How to Sell a Condo in Ontario: Steps and Status Certificate

If you want to know how to sell a condo in Ontario, start by separating two kinds of work. One is the ordinary work of selling any home: preparing the unit, pricing it, handling offers and closing. The other is specific to condominiums, where the corporation holds records about your building that a buyer will want to read before they commit. This page is general information, not legal advice. A condo sale involves contracts and title, so use an Ontario real estate lawyer for anything specific to your unit.

The steps to sell a condo in Ontario

Most condo sales follow the same order. Details vary by building and by agreement, so treat this as a map and not a timetable.

• Speak to a real estate lawyer before you list, and ask about any lien, mortgage payout and what the sale will require of you.
• Collect your condo documents and ask who will order the status certificate.
• Check your common expenses, arrears and any special assessment.
• Prepare the unit and decide how you will share information with buyers.
• List with an agent, review offers and sign an agreement.
• Deal with conditions, then close with the lawyers acting for you and for the buyer.

Each step is covered below. If you are also deciding whether to buy before you sell, the buy first or sell first guide explains the trade-offs.

Start with a real estate lawyer

The Law Society of Ontario says transfers of title generally must be signed for completeness by two different lawyers: one for the transferor and one for the transferee. There are exceptions, but the practical result is that a lawyer will act for you at closing. Speaking to one early is more useful than waiting for an offer, because the lawyer can tell you what they will need from you and the condo corporation.

The Law Society Referral Service offers a free consultation of up to 30 minutes with a lawyer or licensed paralegal, and you can start at findlegalhelp.ca. Bring your mortgage details, your most recent common expense statement and a list of any parking or locker spaces that come with the unit.

The status certificate: what it is and who orders it

A status certificate is the condo corporation's own summary of its finances and rules. The Condominium Authority of Ontario (CAO) says that anyone can request one, that the corporation can charge up to $100 including all applicable taxes, and that the corporation must provide it within 10 days. It is the main document a buyer and their lawyer review before a condo purchase becomes firm.

The CAO says a status certificate can include:

• the corporation's declaration, by-laws and rules;
• its budget and financial statements;
• reserve fund details and common expense statements;
• whether you are in arrears and any special assessments;
• contact details for directors and officers;
• insurance certificates;
• details of any legal judgments or ongoing litigation.

Who orders it in your sale is a question for your lawyer and your agent. The CAO page explains who can request one and what it costs but does not assign the task to a seller or buyer, so ask. Ordering early matters because the corporation has up to 10 days to deliver it.

Accuracy matters on both sides. The CAO points to a court decision in which an owner avoided a special assessment because the status certificate had not clearly disclosed it. Read your certificate before the buyer does, and if something looks wrong or missing, raise it with the property manager and your lawyer straight away.

Condo documents to gather before you list

Buyers ask about the same handful of things, and having answers ready avoids delays. Gather what you have and note where you are missing something.

• Your latest common expense statement and the contact for the property manager.
• The declaration, by-laws and rules, which the CAO says set out restrictions on smoking, short-term rentals and pets.
• The current budget and financial statements, and any notice of reserve fund study results or funding plan sent to owners.
• Documents showing which parking space and locker are yours and how they are held.
• If the unit is leased, the lease details. The CAO says owners must notify the corporation if they lease their unit.

Do not rely on memory for the rules. If a buyer asks whether pets or rentals are allowed, the governing documents answer the question, not the building's reputation. Pointing to the document protects you from giving an answer that turns out to be wrong.

Condo fees, common expenses and arrears

Condo fees, which the CAO also calls common expense or maintenance fees, are what owners pay to maintain the common elements such as the parking garage, hallways, lobby, recreation facilities and elevators, and to build the reserve fund. Each unit's share is set in the declaration. The CAO says unpaid fees can lead to a lien against the unit and that the corporation can pursue legal action to collect.

For a seller this means two things. First, make sure fees are current before you list, because arrears show up in the status certificate and a lien affects the buyer. Second, be ready to explain what your fee covers. The CAO page does not say whether fees include utilities, so check your building's budget or ask the property manager before you describe the fee to a buyer. Building insurance is the corporation's job, and the CAO says owners need their own policy for their belongings and upgrades.

Buyers also look at the fee as part of the cost of owning the unit, which is a reason to know your own budget. The buying a condo in Ontario guide shows what a buyer is checking, and reading it from their side helps you prepare.

Special assessments and the reserve fund

A special assessment is an extra one-time charge on top of regular fees. The CAO says it is usually used to cover a shortfall caused by a significant event, that a board can levy one without asking owners for permission unless the governing documents restrict this, and that owners pay it using the same percentages as common expenses. Unpaid special assessments can lead to a lien, as with regular fees.

The reserve fund is separate. The CAO describes it as an account kept solely for major repairs and replacements of common elements. Corporations must complete studies on a schedule: a Class 1 study in the first year after the declaration is registered, then Class 2 and Class 3 studies alternating at least every three years. After a study the board proposes a funding plan and must notify owners within 15 days of proposing it.

If you have received one of those notices or know of a planned assessment, put it in front of your agent early. A surprise in the status certificate after an offer is accepted can put the deal at risk, so being open at the start is safer.

Disclosure and handling offers

The condo rules sit alongside the normal seller rules. For hidden defects and what you must say about the unit, read seller disclosure in Ontario. RECO's guidance also says that when more than one written offer is presented, the seller's agent must tell every person who made a written offer the number of competing offers, and cannot share the content of offers without the seller's written direction. Your agent explains how this works in your sale.

Offers are normally subject to conditions. For a condo, a status certificate review is a common one, which is another reason to have the certificate ready. Ask your lawyer and agent how long the buyer has and what happens if the certificate raises a concern.

What it costs to sell a condo in Ontario

Ontario's land transfer tax is paid by the buyer, not the seller. Your costs of selling are different and depend on your agreement, your mortgage and your lawyer's fees. This site does not publish prices, so ask each professional for a written estimate before you sign anything. The land transfer tax guide explains the buyer's side and the net proceeds calculator helps you set out your own figures. The estimating net proceeds guide lists the items to include, and the costs and money page gathers the rest.

On tax, a gain on a home that was your principal residence is generally not taxed federally, but you must report the sale and the designation on your return. The Canada Revenue Agency says the exemption is allowed only if you report it, using Schedule 3 and Form T2091(IND). Only one home per family unit can be designated for a given year. Read capital gains and selling your principal residence and confirm your situation with an accountant, especially if the unit was ever rented.

Closing the sale

Closing is handled by lawyers. Yours will check the buyer's documents, confirm your mortgage payout and arrange the transfer. The lawyer will also confirm the closing adjustments for items such as property tax and condo fees, which are the sort of figures to leave to them rather than estimate yourself. Closing dates and conditions come from your signed agreement, so ask your lawyer what you need to do on each date.

Before closing day, ask your property manager whether the building has moving rules or booking requirements, and read the rules in your governing documents. For the practical side of emptying a unit, see clearing out your home and moving day.

If you are choosing between a condo and another type of home as your next step, the condo, townhouse or house guide compares them, and where to downsize covers the regions of Ontario. For other groups and checklists, see resources. When you are ready, contact us.