A status certificate is a set of documents that provide details regarding the financial and legal circumstances of both the condominium building and the particular condominium unit you are interested in purchasing.
The status certificate would indicate if the current unit owner is in default of paying the monthly common expenses if an increase in the common expenses has been declared by the condominium board, and the amount in the reserve fund for the corporation.
Any additional legal issues that may affect the condominium will also be included in the status certificate. For example, the certificate should state whether there are any judgments against the corporation and if the condominium corporation is a party to any litigation already underway. If legal action has not been commenced, the status certificate may be silent on this matter.
Always make sure to have the status certificate of any condominium you are interested in purchasing reviewed by a lawyer. If the status certificate is not available before submitting an offer, be sure to make the offer conditionally on the review of the certificate.