Strata Tip of the Week - John Cooper

Real Estate Education:

Strata Tip of the Week - Not All Depreciation Reports Are Created Equal

When buying a strata-titled property, reviewing the depreciation report isn’t just a good idea, it’s essential. This document provides critical insights into the condition of the strata corporation's common property and assets, as well as projected maintenance, repair, and replacement costs over the next 30 years. However, not all depreciation reports are created equal. Evaluating the quality of a report is key to identifying shortcomings and avoiding potential pitfalls. 1. New Depreciation Report Requirements As of July 1, 2024, strata corporations with five or more strata lots must obtain a depreciation report every five years. The option to waive this with a 3/4 vote has been removed. Transitional deadlines mean many strata corporations are still catching up or in the process of implementing these requirements. From a buyer’s perspective, it’s important to obtain and review the latest depreciation report available. Starting July 1, 2025, these reports must also be prepared by qualified professionals from one of six designated professions, which include engineers, architects, applied science technologists, accredited appraisers, certified reserve planners or quantity surveyors. 2. Why Quality Matters Even with updated standards, report quality can vary. Some common issues we’ve seen include: Underestimated Costs: Reports may downplay future repair or replacement expenses, leaving buyers unprepared for actual costs. Overestimated Lifespans: Unrealistic projections about component durability can result in unexpected costs sooner than anticipated. Omitted Components: Reports that exclude components create gaps in understanding total future capital costs. Non-Compliance: Older reports might not meet the new legislative standards, making them less reliable for decision-making. 3. What This Means for Buyers and Realtors Realtors play a vital role in helping their clients navigate depreciation reports. It’s not enough to simply confirm that a report exists, its quality must also be assessed. A well-prepared report allows buyers to accurately assess the strata’s financial health, while a poorly prepared one can give a false sense of security and could mask serious financial risks. 4. Tips for Evaluating a Depreciation Report Here are some questions to guide your evaluation: Does the report cover all major building components? Do cost estimates and timelines seem realistic? Was the report prepared by a qualified professional? Is the report current and compliant with the latest legislation? A well-prepared depreciation report is more than a formality; it’s a roadmap to understanding a strata’s financial health and planning for future expenses. Realtors and buyers who ensure these reports are comprehensive, accurate, and prepared by qualified professionals can make informed decisions with greater confidence, safeguarding their investments and avoiding costly surprises. If a report appears incomplete or raises concerns, consulting a qualified professional is recommended. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Reviewing Special Levies for Compliance

When purchasing a strata-titled property, ensuring that special levy resolutions meet legal requirements is critical to protecting buyers from unexpected financial risks. The Strata Property Act (SPA) outlines specific requirements for how strata corporations must: Notify Owners: Inform owners of meetings where special levy resolutions are being proposed. Provide Resolution Details: Provide detailed information on the resolutions to be voted on. Here are some things to watch for: 1. Notice Requirements To be valid, special levy resolutions require proper notice of the general meeting, as outlined in Section 45 of the Strata Property Act. The meeting notice must include: A description of the matters to be voted on, including the wording of any resolution requiring a 3/4, 80%, or unanimous vote. The date, time, and, if applicable, location of the meeting. Instructions for attending by electronic means, if applicable. 2. Timing Requirements The strata corporation must meet specific timing requirements for issuing notice of annual or special general meetings: Two Weeks’ Notice: The SPA requires strata corporations to provide at least 2 weeks’ written notice of the meeting. Excluding First and Last Days: The Interpretation Act clarifies that when “at least” is used, the first and last days are not counted, requiring 16 days between the date the notice is sent and the meeting date. Non-Personal Delivery: If the notice is not left with the person entitled to receive the notice, the SPA deems it received 4 days after being mailed or delivered. In Practice: To meet all these requirements, in most circumstances, a general meeting notice must be mailed or delivered at least 20 days before the meeting date. Failure to meet notice requirements may invalidate resolutions approved at that meeting, which could pose significant risks to buyers. 3. Resolution Required Information Every special levy resolution must include: The purpose of the levy. The total amount to be raised. The method for determining each strata lot’s share. The specific amount owed by each strata lot. Payment deadlines and instalment schedules. If any of these elements are missing or incorrect, the resolution may be invalid, which could pose significant risks to buyers. For example, in Stark v. The Owners, Strata Plan VR 2362, the Civil Resolutions Tribunal invalidated a special levy resolution due to, among other things, improper notice, highlighting the importance of compliance. 4. Why This Matters for Buyers Improper notice or incomplete levy resolutions may result in: Invalid Levies: Complications may arise if the levy cannot be enforced. Future Special Levies - Invalid levies may require additional meetings or votes to rectify errors, potentially leading to further costs for buyers. Unexpected Delays - Disputed or invalid levies can delay essential projects (e.g., repairs or maintenance), affecting the property’s condition and usability. Potential Disputes: Procedural errors may result in disputes with the strata corporation, causing stress and uncertainty for buyers. 5. Protecting Buyers’ Interests To safeguard buyers, it’s essential to: Review the Full Package: Obtain and review the general meeting notice package, not just the meeting minutes. Verify Compliance: Ensure the resolution meets all requirements under the SPA and other relevant legislation, such as the Interpretation Act. Seek Legal Advice: Advise buyers to seek legal advice if any irregularities are found. Final Thoughts Special levies can significantly affect a buyer’s financial obligations. By confirming that notice and resolution requirements are met, you can help buyers avoid potential pitfalls and safeguard their investment. If you have questions about reviewing strata documents, we’re always happy to help! That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Don’t Forget About Holiday Bylaws

