When you purchase a strata property, you own your individual strata lot and share ownership of common property and assets with the other owners.
Depending on the development, that shared property might include the building's roof, exterior walls, elevators, hallways, landscaping, underground parking, roads or recreational facilities.
A strata corporation is responsible for managing and maintaining common property and shared assets, subject to the Strata Property Act, the strata plan and the applicable bylaws.
Strata properties come in several forms, including:
- Condominiums: Apartment-style homes within a shared building.
- Townhomes: Attached or sometimes detached homes that may share roofs, exterior components, landscaping or other infrastructure.
- Duplexes, triplexes and small multi-unit developments: Smaller buildings containing two or more homes, which may be individually owned as strata lots.
- Bare land stratas: Developments where individual owners typically own their buildings and share responsibility for infrastructure such as private roads, utilities or other common assets.
An important distinction: Not every duplex, townhouse or multi-unit development is a strata. Some have different ownership arrangements. It's the legal structure of the property, not how it looks, that determines whether strata legislation applies.
Even a two-unit strata must comply with BC's strata legislation, although some requirements differ depending on the number of strata lots.
Every strata is different. That's why it's important to understand exactly what you're purchasing and which maintenance responsibilities belong to you versus the strata corporation.
One of the first questions buyers ask is, "How much are the strata fees?"
It's an important question, but the amount alone doesn't tell you whether a strata is well managed.
Monthly strata fees generally contribute toward two things:
- The operating fund: Covers regular expenses such as cleaning, landscaping, utilities, management, insurance and routine maintenance.
- The contingency reserve fund (CRF): Helps pay for less frequent expenses, such as major repairs and replacements.
A building with higher strata fees might include utilities, extensive amenities or substantial contributions toward future repairs.
A building with unusually low fees might be well run and inexpensive to maintain. Or it might be saving less than it needs for upcoming expenses.
The important question isn't simply whether the fees are low.
It's whether the fees are appropriate for the building's needs.
When reviewing a strata's finances, I look at the current budget, fee history, operating expenses and reserve contributions together.
Think of the contingency reserve fund, or CRF, as the strata corporation's savings account for expenses that don't occur every year.
These might include replacing a roof, repairing building exteriors, upgrading elevators or repaving common roads.
Under current BC rules, strata corporations must generally contribute at least 10% of their annual operating fund budget to their contingency reserve fund.
But here's something buyers should understand: Meeting the legal minimum doesn't necessarily mean a strata is saving enough.
Imagine two buildings, each with $500,000 in its CRF.
One has recently replaced its roof and has relatively few major expenses on the horizon.
The other is planning a $2 million building-envelope project.
The fund balance is identical, but the financial outlook is very different.
That's why I never evaluate a CRF balance in isolation. It needs to be considered alongside the building's age, condition, upcoming projects and long-term financial planning.
But what happens when a strata needs to complete a major project and doesn't have enough money in its reserves? That's where special levies may come in.
A special levy is an additional amount collected from owners to pay for a specific expense.
For example, if a strata needs to replace its roof and doesn't have enough money available in its contingency reserve fund, owners may approve a special levy to fund the project.
But here's something important to understand: Different strata corporations have different approaches to funding major expenses, and neither approach is inherently better.
Some stratas prefer to maintain somewhat higher monthly fees, contributing more money to their CRF over time so they can pay for major projects using accumulated savings.
Others prefer to keep monthly strata fees lower, contributing less to their CRF and relying more heavily on special levies when significant projects arise.
Both approaches can work, provided the strata meets its legal funding requirements and has a realistic plan for maintaining the property.
The difference often comes down to how owners prefer to manage their expenses. Some value the predictability of higher monthly payments, while others prefer lower ongoing costs and are comfortable making larger contributions when needed.
This is why low strata fees aren't necessarily a good thing, and a special levy isn't automatically a bad thing.
When reviewing a strata, I want to understand:
- How does the strata typically fund major projects?
- Does its CRF balance align with its anticipated expenses?
- Have any special levies already been approved?
- Are additional levies being discussed?
- What projects would the money pay for?
- What portion of the cost would apply to your strata lot?
Special levies generally require approval by a three-quarter vote at an annual or special general meeting, although certain methods of allocating costs require unanimous approval.
When a property is sold, BC law generally makes the seller responsible to the strata corporation for payments due before ownership transfers, and the buyer responsible for payments due on or after that date. The purchase contract may also establish how the buyer and seller will account for those costs between themselves.
