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Dec 18, 2009 | Article  Michael D. Pascu

Who Gets to Keep the Fee for Issuing Status Certificates?

Pursuant to the Condominium Act, 1998 and the regulations passed thereto, it is the corporation which is entitled to collect the $100 statutory fee from the person who requests a status certificate. The property manager, who typically prepares the status certificate, is not entitled to this fee unless the management agreement so provides.

Management agreements typically provide that the property manager is entitled to the $100 statutory fee as compensation for the property manager's work in preparing the status certificate. However, since the statutory fee may not adequately compensate the property manager for the work that must be performed in order to properly prepare the status certificates (for example, the manager may be required to inspect the unit prior to issuing the status certificate), the management agreement may also provide that the property manager is entitled to an additional fee, payable by the corporation. 
 
Even if the management agreement does not provide that the property manager is entitled to such additional fee, the property manager may nonetheless be entitled to same. For example,  if the management agreement clearly outlines the work that the property manager is required to perform with respect to the preparation of status certificates, and if the board of directors requires the property manager to perform work that is not specified in the management agreement (such as inspecting the units) then the property manager may be entitled to take the position that this work is an extra to the management agreement which he or she is not obligated to perform unless additional compensation is paid.
 
A review of the management agreement should therefore indicate whether the property manager is entitled to the statutory fee, and further, whether her or she is entitled to additional compensation from the corporation for the work related to the preparation of status certificates. Without such provisions in place, the corporation is entitled to keep the statutory fee.

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Michael Pascu

Michael D. Pascu Associate

B.A., LL.B., ACCI

mpascu@finedeo.com
905.760.1800 x243
905.760.0050

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