While heavily disputed at the North Pole, yet fully endorsed by the Grinch, holiday bylaws exist in many strata corporations. All kidding aside, it’s worthwhile reminding folks that some strata corporations may have bylaws restricting what residents can or cannot do for the holidays. Make sure to check your strata’s bylaws, so you don’t end up on the strata council’s naughty list! Some of the more common holiday bylaws we’ve seen include: Restrictions on live or fresh-cut Christmas trees due to fire safety concerns. Bylaws about hanging decorations or lighting from unit doors, balconies, or windows. Guidelines on when and for how long residents can display holiday decorations or lighting. When in doubt, make sure to check your strata’s bylaws for any restrictions. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - The Strata’s Insurance Policy is About to Expire

When evaluating a strata corporation, it's important to make sure the documents you receive are up to date. As always, you can refer to our Strata Documents Checklist for a comprehensive list of documents we recommend you obtain and review when purchasing a strata-titled property. If the strata’s current insurance policy is set to expire within one month or less, we recommend taking the following steps: 1. Obtain the Necessary Documents Current Insurance Policy: Obtain and review the strata’s current insurance policy. New Insurance Policy: Request a copy of the new insurance policy, if it’s available. Insurance Quotes: If a new policy hasn’t been finalized, ask for any quotes the strata has received for potential coverage. 2. Key Insights The new insurance policy or insurance quotes can help consumers identify: Premium Increases: Any notable upcoming hikes in the strata’s insurance premium. Deductible Changes: Significant upcoming changes in the strata’s deductible amounts. Coverage Updates: Adjustments to the coverage the strata has or plans to secure. 3. Why This Matters Understanding upcoming or potential changes in the strata’s insurance policy is critical for consumers. It allows them to: Anticipate risks they might face as strata property owners. Evaluate their need for additional insurance coverage to manage those risks. Plan for any extra expenses that could arise from purchasing supplementary coverage. Lastly, speak with their insurance broker. Reviewing the strata’s coverage and exploring their options for additional insurance can provide valuable peace of mind before making a purchase decision. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - What to Look Out for When It Comes to Special Levies

When purchasing a strata-titled property, it’s essential to consider potential costs beyond the purchase price. These additional expenses can significantly impact the affordability of the property for buyers. One key consideration is special levies, which can sometimes arise unexpectedly and lead to substantial financial obligations for strata owners. Here's what you need to know: 1. What Are Special Levies? Special levies are additional payments imposed on strata lot owners to cover expenses that are not funded by the strata corporation’s: Annual operating budget, or Contingency reserve fund (CRF) These levies are typically used to pay for significant repairs, upgrades, or unforeseen expenses that the strata corporation needs to address. When reviewing strata documents, it’s crucial to look for any indication of approved or potential special levies that could affect the buyer's financial responsibilities. 2. Identifying Past, Present or Future Special Levies A. Approved Special Levies Not Yet Collected Check whether any special levies have already been approved, but remain unpaid by the current owners. Ensure the contract of purchase and sale clearly states that the sellers are responsible for paying any approved but unpaid special levies before the completion date. This protects the buyer from unexpected financial obligations. B. Upcoming Special Levy Resolutions Review whether the strata has issued notice of a general meeting to vote on a special levy resolution that has not yet been decided. Clarify in the contract of purchase and sale who will be responsible for paying the special levy, if it is approved. The contract should also specify what happens if the resolution is defeated. C. Potential Future Special Levies Investigate whether the strata has expressed plans to propose a special levy resolution at a future general meeting, even if formal notice hasn’t been issued yet. Discuss these potential future levies with your clients to ensure they understand the financial implications. Buyers can also consider negotiating with the sellers to adjust the purchase price to account for the likelihood of these additional costs. 3. Why This Matters By proactively identifying approved or potential special levies, you can help your clients: Make well-informed purchase decisions. Negotiate better terms with sellers to account for additional costs. Avoid unexpected financial obligations after purchasing the property. Understanding special levies is just one piece of the puzzle when reviewing strata documents, but it’s a critical step in protecting your clients’ interests. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Why It’s Important to Obtain a Current Version of the Form B: Information Certificate

