buyer in writing and Buyer may thereupon at the Buyer’s option declare the Agreement null and void and all monies paid by the Buyer shall be refunded without interest or deduction.

TITLE: Buyer agrees to accept title to the Property subject to the provisions of the Condominium Act and its Regulations and the terms, conditions and provisions of the Declaration, Description and By-laws, Occupancy Standards By-laws, including the Common Element Rules and other Rules and Regulations.

Reproduced with the consent and permission of the Ontario Real Estate Association (“OREA”) ©OREA, for use only by OREA members.

Agreements for management, provision of goods or services on a continuing basis,  provision of facilities to the corporation on other than a non-profit basis,  lease of all or part of the common elements for business purposes and/or the mutual use, provision or maintenance or the cost-sharing of facilities or services entered into before the turnover meeting [1]

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