August 2024
Status certificates deserve respect. They are consumer protection documents. Inaccurate information and poorly considered replies to inquires can create problems for everyone involved including a condominium corporation and management.
The role of condominium management does not include supporting or facilitating the sale of units. Their role is to provide disclosures in the status certificate under Section 76(1) of the Condominium Act. Inevitably, questions will arise from a buyer, seller or lawyer. When they do, it is best for the corporation to conduct inquiries or discussions in writing.
If someone calls asking questions about the content of a status certificate, remain uninvolved to the greatest extent possible
As a condominium manager, it is best to remain impartial and not get involved in the selling process. If someone calls asking questions about the content of a status certificate, remain uninvolved to the greatest extent possible. An unhappy buyer may want to hold the corporation or management accountable for anything they may say.
If someone asks for details about a current lawsuit or possible special assessment, discussing this on the telephone, in person or by e-mail is probably not a good idea. There can be misunderstandings. That conversation could involve management or the corporation in a dispute between the purchaser and seller of a condo unit. If a conversation is necessary or seems innocuous, maintain a record of what transpired.
Buyers or their lawyers may desire an update on the status certificate prior to closing on a sale. They may desire a quick conversation rather than requesting and receiving documents which can delay a sale. From the management perspective, these conversations can involve interpretations that differ from what is provided on the certificate. These are matters best addressed between buyer and seller, or their lawyers.
If specific records are requested, a Request for Records form is provided by the Condominium Authority of Ontario. This process formalizes and provides a record of the request. The Condo Board can then take time to consider the request and to consult a lawyer, if necessary, before deciding to approve or deny the request. The buyer or seller’s desire for a faster response should not be a consideration.
Taking the time to get a status certificate right and responding to inquiries in an appropriate manner is the best approach to supporting your condominium corporation.
