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Decoding a Status Certificate
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M. Wajahat Faizan
July 4, 2025
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Purchasing a condominium in Ontario demands more than selecting the right unit! One of the most important aspects of this transaction is a thorough review of the status certificate. What is a status certificate you ask? It is the statutory disclosure document under section 72 of the Condominium Act, 1998[1] provided by a condominium corporation within 10 days of receipt of written request to order, which is usually done by a seller or their realtor. This status certificate package assembles key documentation, including the declaration and bylaws, financial statements, insurance particulars and noted ongoing litigation particulars, as well as other material information about the dwelling unit, parking and/or locker units, and the condominium corporation.
The status certificate provides copies of the condominium corporation declaration and bylaws that define the corporation’s governance structure, establishing voting procedures, meeting protocols and the method for enforcing bylaws. The status certificate identifies the specific unit and its proportionate share of common expenses, enabling purchasers to assess how changes to shared common elements may impact monthly common expenses (maintenance fees). It shows the approved budget alongside year-to-date expenditures, facilitating the identification of material variances that could signal under-budgeting or unforeseen repair costs. The document also reveals the current reserve fund balance and confirms whether contributions have been made in accordance with the most recent reserve fund study. A well-funded reserve usually anticipates the future need for large, one-time capital costs, whereas a low balance reserve or missed contributions indicates a heightened risk of financing capital costs by way of special assessments, financing, and/or increases to the monthly common expenses.
The status certificate also includes the building’s insurance details such as who the insurer is, the coverage limits, deductibles, and when each policy expires. If there’s a lapse in coverage or the limits are too low, unit owners could face large out-of-pocket bills after a major claim. If the seller owes any outstanding arrears on the unit, the purchase agreement should either require the seller to pay those arrears before closing, or direct payment of the arrears from the closing proceeds or provide the buyer with a credit in the amount of the arrears on the statement of adjustments.
Decoding a status certificate demands a proper review, analysis and seasoned legal expertise. Our lawyers at Kormans LLP are equipped and available to assist buyers in identifying potential red flags early, negotiate critical terms to help ensure a smooth and stress-free transaction without unwelcome surprises. For a consultation tailored to your needs, contact Kormans LLP at info@kormans.ca or (905) 270-6660.
Faizan’s academic background includes a Juris Doctor (J.D.), an LL.M. from Aberdeen Business School in Scotland, and an LL.B. (Hons.) from the University of London. He has also earned certifications in Construction Law and Public Policy from the prestigious Osgoode Hall Law School, showcasing his diverse expertise across multiple areas of law. After being called to the Ontario Bar in 2020, he gained experience in real estate, commercial, and immigration law at a boutique firm before joining Kormans LLP.
Specializing in a wide range of legal services, Faizan focuses on residential and commercial real estate transactions, financing, wills and estate planning, and contractual matters. His expertise also extends to Islamic wills and Sharia-compliant financing, where he offers culturally sensitive solutions tailored to the needs of diverse clients.
Faizan’s thought leadership is evident in his published articles on Islamic wills and Halal mortgages, which can be found on the Kormans website. His expertise extends beyond Islamic wills, with a deep understanding of real estate law showcased through writings on topics such as Tarion warranties, joint tenancy, and easements. These works highlight his broad knowledge of property law and commitment to providing clients with clear, informed guidance.
In addition to his contributions to real estate law, Faizan has made significant strides in immigration law. His representation before the board in the landmark case of Vilcassim v. Canada helped establish a crucial precedent in children’s rights within Canadian immigration law.
With a strong background in law, Faizan continues to teach as one of the pioneering professors in the Graduate Diploma in Immigration and Citizenship Law program at the prestigious Queen’s University, where he shares his practical experience and knowledge with future professionals.
His contributions to the legal field were recognized with the Queen Elizabeth II Platinum Jubilee Award Pin, honoring his dedication and service to immigration law. He is also the recipient of the King Charles III Coronation Medal, a prestigious award recognizing contributions to community and public service. This recognition was granted through a rigorous selection process led by the Mississauga Streetsville Community Leadership Association and the Canadian Heraldic Authority at the Chancellery of Honours, Rideau Hall.
Outside of his professional life, he enjoys travelling, has a passion for cricket, plays weekend squash and frequently participates in youth mentorship programs.
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Purchasing a condominium in Ontario demands more than selecting the right unit! One of the most important aspects of this transaction is a thorough review of the status certificate.
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