07/03/2018 – Jurisdiction Ontario
Part 61 published on 01/03/2017
Condominium corporation obligated to issue correct status certificate
The condominium corporation had issued a status certificate to the owner, in 2013, when the owner acquired the unit. That 2013 status certificate did not disclose an alleged violation of the Declaration in relation to certain alterations made to the unit.
When the owner went to sell the unit in 2016, the owner demanded that the condominium corporation similarly issue a “clean” status certificate at that time – even though the condominium corporation, by that time, was clearly aware of the violation.
The lower Court agreed with the owner, and ordered that the corporation issue a clean status certificate. The condominium corporation appealed. The Court of Appeal allowed the appeal and ordered that the condominium corporation’s 2016 status certificate should accurately reflect the corporation’s knowledge at that time. However, this didn’t prevent any claim that the owner might have against the corporation based upon the 2013 status certificate. The Court of Appeal said:
The respondent (owner) has a remedy if the condominium corporation negligently issued the clean status certificate to him, to his detriment. He can sue the condominium corporation for any diminution in the value of his unit by reason of any improper disclosure that may have occurred – provided he does so before the limitation expires in November of this year. In this sense, he is entitled to rely on the Certificate issued to him in 2013 and the condominium corporation is bound by it. If there was, in fact, negligence on the part of the condominium corporation it would be determined in such action.