1. Obtain a Current Version of the Form B As per the Strata Property Act, buyers are entitled to receive a current and complete Form B: Information Certificate. This document, issued by the strata corporation or the strata manager on behalf of the corporation, includes: A. Important details about the overall strata corporation, and B. Specific information relevant to the individual strata lot the Form B pertains to. When providing a Form B to a potential buyer or real estate licensee, strata corporations, and by extension their strata managers, must ensure they use the most up-to-date version of the Form B available. However, we continually find that many strata corporations or their strata managers are still using outdated or incomplete versions of the Form B. This can be problematic, as missing or outdated information may impact a buyer's purchase decision. 2. What’s New with the Form B? Several updates have been made to the Form B in recent years, including: A summary of the strata’s insurance coverage must now be attached to the Form B. Rental disclosure statements are no longer required with the Form B. The number of units rented in the strata corporation no longer needs to be included. Strata corporations must confirm if they have obtained an electrical planning report; if available, a copy must be attached. If any of this information or documentation is missing from the Form B you received, we recommend requesting a new Form B that includes all required information. 3. How current does the Form B need to be? Check out our previous email titled “Make Sure the Form B: Information Certificate is Current”, to learn why we recommend the Form B never be older than 1 month. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - What’s “A Lot” When it Comes to Future Special Levies?

When buying any type of real estate, considering future costs beyond the purchase price is essential. For strata-titled properties, special levies can be one of the most significant additional expenses. But what is considered "a lot" when it comes to future special levies? 1. What Is Considered “A Lot”? If you've read our previous email titled “Most Stratas Are Not Saving Enough for the Future (to avoid special levies)”, you’ll know that many BC strata corporations are not setting aside enough funds to cover all future capital expenses. As a result, most buyers should anticipate some special levies in the future. Whether $1,000, $25,000, or even $200,000 in potential special levies is "a lot" depends on individual circumstances. For buyers, knowing the amount of special levies they may face is essential in deciding if a property fits their financial plan and comfort level. 2. Special Levies Don’t Necessarily Indicate a Bad Investment The need for special levies doesn’t necessarily mean a strata corporation is poorly managed or that the property is a poor choice. In British Columbia, strata corporations are required to contribute at least 10% of their annual operating budget to the contingency reserve fund (CRF). However, just because a strata is meeting this legal minimum doesn’t guarantee that it will have enough in its CRF to pay for all its future capital expenses. At Condo Clear, we provide buyers with an estimate of the anticipated special levies they are likely to face in the future, empowering them to make more informed decisions. 3. How to Estimate Potential Special Levies While predicting future special levies isn’t an exact science, it can still provide valuable insights for buyers. To calculate the anticipated special levies, one must look at: CRF Balance and Contributions: Start by assessing the current CRF balance and annual contributions. Depreciation Report Estimates: Compare the CRF against anticipated expenses outlined in the strata’s depreciation report. More recent reports tend to offer more reliable estimates. Completed Projects: Factor in any major projects completed since the latest depreciation report, as these may reduce future special levy needs. 4. Key Considerations for Buyers Facing Special Levies a) Factor Special Levies into the Purchase Price - Expected special levies should be factored into the total cost of buying a property, potentially allowing room for negotiation on the purchase price. b) Prepare Financially - Understanding and planning for future special levies helps avoid unexpected financial strain. c) Consider Construction Disruptions - Major repairs can bring prolonged construction noise and inconvenience. Buyers should consider their tolerance for potential disruptions. For strata buyers, understanding the amount of special levies they’re likely to face in the future is an essential step. With these insights, buyers can make confident, informed decisions about their strata-titled investment and ensure they are putting enough funds aside to cover special levies that may arise. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - The Minimum Amount of Strata Council Meetings

1. Are strata corporations required to hold strata council meetings? In British Columbia, the Strata Property Act (SPA) does not explicitly state the amount of meetings that a strata council must hold. In other words, the SPA does not require strata corporations to hold a minimum amount of strata council meetings. That being said, operational requirements of most strata corporations, as well as other provisions in the SPA, the Standard Bylaws (which strata corporations can amend), and other applicable legislation make it difficult and often impractical for strata councils to properly manage a strata corporation without holding strata council meetings. As an example, Sections 13 (1) and 18 (3) of the Standard Bylaws state that: 13 (1) At the first meeting of the council held after each annual general meeting of the strata corporation, the council must elect, from among its members, a president, a vice president, a secretary and a treasurer. 18 (3) The results of all votes at a council meeting must be recorded in the council meeting minutes. 2. So how often should a strata council meet? The amount of strata council meetings that a strata corporation must hold, to operate efficiently and effectively, depends on many factors, including but not limited to: The size of the strata corporation. The complexity of the strata corporation's operations and maintenance requirements. The frequency of issues and decisions that arise within the strata community. The need to address specific matters, such as major repairs, financial matters, bylaw violations, contract reviews and approvals, etc. The existence of any ongoing or special projects that require regular updates and discussions. The need to plan and prepare for annual and special general meetings of the strata corporation. 3. Why are strata council meeting minutes important for buyers? Strata council meeting minutes are essential for buyers, as they provide valuable insights and information about the strata corporation and the community they are considering becoming a part of. Infrequent or non-existent strata council meetings could indicate a lack of active management and involvement in the strata corporation's affairs, which may pose significant risks to buyers, including but not limited to: Delays in addressing issues, deferred maintenance, and disputes due to a lack of action and direction. Buyers left uninformed about finances, repairs, challenges, etc. Neglected upkeep leading to building deterioration and unexpected costs. Difficulty assessing financial health and potential obligations. Unresolved conflicts among owners without proper communication and enforcement. Buyers unaware of looming special levies, leading to sudden financial strain. Quality of management services may suffer without oversight. Complications and delays when updating bylaws or rules, or making other changes within the strata community. As you can see, it is crucial that consumers are made aware of the dangers of buying a unit in a strata corporation that holds infrequent or no strata council meetings. Due diligence, including reviewing meeting minutes and seeking professional advice, is crucial in order for buyers to thoroughly assess the health and viability of the strata community they are considering, before making a purchase. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - The Difference Between Regular and Bare Land Stratas

