Short answer
Unpaid common expenses can create a condominium lien and closing problem. The status certificate and lawyers should confirm the unit account, lien, legal costs and payout. A buyer should not rely on the seller’s verbal assurance that the fees will be cleared.
The buyer’s real concern
A condominium purchase includes the unit and a financial relationship with the corporation. The client needs to know whether the documents, monthly cost, future repairs, rules and lender acceptance support the way they intend to live, rent or eventually sell.
A practical Ontario example
Illustration only: A seller falls behind during a long closing. The original status certificate was clean, but the corporation later registers a lien. The lawyers must address payout and discharge before clear title can transfer, and the buyer’s lender may require updated confirmation.
What to review now
Order the status certificate at the appropriate time, confirm whether an update is needed for a long closing and review title. Sellers should contact the corporation and lawyer early rather than allowing arrears and collection costs to grow.
Do not review the unit in isolation
The unit may look excellent while the corporation faces expensive repairs, litigation, insurance problems or a funding shortfall. The reverse is also possible: a well-run corporation can still have a unit-specific problem. Review both levels before removing conditions.
Questions Rajiv would ask
- Is this a resale or newly registered condominium?
- Will you occupy it, rent it or use it part-time?
- What do current fees include, and can your budget absorb an increase?
- Has the lawyer reviewed the current status package?
- Has the intended lender accepted the condominium?
- Which document or deadline remains unresolved?
Practical options
- Pay and discharge the lien from sale proceeds through the lawyer.
- Negotiate a documented payment arrangement where the corporation agrees.
- Update closing adjustments and lender conditions.
- Delay or refuse closing only on the buyer lawyer’s advice under the agreement.
How financing fits
A strong borrower can still face a property decline. A lenders, insurers and alternative lenders review condominium risks differently, including litigation, insurance, marketability, commercial concentration and building condition. A MIC or private lender may consider a short-term solution when equity and exit are strong, but it should not be used to hide a property problem the buyer has not understood.
Who should answer each question?
- Condo lawyer: status certificate, title, documents, assessment and legal exposure.
- Realtor: comparable sales, building history, negotiation and offer protection.
- Inspector: observable unit condition and accessible systems.
- Insurance professional: unit-owner coverage and deductible exposure.
- Mortgage broker: lender acceptance, qualification, payment and backup routes.
Facts, lender policy and assumptions
Verified public guidance: CAO explains that owners must pay common expenses and that a condo corporation may register a lien for unpaid amounts. Legal rights, priority and discharge should be handled by the lawyers.
Lender policy: property acceptance and mortgage treatment vary by lender. Legal advice: the buyer’s lawyer interprets the documents and agreement. Assumption: past fees, repairs and resale performance do not guarantee future results.
Pressure-test the purchase
Model a higher condo fee, a special assessment, an insurance increase, delayed repair and a slower resale. If one ordinary condo expense makes the household budget unworkable, reduce the price range or choose a building with a more comfortable cost profile.
Documents to gather
- Current status certificate and attachments
- Declaration, bylaws and rules
- Budget, financial statements and reserve-fund study
- Insurance certificate and standard-unit definition
- Assessment, litigation or major-project notices
- Agreement, listing and parking or locker details
Related AskRajiv guidance
Continue with condo status certificate condition offer, mortgage funds not ready closing day extension options.
Discuss the condo before the financing deadline
Use Rajiv’s direct mortgage strategy contact form. Include the building, unit, price, deadline and document concern so the lender review starts with the property issue.
Need a condo professional?
Use Rajiv’s Professional Referral Concierge for a relevant introduction based on the location, property and deadline.
Source and review
Read the primary source. Source checked 2026-09-03. Reviewed by Rajiv Verma, Mortgage Broker on 2026-09-03. Educational information only; not legal, insurance, appraisal, real-estate or mortgage approval advice.