What should buyers look for in a status certificate for a Markham POTL or condo townhome?A status certificate is a package from the condo corporation that shows the townhome’s fees, any arrears, the budget, the reserve fund, insurance, legal actions and the rules. It applies to condo townhomes and to many freehold townhomes on a common element condominium, often called POTLs. Corporations must offer it for no more than $100, delivered within 10 days. Look closely at fee increases, the reserve fund, any special assessments, what the fee covers and the rules on renting, pets and exterior changes. Have your lawyer review it before you firm up.
Townhome buyers often focus on the house and skim the condo documents. For POTL and condo townhomes, those documents can matter as much as the inspection.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, makes offers on these homes conditional on a lawyer’s review of the status certificate whenever possible.
POTL vs. condo townhome
| Type | You own | The corporation looks after |
|---|---|---|
| Freehold townhome on a common element condo (POTL) | The house and its lot | Shared roads, walkways, landscaping or services |
| Condo townhome | Your unit; the land and exterior are often common elements | Often roofs, exteriors, grounds and snow |
See the Markham townhouse buyer’s guide for the ownership types.
What is in a status certificate
- Monthly fees and whether the unit has arrears.
- Any planned fee increases or special assessments.
- The current budget and reserve fund balance.
- The most recent reserve fund study summary.
- Insurance coverage.
- Legal actions involving the corporation.
- The declaration, by-laws and rules.
Fee and timing rules
The Condominium Authority of Ontario says corporations must offer a status certificate for up to $100, including taxes, delivered within 10 days. Some offer faster delivery for a higher fee. Build enough time into a conditional offer for delivery and review.
Buying a POTL or condo townhome?
Michael John Lau can help you request and review the status certificate before you firm up.
Book a buyer consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Red flags
| What you see | Why it matters |
|---|---|
| Low reserve fund for the age of the community | Higher future fees or special assessments |
| Recent or planned special assessment | A lump-sum cost on top of fees |
| Large fee increase in the budget | Affects your monthly cost and qualifying |
| Lawsuits involving the corporation | Possible costs for owners |
| Strict rules on renting, pets or exterior changes | Limits on how you use the home |
What the fee covers
For POTLs, fees often cover only shared roads, snow clearing and some landscaping. Roofs, windows and driveways are usually the owner’s responsibility. For condo townhomes, the corporation may cover more of the exterior. Read the declaration carefully, because it decides who pays for what.
How fees affect your budget
Lenders include 50% of condo fees in their debt service calculations, so higher fees can reduce how much you qualify for. Add the full fee to your own monthly budget. For a full cost breakdown, see freehold townhouse vs. condo costs.
Before you firm up
- Request the status certificate as soon as your offer is accepted.
- Have your lawyer review it within the condition period.
- Ask about any upcoming projects, such as road repaving.
- Compare fees with similar communities nearby.
Ultimately, the decision is yours. The goal is to make sure you have all the information before you commit.
The status certificate shows the community behind your front door. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Do POTL townhomes have a status certificate?
Many do, because the common element condominium is a condo corporation. Ask your REALTOR or lawyer to request it.
How much does a status certificate cost in Ontario?
Corporations must offer it for up to $100, including taxes, delivered within 10 days.
What is a red flag in a status certificate?
A low reserve fund, a special assessment, a large fee increase or legal actions involving the corporation.
What does a POTL fee cover?
Often shared roads, snow clearing and some landscaping. Check the declaration for details.
Who pays for the roof in a POTL townhome?
Usually the owner, but the declaration decides. Condo townhomes may differ.
Should my offer be conditional on the status certificate?
Where possible, yes, so your lawyer can review it before you commit.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. Status certificate fee and delivery rules are from the Condominium Authority of Ontario. The 50% condo fee rule is from CMHC. This is general information, not legal advice; have your lawyer review any status certificate. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