In British Columbia, land can be subdivided in various ways. When it comes to strata-titled properties, one of the primary distinctions lies between regular strata corporations and bare land strata corporations. Understanding the nuances between the two types of stratas is crucial when purchasing property in BC. This knowledge affects ownership rights, responsibilities, and how common property is managed. 1. What Do All Strata Developments Have in Common? In all strata developments: Strata Lots - Individuals own separate units within the strata development, known as strata lots. Common Property - Owners jointly own and use the common property, which may include components such as infrastructure, amenities, and other shared assets. 2. What is a Regular Strata Corporation? A regular strata corporation involves subdividing one more more buildings into: Privately Owned Units - Individual strata lots, such as apartments, townhouses, etc., and Common Property - Shared components within the strata development, such as roadways, parking facilities, entryways, hallways, mechanical and electrical systems, roofs, windows, doors, and exterior walls. 3. What is a Bare Land Strata Corporation? A bare land strata corporation is characterized by the subdivision of land, not buildings, into separate parts: Privately Owned Land Parcels - Individual strata lots on which owners may build homes or other structures, and Common Property - Shared infrastructure like roads, utilities and recreational spaces. Key Point: The presence of buildings is irrelevant; it's the subdivision of land, rather than buildings, that differentiates a bare land strata from a regular strata. 4. How Can I Tell if This is a Regular or Bare Land Strata? To determine the type of strata corporation, you’ll need to: Obtain a copy of the strata plan. This document is filed with the Land Title Office. Check the heading of the strata plan: If it states "Bare Land Strata Plan", it's a bare land strata. Otherwise, it's likely a regular strata. 5. What are the Main Differences Between a Regular and Bare Land Strata? The main differences lie in the responsibilities owners have regarding repair and maintenance: a) Regular Strata Corporations: Common Property Responsibilities: Many components within the strata corporation are common property. This often includes roadways, walkways, entryways, hallways, parking and storage facilities, amenities like pools or gyms, mechanical and electrical systems, building envelope components such as roofs, windows, doors, exterior walls, and exterior landscaping. Owner Responsibilities: Owners are typically responsible for the interior of their units. b) Bare Land Strata Corporations: Common Property Responsibilities: Common property is usually more limited and typically includes components like roadways and walkways, landscaping outside individual strata lot parcels, and mechanical and electrical infrastructure up to the boundary of each individual bare land strata lot. Owner Responsibilities: Owners are typically responsible for repairing, maintaining, and insuring everything within their strata lot parcel of land. This includes any structures built on the lot (such as houses) and all their components, including mechanical and electrical systems, building envelope components (roofs, walls, windows, doors, etc.), and any landscaping on the individual lot. In short, regular strata owners tend to have more shared maintenance responsibilities, while bare land strata owners take on much more of the maintenance and insurance themselves. That’s it for this week! If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Maximum Strata Fee Increases

1. Is there a maximum by which strata fees can increase from year to year? In British Columbia, the maximum amount that strata fees can be increased is not explicitly regulated by the Strata Property Act (SPA). In other words, the SPA does not set a limit on the percentage or amount by which strata fees can be increased from year to year. Instead, the SPA requires that the owners of a strata corporation approve an annual budget at each annual general meeting (AGM) through a majority vote resolution. The approved budget determines the strata fees for the upcoming year and establishes the spending limits for the strata council during that year. For more information on the formula used to calculate strata fees, you can read our email titled Ensure the Strata Fees are Calculated Correctly. 2. What happens if the owners don’t approve the budget presented at the AGM? If a budget is not approved at the AGM, the strata corporation must put forward a new budget to be voted on at a special general meeting (SGM). The SGM must be held within 30 days of the AGM (or longer if approved by a 3/4 vote at the AGM). 3. So what, ultimately, dictates what the strata fees are going to be? Overall market increases in the costs of goods and services, as well as the strata corporation’s revenues, expenses and long term saving strategy, will ultimately dictate how much a strata corporation will need to increase strata fees (if at all), in order to meet its legal and financial obligations. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Smoking Restrictions in Strata Corporations

