Quick links
- Dial-A-Law: Buying a condominium
- Dial-A-Law: Owning a condominium
- BC Financial Services Authority (BCFSA): Buying a home
- BCFSA: Understanding pre-sale purchases
- BC Laws: Real Estate Development Marketing Act (REDMA)
- Land Title Office: BC Land Title and Survey Authority
Is strata living for me?
When you buy a strata lot such as a condo, townhouse, or a bare land strata lot, you are choosing community living. Decisions of the BC Supreme Court (BCSC) over the years have shed light on the nature of this arrangement.
- Within a strata corporation “you are all in it together”. King Day Holdings Ltd., 2003 BCSC 1085
- “Stratas are small communities, with all the benefits and the potential problems that go with living in close collaboration with former strangers.” Shaw Cablesystems, 2007 BCSC 1711
You have to understand that you don’t have full control over your property. Your home is not your castle. All owners must accept the decisions made by the strata council and the owners at general meetings. You might be unhappy when monthly strata fees increase. You might not like a new bylaw. You might not agree with which contractor is hired to fix the roof or how much it costs.
Strata living also means being prepared to volunteer. Whether the strata has 2 units or 200, the law requires the strata to have a strata council. It’s not reasonable to always expect others to volunteer. Be prepared to step up and do your part. Serving as a council member is a great way to understand management and operations of a strata including maintenance, finances, and the laws that all stratas must comply with. A well-run strata corporation improves quality of life and maintains property values for all owners.
Top 10 tips when purchasing a strata lot
See the quick links above for resources to help you through the process to purchase a home. When purchasing a strata lot, here are some tips you may find helpful:
- Don’t rely on the information in the real estate listing. Get a copy of the bylaws and the strata plan from the Land Title Office. This is the only way to be sure you have the correct information.
- Bylaws are not the same in every strata. Are there bylaws restricting smoking, pets, or short-term accommodations? Is there a 55+ age restriction bylaw?
- Check the strata plan to see what you would actually own. For example, you might be surprised to learn that there is no locker or parking stall for the condo owner’s exclusive use or that the yard behind a townhouse is common property that any owner can use.
- Order a Form B “Information Certificate” then check the minutes of annual general meetings and council meetings to confirm the information.
- Read the depreciation report to see what major repairs and renewals are recommended now and in the coming years.
- Request copies of minutes from council meetings and annual and special general meetings for the last two years. Read them carefully and cross-reference the information with the Form B and depreciation report.
- Request the most recent financial reports. Does the strata have enough money in its contingency reserve fund (CRF) to pay for major repairs and renewals?
- Check the summary of insurance. How high are the insurance deductibles? Are water leaks or insurance claims mentioned in the minutes?
- Does the strata have an electrical planning report? This information could be helpful if you want to request permission to install a heat pump or EV charging station.
- Realtors are not lawyers. While they may answer your questions with the best intentions, some do not have the knowledge to answer questions about bylaws, legal designations, or the Strata Property Act.
Risks when buying a pre-sale strata lot
It’s a common practice in British Columbia for developers to sell strata lots such as condominiums and townhouses before they are built. These arrangements are called pre-sales. Because it hasn’t been built yet, you’re not actually buying the unit. You’re signing a contract for the right to receive a finished unit at a point in the future, and you are agreeing to pay for it at that time. Under the Real Estate Development Marketing Act the developer must file a “disclosure statement” for developments of 5 or more strata lots (including bare land subdivisions) and receive permission from the Superintendent of Real Estate before they are permitted to begin marketing the development. The disclosure statement includes details about the strata the developer intends to build including draft versions of the strata plan with boundaries of the strata lots, schedules of unit entitlement and voting rights, interim budget, strata fees and more. However, the actual documents later filed at the Land Title Office may be different. Under the Strata Property Act, the strata corporation must rely only on the documents filed at the Land Title Office, not the developer’s disclosure statement.
There are significant risks to the buyer in these arrangements. As a purchaser, you should read the disclosure statement carefully and have a lawyer go over the contract and explain details such as:
- What happens when there is a delay in construction or the project doesn’t get completed
- The consequences when interest rates go up or you have a change in employment and you no longer qualify for a mortgage to pay for the unit when it’s ready
- That the finished unit may be different that what was marketed since the contract allows the developer to change the size, layout and finishes
See the article Strata Pre-Sale Risks and Buyer Rights and Real Estate Development Purchaser Rights to learn more.
A disclosure statement is not required for any strata development of less than 5 strata lots. However the developer is still required to comply with the Strata Property Act including collecting strata fees under an interim budget, making the developer’s contribution to the CRF, and calling the first annual general meeting. (SPA s. 12, 13, 16)
Member-only resources
Log in to your account to access the following resources:
- Purchasing documents from the Land Title Office
- Coming soon: Quiz – Is strata living for me?
- Coming soon: Before You Buy check list
