Strata properties are a popular choice for many homebuyers in British Columbia, especially in urban centres like Vancouver, Burnaby, and Surrey. With shared amenities, lower maintenance responsibilities, and often more affordable entry points than detached homes, they offer significant advantages. However, purchasing a strata property involves unique considerations that freehold homebuyers may not encounter. One of the most critical steps in this process is reviewing the strata documents.
In BC, strata documents provide crucial insights into the financial health, governance, rules, and future obligations of the strata corporation. Here’s a breakdown of what you need to examine closely before finalizing your purchase.
1. Strata Council Meeting Minutes (Typically Past 12-24 Months)
These minutes are a window into the day-to-day issues and operations of the strata. Look for:
- Recurring complaints or conflicts between residents
- Planned or deferred maintenance
- Discussion of special levies or major repairs
- Evidence of good communication and transparency
If the minutes reveal ongoing disputes, unresolved issues, or unclear decisions, it may be a red flag.
2. Depreciation Report
Required every three years (unless waived by a 3/4 vote), the depreciation report outlines:
- The projected lifespan of major building components
- Estimated repair/replacement costs
- A funding plan for future maintenance
This report helps you determine if the strata is financially prepared for upcoming expenses or if costly special assessments are likely.
3. Strata Bylaws and Rules
These govern how residents can use their units and common property. Key considerations include:
- Pet restrictions (number, size, or type of animals)
- Rental restrictions (number of units, duration, or waiting periods)
- Renovation guidelines (approval processes and limitations)
- Use of amenities (quiet hours, booking systems, etc.)
Make sure the bylaws align with your lifestyle and future plans.
4. Form B: Information Certificate
Form B is a standardized summary of the unit and strata’s status. It includes:
- Monthly strata fees
- Any money owing by the current owner
- Details on parking/storage allocations
- Insurance coverage
- Bylaw amendments not yet filed
- Upcoming special levies
Always ensure the Form B is recent (no older than 30 days) to reflect the most current information.
5. Financial Statements and Budget
Review the strata’s current and previous financial statements to assess:
- Health of the contingency reserve fund (CRF)
- Surplus/deficit in operating funds
- Spending patterns (e.g., excessive legal or repair costs)
A low CRF with high projected expenses may suggest future special assessments, which could significantly impact your costs.
6. Insurance Certificate
Confirm:
- Building replacement value
- Deductibles (especially for water damage and earthquakes)
- Unit owner responsibilities
A trend in BC is increasing deductibles, which may require you to get additional condo insurance (including loss assessment coverage).
7. Engineering Reports or Legal Correspondence
If available, review any reports on structural or environmental concerns. Legal letters or lawsuits involving the strata (especially with developers or contractors) can pose risks.
Thoroughly reviewing strata documents is one of the best ways to protect your investment. It’s also wise to consult with your realtor and consider hiring a strata document review service or real estate lawyer for added peace of mind.
While strata living can offer a fantastic lifestyle and community experience, each strata corporation is different. Doing your due diligence ensures you won’t be surprised by unexpected rules, fees, or repairs after moving in.
Thinking of buying a strata property in BC? Connect with a knowledgeable local real estate agent who can guide you through the process with confidence.
