Strata Documents to Review Before Buying a Condo in BC

Buying a strata home means buying into a shared building and a shared budget. The unit may look perfect while the strata has a leaking envelope, a thin reserve fund or an unpopular new bylaw. The documents are where those facts show up.

If you are in the subject-removal period, time is short. This article sets out what to read, roughly what to look for in each document, and how to ask for what is missing.

This article covers the law of British Columbia.

Start with the Form B and its attachments

Ask for a Form B first. The strata must give it within one week of a request by an owner, a purchaser or a person authorized by either. A buyer with an agreement to buy can ask even while subjects remain. It discloses monthly fees, amounts owing, approved special levies, expected budget overruns, the contingency reserve fund balance, unfiled bylaw amendments, work orders, parking and locker allocations, and an insurance summary.

The rules, current budget and most recent depreciation report must be attached. If the strata has sections, ask both the strata corporation and the relevant section.

Minutes, bylaws and financial statements

Owners are entitled to minutes of council, AGM and SGM meetings, bylaws and rules, financial statements, and repair and maintenance information. The strata must prepare and keep these, along with budgets, correspondence and bank records.

Strictly, the right to request records belongs to an owner or a person the owner authorizes in writing, and the strata must comply within 2 weeks, or one week for bylaws and rules. Inspecting records is free, and copies are capped at 25 cents per page. As a buyer, the seller or the listing side can often help you get copies, so ask early.

Bylaws that can change your plans

Check that the bylaws match your intended use. Since November 24, 2022, a strata cannot have a residential rental-restriction bylaw, and existing ones are invalid. Bylaws limiting or banning short-term rentals are still allowed with a 3/4 vote. Local governments may also limit short-term rentals to principal residences, so an investor who does not live in the unit may be barred whatever the bylaw says.

For pets, Standard Bylaw 3(4) allows one dog or one cat, a reasonable number of fish or small caged mammals, and up to two caged birds, but a strata can pass its own pet bylaw. Also check for unfiled amendments shown on the Form B, and the Land Title Office general index shows filed bylaw amendments, court orders and special resolutions.

Depreciation report and insurance

A depreciation report estimates repair and replacement costs for major items, and the most recent one must be attached to the Form B given to buyers. Stratas with five or more lots must obtain one every five years, though stratas with fewer than 5 lots do not need one. Look at the contingency reserve fund balance against the projected costs.

For insurance, the strata must carry property insurance on a full replacement value basis and liability insurance of at least $2,000,000. Its policy covers common property and the building, but not your personal contents, personal liability or living expenses after a loss. Deductibles on strata policies can range from $100,000 to $750,000 or more, and a deductible is a common expense paid through strata fees, but the strata can sue an owner responsible for the loss to recover it. Ask your own insurer what you need under section 161.

What to do next

• Request the Form B immediately and note the one-week timeline.
• Ask for minutes, financial statements and bylaws and rules, and read at least the last two years.
• Check the depreciation report date and the reserve balance against it.
• Look for approved or discussed special levies and who pays them if the sale closes mid-levy.
• Confirm insurance coverage and deductible with the strata, and get a quote for your own policy.
• If this is a new development, confirm the developer records and new home warranty coverage are in place.
• Send your findings to your lawyer before you remove subjects.

Frequently asked questions