Smoking restrictions have been implemented in many different areas of our society, and strata corporations are no exception. More and more stratas are adopting smoking restriction bylaws or rules, and here’s how they’re doing it. 1. Common Property - The most basic restriction is a ban on smoking on common property. This can either be done by adopting an appropriate bylaw or rule. 2. Limited Common Property - Some strata corporations have also chosen to ban smoking on limited common property through their bylaws or rules, which for a lot of condominium buildings means that residents are not allowed to smoke on their balconies or patios. 3. Within a Strata Lot - The most comprehensive restriction includes banning smoking on the entire property, including within a strata lot. It’s important to remember that strata corporations need to approve a bylaw restricting smoking within a strata lot, as only bylaws, not rules, can govern the use of strata lots. It's also important to remember that even if a specific smoking restriction isn't in place, most stratas have nuisance bylaws. These bylaws prohibit actions that cause a nuisance or hazard to others, which can include smoking that impacts neighbouring residents. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Referring Clients to Third-Party Service Providers

In a recent article by the BC Real Estate Association, titled Due Diligence with Third-Party Referrals, lawyer Jude Chow highlights the importance of exercising caution when making third-party referrals. Here are some key takeaways from the article, along with our insights into how these might affect Realtors when it comes to reviewing strata documents. 1. Legal and Regulatory Risk – Referring clients to third-party service providers, while common, carries potential legal liabilities and regulatory risks. Realtors must be diligent when making referrals, ensuring that the professionals they recommend are appropriately licensed and competent. When it comes to reviewing strata documents, the BC Real Estate Council (now the BCFSA) confirmed in a Report from Council in 2008 that any person providing strata document review services in BC must be licensed under the Real Estate Services Act. While some home inspectors and AI-based companies offer strata document reviews, to the best of our knowledge, Condo Clear is still the only company in BC licensed by the BCFSA to provide these services. Additionally, we carry both errors & omissions insurance and third-party liability insurance, ensuring extra protection for you and your clients. 2. Encouraging Independent Expert Advice – Rule 30 (d) of the Real Estate Services Rules requires Realtors to advise clients to seek independent professional advice when matters fall outside their expertise. Neglecting to do so could be considered negligent, especially when specialized advice is necessary. As a Realtor, you wouldn’t typically provide financial planning advice, mortgage advice, or home inspections. Similarly, reviewing and disseminating strata documents can create potential risks if the licensee does not have an adequate understanding or high level of experience with strata corporations and strata documents. When you refer your clients to Condo Clear for a strata document review, you can rest assured that our Review Advisors have direct experience managing strata corporations and have reviewed thousands of strata documents for buyers and Realtors. 3. BCFSA Guidelines – Realtors should follow guidelines from the British Columbia Financial Services Authority (BCFSA), which recommend providing clients with at least three qualified service providers and allowing them to make independent choices. Disclosing any potential conflicts of interest, including financial gain, is essential. Although we’d like to see more qualified companies offering strata document review services, the reality is that this is a new service being offered in BC, with limited service providers. Many Realtors are surprised to hear that condo documents review service providers have been an established practice in other markets, such as Alberta, for many years. At this point in time, if your clients have questions about the strata documents, you can refer them to qualified professionals such as lawyers, engineers, or licensed strata document review services like Condo Clear. 4. Avoiding Promises or Guarantees – Realtors should avoid making promises or guarantees about the outcomes of the referred professional’s work. This helps shield the Realtor from liability and ensures clients understand that responsibility rests with the third-party provider. When advising your clients to seek professional advice on strata documents, you shouldn’t feel obligated to make any promises or guarantees. At Condo Clear, we’re confident that our track record speaks for itself. You can direct your clients to our Google Reviews, to see what others are saying about our services. To Sum it All Up: Referring clients to third-party service providers is a normal part of real estate transactions, but it’s crucial to do so carefully. By following BCFSA guidelines, ensuring transparency, and directing clients to licensed professionals, you can mitigate risks while providing exceptional service. If you’re looking for a trusted partner in strata document reviews, Condo Clear is here to help! That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - The Difference Between Deprecation Reports and Building Envelope Condition Assessment (BECA) Reports

