Why Status Certificates Matter
When you’re buying or selling a Toronto condo, the status certificate is one of the most important documents in the deal. It’s a snapshot of the building’s financial health, reserve fund, insurance, and any legal issues that could impact ownership. Lenders and lawyers rely on it to confirm that you’re not walking into unexpected costs—or worse, a building with looming legal trouble.
The Legal Reality: Valid Only on the Day It’s Issued
Here’s the key takeaway: a status certificate is legally valid only on the date it’s produced. According to the Ontario Condominium Act, it’s essentially a “point-in-time” document. Think of it like a financial snapshot—accurate the moment it’s taken, but not guaranteed tomorrow. Condo boards aren’t required to notify you of any changes after the certificate is issued.
The Practical Reality: Lawyers and Lenders Play by Different Rules
While the law is clear, real-world practice adds a layer of interpretation. Lawyers and lenders treat the document as “current” for a certain window of time:
Lawyers
- Most lawyers will review a status certificate within 10 days of issuance.
- Between 30–60 days, many will request a verbal update from property management to confirm nothing has changed.
- Past 60 days, some lawyers may advise ordering a new one if the deal is still pending.
Lenders
- Most lenders require a status certificate that’s no more than 30 days old before approving mortgage funds.
- Beyond 90 days, virtually every lender will require a fresh certificate, no matter what.
Why There’s No Universal Rule
The reason for this inconsistency is simple: condo finances can change fast. A new special assessment, a lawsuit, or unexpected repairs can throw a building’s financials off balance in a matter of weeks. Lawyers and lenders set their own risk tolerance, which is why two deals on identical units might have different requirements.
Real-World Example
Not long ago, we had a deal where the status certificate was just outside the 90-day window. The lender wouldn’t release funds until a new certificate was ordered—costing the seller time and the buyer an extra $100 in fees. Nothing had changed in the building’s finances, but the lender’s policy was firm: no exceptions beyond 90 days.
Best Practices for Buyers and Sellers
- Track the date carefully. Treat the issue date as a countdown clock.
- Expect lender caution. If financing is involved, budget for the possibility of ordering a second certificate.
- Talk to your lawyer early. Ask how long they’re comfortable relying on an older certificate.
- If you’re selling, be proactive. If your certificate is nearing 60 days old and the deal isn’t firm yet, consider ordering a new one before being asked.
Quick FAQ
Can you rely on an old status certificate if nothing has changed?
Sometimes, but only with confirmation. Lawyers may request verbal updates, and lenders often won’t accept verbal assurance beyond 30–60 days.
Who pays for a new status certificate if one is needed?
Typically, the seller provides the initial certificate. If a new one is required due to delays, it’s often negotiated, but sellers usually cover it to keep the deal moving.
What if something changes after the certificate is issued?
Buyers can request an updated certificate, and significant changes (like a new special assessment) could give them grounds to back out before firming the deal.
Thinking About Buying or Selling a Condo?
Understanding the fine print of a status certificate can make or break a deal—and that’s where we come in. Whether you’re reviewing one for a potential purchase or preparing your unit for sale, our team knows exactly what to look for (and how to keep deals moving, even when lenders get picky).
Reach out to us today to talk through your condo plans—let’s make sure your next move is a confident one.
