The quick answer
An estoppel certificate is the condominium corporation's written statement of the contributions payable on a unit, how often, any arrears and interest owing. The corporation must issue it within 10 days of a written request.
Part of the Calgary Condo Buying Guide, our complete guide to this topic.
An estoppel certificate is a short statement from the condominium corporation about one unit: the contributions payable, how often, whether any are in arrears and what interest is owing. The Condominium Property Act requires the corporation to issue it within 10 days of a written request and the certificate is conclusive proof of those amounts in favour of whoever asked. This post is general information drawn from the Act and the Regulation and a lawyer confirms how it applies to a particular sale.
What the certificate confirms
Section 43.2 of the Act lists the content. The corporation certifies four things for the unit:
| Item | What it tells the reader |
|---|---|
| Contributions payable | The condominium fee and any other contribution owed by the unit owner |
| How often they are payable | Monthly, quarterly or another interval |
| Arrears | Any amount already overdue |
| Interest owing | Interest charged on that overdue amount |
The word conclusive carries weight. In favour of the person who requested the certificate, the figures stated in it are treated as correct. The certificate speaks to the unit’s account with the corporation. It does not describe the building, the budget or the plan for repairs.
Who asks for it and when
Section 43.2 allows an owner, a purchaser or a mortgagee to request it or their solicitor on their behalf. The request must be in writing. In a sale, a lawyer for the seller, the buyer or the lender may make the request, since each wants the corporation’s own figures on what the unit owes. Your lawyer decides when to ask and what to ask for.
The timing is set by the Act: the corporation has 10 days from the written request. That is a short window for a corporation run by volunteers or a property manager, so a request made the week before possession can leave no margin. If you are the seller, your lawyer may request it early. If you are the buyer, ask your lawyer when it was requested and whether it has arrived.
What it costs
The Condominium Property Regulation, section 20.53(1)(a), says the fee for an estoppel certificate must not exceed $200. The same section sets limits on other documents. The fee for the information statement is capped at $100 and other documents are $10 each or $0.25 a page for hard copy beyond 40 pages. Who pays the fee in a given sale depends on the purchase contract and the parties, so confirm it with your lawyer.
How it differs from the reserve fund study
Buyers sometimes treat the estoppel certificate and the reserve fund study as the same kind of paper. They answer different questions.
- The estoppel certificate looks at one unit’s account: what is owed now.
- The reserve fund study and plan look at the building: what major repairs are coming and how the corporation intends to fund them.
Section 38 of the Act requires the corporation to maintain a reserve fund reasonably sufficient for major repairs and replacement. Alberta.ca says a study must be completed at least every five years. A buyer reviews that material through the information a corporation provides on written request under section 44, which Regulation section 20.52 lists. That list includes the budget, annual financial statements, bylaws, minutes, insurance certificates, reserve fund plans and reports and professional reports. An estoppel certificate does not replace any of it. A unit with no arrears can sit in a building with a large repair ahead and a building with a well-funded plan can have a unit owner who is behind on fees.
For a full look at the study itself, read the condo buying guide, which sets out the document review a buyer does before waiving conditions.
What the certificate does not cover
Read the certificate for what it states and nothing more. It lists the items in the table above and does not describe the building. It is not a bylaw review, an insurance review or a building inspection. If the board has passed a special levy resolution under section 39.1, that resolution and the minutes are in the documents a buyer can request separately. If a figure on the certificate looks wrong, the buyer’s lawyer raises it with the corporation before closing, in writing.
What a buyer and a seller can do
- Buyers: when you make an offer on a condominium, ask your lawyer to request the certificate and the section 44 documents promptly.
- Sellers: pay your fees on time and keep your payment records. If the corporation shows an arrear you disagree with, resolve it before the certificate is requested.
- Both: ask your lawyer who pays the certificate fee and when it will be received.
- Both: keep a copy of the certificate with your closing documents, since it records the account as of its date.
A short example of how the figures are used
This is an illustration with made up numbers, to show the mechanics and not a real unit. Suppose the monthly condominium fee is $450 and the corporation’s certificate shows no arrears. The lawyers can then adjust the fee for the month of possession on that basis. If instead the certificate showed one missed month and a small interest charge, the lawyers would deal with that amount at closing so that it comes out of the seller’s proceeds and is not left with the buyer. How the adjustment is handled in a real sale depends on the purchase contract and is a lawyer’s task.
Questions to ask your lawyer
- When will the certificate be requested and from whom?
- Who pays the fee for it under our contract?
- Does the corporation also owe me the section 44 documents and have we asked for them?
- If the certificate shows an arrear, how will it be handled at closing?
- Is any special levy resolution in the documents and who pays it?
Where this sits in a Calgary condo purchase
The certificate is one document among many in a condominium purchase. The condo buying guide covers the rest and the buyers page describes how Derek Bryer works with a purchaser. Derek is a licensed associate with eXp Realty and holds the Certified Condo Specialist designation from the Calgary Real Estate Board. He is not a lawyer, so he points a buyer to the right documents and the lawyer reviews them. If you are selling a unit, the sellers page explains the steps and you can contact Derek on 587-325-2992.
Common questions
What is an estoppel certificate in Alberta?
It is a certificate from the condominium corporation stating the contributions payable for a unit, how often they are payable, any arrears and any interest owing. Under section 43.2 of the Condominium Property Act it is conclusive proof of those amounts in favour of the person who requested it.
Who can request one?
An owner, a purchaser or a mortgagee can request it in writing and so can their solicitor.
How long does the corporation have to issue it?
The Act gives the corporation 10 days after the written request.
What does it cost?
The Condominium Property Regulation sets a fee that must not exceed $200.
Does it tell me whether the reserve fund is healthy?
No. It speaks to what is owed on one unit. The reserve fund plan and study are separate documents a buyer can ask for under section 44 of the Act.
Keep exploring
- Condos, Townhomes and Villas The building's finances matter as much as the unit.
- Calgary house prices CREB benchmark prices for the city by property type.
- Calgary mortgage calculator Monthly payment, smallest down payment allowed and the qualifying rate.
Sources
- Alberta King's Printer: Condominium Property Act
- Alberta King's Printer: Condominium Property Regulation
- Government of Alberta: Reserve funds
Figures and rules were checked against these sources on the date this post was published or last updated.
Not advice. This post is general information only. It is not legal, tax, mortgage or investment advice. Rules and figures change, so confirm the details for your own situation with a qualified professional before acting.
Market data. Any prices quoted are general information for the period stated. They are not an appraisal or an opinion of value for any specific property.