While both Depreciation Reports (also known as Reserve Fund Studies) and Building Envelope Condition Assessment Reports (often abbreviated as “BECA”) can provide valuable information when evaluating a strata corporation, the primary differences between the two lie in their focus and scope of evaluation. Before we review the general differences between the two types of reports, it’s important to note that: A. While strata corporations with 5 or more strata lots are legally required to obtain a new depreciation report every 5 years, there is no legal requirement for stratas to obtain a BECA. B. While a BECA is meant to provide a thorough analysis of the condition of building envelope components, as well as cost estimates for repair and/or replacement of these, a depreciation report is primarily a financial planning tool based on a limited evaluation. In other words, the depreciation report doesn’t usually provide a comprehensive review of the condition of the building, and the estimates are primarily based on the average lifespans of various components. C. Lastly, just because a strata has obtained a BECA, it cannot ignore its legal requirement to obtain a depreciation report. Many strata corporations will nonetheless often obtain BECA reports, in addition to depreciation reports, in order to more thoroughly evaluate the components that make up the building envelope. So, here are some of the general differences between the two types of reports: 1. Depreciation Reports: Are a requirement under the Strata Property Act. Focus on long-term financial planning and sustainability of the strata corporation. Assess the expected lifespan and projected costs of major building components and systems that make up the common property and common assets. Cover a wide range of components, including the building envelope, plumbing, electrical systems, elevators, flooring, building membrane, landscaping and more. Estimate future repair, maintenance, and replacement costs over a 30 year timeframe. Aim to assist the strata corporations in planning for adequate funding through its contingency reserve fund. Must include, among other items, a physical component inventory and evaluation, as well as a financial analysis and forecasting section. 2. Building Envelope Condition Assessment (BECA) Reports: Are most often obtained by strata corporations on an as-needed basis. Specifically focus on evaluating the condition and performance of the building envelope, which is the outer shell of a building that separates the interior and exterior environments. Concentrate on components such as walls, roofs, windows, doors, cladding and waterproofing systems. Identify existing defects, deficiencies, or deterioration that may affect the integrity, energy efficiency and water tightness of the building. Often provide recommendations and cost estimates for repairs, maintenance, or upgrades related to the building envelope. When assisting consumers in evaluating a strata corporation, it’s important to obtain and review copies of both the latest depreciation report and building envelope condition assessment report (BECA), if available. This will enable your buyers to make a more informed decision about their purchase. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - The Importance of Ordering a Copy of the General Index

When purchasing a unit in a strata corporation, having access to all the strata documents is crucial. Missing or incomplete documents can lead to misunderstandings about the property or unexpected headaches down the road. The biggest issue we’ve encountered since starting Condo Clear Services has been missing, incomplete, or outdated documents. Time and time again, strata corporations and management companies neglect to provide the complete set of strata documents. Whether it’s incomplete bylaws or strata plans, a missing schedule of unit entitlement, missing minutes, incomplete financial documents, etc., over 95% of the strata document packages we receive are missing some documents. These gaps can leave buyers with an incomplete picture of the strata’s financial health, legal obligations, or restrictions—potentially leading to costly surprises later. For this reason, we now always recommend that consumers obtain a copy of the General Index from the Land Title and Service Authority (LTSA). From a strata documents review perspective, the General Index allows consumers to verify if the strata has provided the latest: Bylaws and any amendments Strata plan and any amendments Schedule of unit entitlement (sometimes referred to as the Form V) and any amendments Any other resolutions or accompanying documents that are required to be filed in the LTSA The General Index is now part of our Strata Documents Checklist, which is a list of documents we recommend obtaining and reviewing when assisting consumers looking to purchase a strata-titled property. Feel free to use and share this checklist with anyone who might find it useful! That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - The Difference Between Bylaws and Rules

If you’ve seen our Strata Documents Checklist — a list of essential documents we recommend you obtain and review when assisting consumers looking to purchase a strata-titled property — you’ll know that we always advise reviewing both the bylaws and the rules of the strata corporation. While all strata corporations must have bylaws, they are not required to have rules. Additionally, if a strata corporation is sectioned, each section may have its own bylaws and rules. 1. Why Would a Strata Corporation Have Bylaws and Also Have Rules? Bylaws provide the core legal framework for governance, covering significant aspects like the use of strata lots, common property, and strata council operations. They require a higher threshold to change and tend to be more permanent. Rules, on the other hand, address more specific, day-to-day matters such as the use, safety, and condition of the common property and common assets. They are easier to modify and allow the strata to quickly adapt to changing needs without altering the foundational bylaws. 2. What Are the Main Differences Between Bylaws and Rules? A. Governing Scope: Bylaws can regulate the use of both strata lots and common property, while rules only govern the use, safety, and condition of common property and assets. Rules cannot govern the use of strata lots—only bylaws can. B. Filing and Access: Bylaws must be filed with the Land Title Office, making them a formal part of the property’s legal documentation. When writing a subject offer, it’s crucial to request the latest bylaws and any amendments, as filed with the Land Title Office. Rules are not filed with the Land Title Office but should be requested specifically or obtained through a Form B: Information Certificate, which must include the latest rules. C. Penalties for Violations: The Strata Property Regulation dictates the maximum fines a strata corporation can impose for bylaw and rule violations. Bylaws: The maximum fine for contravening a bylaw is up to $200 per occurrence, and fines for continuing contraventions can be imposed every 7 days. However, there’s one exception. For contraventions of a bylaw that restricts the use of a strata lot for vacation or temporary accommodation, the strata corporation can impose a fine of up to $1,000 per occurrence, and this fine can be imposed daily for continuing contraventions. Rules: The maximum fine for breaking a rule is $50 per occurrence, and fines for continuing contraventions can be imposed every 7 days. 3. How Does a Strata Change Its Bylaws and Rules? Bylaws: To amend (create, change, or delete) its bylaws, a strata corporation must hold a general meeting and have the amendments approved by a 3/4 vote of the owners. These changes only become enforceable once filed with the Land Title Office. Rules: Amending (creating, changing, or deleting) rules is more straightforward. The strata council can amend rules through a majority vote at a council meeting. However, any rule amendments must be ratified by a majority vote of the owners at the next general meeting, or they cease to have effect. Why It Matters Understanding the difference between bylaws and rules is crucial for realtors and potential buyers. Bylaws set the foundational governance and long-term restrictions of a strata property, which can significantly impact a buyer’s lifestyle and investment. Rules, while more flexible, regulate daily living aspects like common area use, and can be changed more easily. Being aware of both ensures that buyers are fully informed about the community they are entering, helping them make more confident and informed purchasing decisions. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Alterations Made Within A Strata Lot

When assisting consumers purchasing a strata lot, it's crucial to review any alterations made to the unit. Ensuring that proper processes were followed and all necessary approvals were obtained can save buyers from future headaches. Here are a few key questions to ask regarding alterations made within a strata lot: 1. Approvals: Did previous owners request and receive the necessary approvals from the strata corporation? 2. Agreements: Are there any agreements (such as alteration or indemnity agreements) in place that make the owners responsible for future repairs, replacements, or insurance related to these alterations? 3. Compliance: Was the work carried out according to the terms set out in these agreements? One indication that alterations might have been made without the strata corporation’s approval is if the unit shows signs of upgrades, like new kitchen cabinets or flooring, but the Form B notes that “no agreements exist under which the owner of the strata lot takes responsibility for expenses relating to alterations.” When an owner upgrades an original fixture, strata corporations typically requires them to sign an agreement making them responsible for insuring the fixture and covering all future repairs or replacements. If no agreements exist, yet the unit appears to have had upgrades, there’s a risk that the alterations were made without the strata corporation’s approval. In such cases, the strata may require the unit to be returned to its original condition at the owner’s expense, and the owner could also be subject to fines. To avoid potential issues, it is prudent to request that the sellers obtain retroactive approval for the alterations, prior to the subject removal date. This will help ensure buyers do not run into issues after purchasing the strata lot. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - The Strata's Insurance Policy

The strata insurance market in BC has been difficult to say the least. Many strata corporations have seen premium increases from 20% to 50%, with some high value/high risk stratas seeing increases in the 200% to 400% range. While the narrative around this problem has focused predominantly on premium increases, the lesser mentioned factor is that some strata corporations have also seen their deductible amounts skyrocketing to levels not covered by most personal homeowner insurance policies. For example, if a strata has a $500,000 water damage deductible and an owner can only get $100,000 of coverage, that owner could be on the hook for $400,000 if there is a loss from within their unit. This is a scary reality, so it’s important that consumers are made aware of these figures and advised to seek advice from a qualified insurance broker. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Components Omitted from the Depreciation Report

1. Understanding the Depreciation Report: A depreciation report provides important insights for buyers looking to purchase a unit in a strata corporation. It not only speaks about the current condition of physical components (as long as the report is recent), but also the financial state of the strata corporation. Some of the most important information in a depreciation report can be found in the following two sections: Evaluation of Physical Components: Details about the current state and expected lifespan of the building's major systems and structures. Financial Analysis and Forecasting: Projections of future capital expenses the strata is likely to incur. 2. The Issue of Omitted Components: One issue we often come across when reviewing depreciation reports is omitted components. Often, this occurs at the direction of the strata council, which may ask the report's author to leave out specific items. This practice is problematic for several reasons: Underreporting of Future Expenses: By excluding some components, the report gives an inaccurate picture of future capital expenses. This can make it seem like the strata will have less to spend on future projects than it actually will. Misleading Potential Buyers: An incomplete depreciation report can mislead potential buyers about the true financial obligations they are likely to face. If not caught, this practice can be very misleading. It's therefore crucial to be aware of this issue and scrutinize the depreciation report thoroughly. If you want to learn more about depreciation reports, you can checkout this article titled “The Problem with Depreciation Reports”, written by Condo Clear’s founder and Managing Broker, Ryan Stenquist. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - Double Check the Parking and Storage Information

Parking and storage are often important components of strata living. It’s therefore essential to have an accurate understanding of the rights associated with any parking and storage when assisting consumers purchasing strata-titled properties. If you’ve read our previous email titled “Understanding Parking and Storage Designations”, you’ll know the different ways that parking and storage can be designated within a strata corporation. 1. Where to Find Parking and Storage Information Start by reviewing the Form B - Information Certificate. The strata corporation is required to answer specific questions regarding parking and storage on this form. If the information on the Form B is incomplete, request a new, complete Form B. Strata corporations must provide complete Form Bs and cannot exclude information. 2. Verify the Information Provided on the Form B It’s important to also verify the information included on the Form B. We’ve come across many Form Bs that provide incorrect information. To verify the parking and storage information, review the following documents: Strata Plan filed with the Land Title Office. Amendments to the Strata Plan filed with the Land Title Office, if any. Resolutions which have changed parking and/or storage designations, filed with the Land Title Office, if any. The information on the Form B should match what is noted in these documents. If it doesn’t, follow up with the strata and have them clarify why the information noted on the Form B is not the same. If the parking and/or storage is designated as common property, the strata may have bylaws filed with the Land Title Office which dictate how parking and/or storage is allocated among residents. 3. Parking and Storage Errors We Often Come Across Example #1: Common Property Noted as Limited Common Property (LCP) We’ve reviewed many Form Bs which stated that the parking and/or storage are LCP, but the strata plan showed no LCP parking and/or storage allocated to the strata lot. If you come across this issue, follow up with the strata corporation for clarification. Example #2: LCP of a Group of Strata Lots We’ve also come across many Form Bs which note that the parking and/or storage is LCP, but do not specify that it is LCP for a group of strata lots, rather than the specific strata lot. Unfortunately the questions pertaining to parking and storage on the Form B don’t direct strata corporations to address this specific circumstance. LCP parking and/or storage for a group of strata lots is more akin to common property, where the allocation can be changed or revoked by the strata corporation. Refer to our “Understanding Parking and Storage Designations” email to gain a better understanding of the different types of parking and storage designations. Example #3: Incomplete Information Some Form Bs simply direct readers to review the strata corporation’s bylaws without providing the required information on the form. Strata corporations must answer all the questions on the Form B. While bylaws may provide more details on how the strata corporation allocates parking and/or storage, the Form B must state how parking and storage is designated. To Sum it all Up As we hope is now clear, verifying parking and storage information is critical when dealing with strata-titled properties. Always cross-reference the Form B with the documents filed with the Land Title Office, and seek clarification from the strata corporation if discrepancies exist. By doing so, you can ensure your client receive accurate and reliable information, enhancing their understanding and enabling them to make informed decisions about their purchase. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/
Strata Tip of the Week - New Home Warranties in Strata Corporations

In British Columbia, the Homeowner Protection Act mandates that all newly built homes, (including strata-titled properties) or significantly reconstructed buildings must be covered by third-party new home warranty insurance. This is commonly referred to as the “2-5-10 New Home Warranty”. Basic coverage typically includes: 15 months: Defects in labour and materials 2 years: Building cladding and delivery systems (plumbing, HVAC, etc.) 5 years: Building envelope defects 10 years: Structural defects 1. Why Addressing Warranty Defects is a Positive Sign While hearing that a strata corporation is addressing warranty deficiencies might raise concerns, we typically see this as a positive sign. The reality is that almost no building is built with zero defects. Addressing problems while the warranty coverage is still active shows that the strata is being proactive and committed to resolving construction related issues. If stratas neglect to take advantage of their new home warranties and later discover significant deficiencies, the cost of repairs will likely fall on the owners. 2. Start by Obtaining the Warranty Certificate(s) To determine whether a strata’s warranty coverage is still active, it’s important to request the warranty certificate(s), especially if the building was constructed within the last 10 years. We recommend always requesting and reviewing all warranty certificates, reports, and documents for buildings that are 12 years old or newer. 3. The Importance of Warranty Documentation If you find no information pertaining to the building’s warranty, this may be a concern, as it could indicate that the strata has not taken advantage of its warranty coverage. As part of your due diligence for clients, it's vital to obtain and review the strata corporation’s warranty certificate, and all related warranty documents and reports. This information will provide insight into: The scope of any warranty issues, and The proactive measures taken by the strata to address deficiencies By obtaining and reviewing all warranty-related documentation, consumers will be able to understand the extent of warranty deficiencies the strata may be dealing with and their commitment to addressing these. This will ultimately enable your clients to make more informed decisions about their strata-titled purchase. That’s it for this week. If you have any suggestions for other topics you’d like us to cover, please let us know at info@condoclear.ca. Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice. A little about Condo Clear: They are a fully licensed brokerage under the BCFSA, and carry Errors and Omissions (E&O) insurance. They have been in business since 2017 and have completed over 3,000 strata reviews to date province-wide. Their Review Advisors have firsthand knowledge and experience. They’ve all been practicing strata managers. A little about Condo Clear Services: FAQs: How do Condo Clear’s services work? Pricing: How much do Condo Clear’s services cost? Learn More: https://condoclear.ca/

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