That's why it's important to understand not just whether a levy has been approved, but also when payments are due and how they're addressed in your contract.
I once worked with buyers who fell in love with an older townhouse at the lower end of their budget.
But when we reviewed the strata documents, we discovered that the building was facing some significant renovations, and the contingency reserve fund was substantially underfunded.
That meant owners could potentially face substantial special levies to help pay for the work.
My clients started thinking about what that would mean for them. Not just the potential expense, but also the disruption of living through major renovations.
Ultimately, they made a different decision.
Rather than keeping money set aside for potential special levies, they chose to put more of their budget toward the purchase of a brand-new townhouse that came with new home warranty coverage.
The purchase price was higher, but they preferred the financial planning and lifestyle trade-offs of the newer home.
Sometimes the least expensive property isn't the best financial or lifestyle fit.
And that's why understanding a strata's financial position and upcoming maintenance needs is so important before you buy.
Ultimately, what matters isn't just how much you're paying each month, but whether the strata has a sound financial strategy and whether that approach works for your budget.
One of the most important parts of buying a strata property is reviewing its records.
These documents help reveal what's happening behind the scenes, financially, physically and operationally.
Here are some of the key documents I recommend reviewing.
Provides important information about the strata lot and corporation, including monthly fees, approved special levies with future payments owing, the CRF balance, certain financial concerns and other required disclosures.
The Form B must also include prescribed attachments, such as the current budget, strata rules (if any) and the most recent depreciation report (if any). Additional documents may be required depending on the circumstances.
Show where money is being spent, how much is being saved and whether the strata's financial planning appears consistent with its needs.
Forecasts major common-property repairs and replacements, estimated costs and long-term funding scenarios.
Reveal the issues council is addressing, such as maintenance concerns, repairs, complaints, insurance claims and proposed projects.
Show major decisions, approved budgets, owner votes and special levy resolutions.
Explain restrictions and requirements concerning pets, renovations, parking, rentals, noise and other aspects of strata living.
Helps buyers understand the strata corporation's coverage, deductibles and potential insurance considerations.
May provide more detailed assessments of particular building systems or concerns.
Whenever possible, I recommend reviewing at least two years of strata council and general meeting minutes, along with the current financial information and relevant professional reports.
A single document rarely tells the whole story.
Want a closer look at what each document reveals?
It forecasts major repairs and replacements over a 30-year period, including estimated timing, costs and funding scenarios.
Think roofs, windows, siding, plumbing, elevators and other significant building components.
Under current BC rules, strata corporations with five or more strata lots are generally required to obtain a depreciation report at least once every five years. Strata corporations with fewer than five lots are exempt from this requirement, and newly established strata corporations have specific deadlines for obtaining their first report.
The law also established transitional deadlines for existing strata corporations, so it's worth confirming that the report you're reviewing meets the applicable requirements.
However, a depreciation report is not a guarantee of when something will fail or when work will be completed.
It's a planning tool based on estimates and assumptions.
For example, a report might estimate that windows will need replacing within five years. But a subsequent engineering assessment may find they're performing adequately and recommend monitoring, targeted repairs or replacement further into the future.
That doesn't automatically mean either report is wrong. They may have different scopes, purposes or information available.
What matters is understanding the evidence behind the recommendations and how the strata is responding.
When reviewing a depreciation report, I pay particular attention to major projects anticipated in the next five to ten years, the associated costs and whether the strata's financial planning reflects those expenses.
A depreciation report isn't the only professional assessment a strata may have.
Some buildings also commission building condition assessments, commonly referred to as BECAs, or specialized engineering reports addressing specific concerns.
These assessments may examine issues such as:
- Building-envelope performance and water ingress
- Roofing and exterior cladding
- Windows and doors
- Plumbing systems
- Structural or concrete deterioration
- Drainage and waterproofing
The reports may recommend immediate repairs, ongoing monitoring, further investigation or longer-term replacement planning.
It's important to understand the scope of each report. A building-envelope assessment, for example, doesn't necessarily address every major system in the building.
And when two reports appear to recommend different timelines, I want to understand why before drawing conclusions.
Has more detailed testing been completed? Was the newer report based on a closer inspection? Is the strata addressing individual problems as they arise?
These are important questions that can help put the information into context.
Here's something I tell buyers: There is no such thing as a maintenance-free building.
Roofs eventually need replacing. Plumbing ages. Windows wear out. Elevators require upgrades.
What matters is how the strata responds.
Some of the signs I look for in a well-managed strata include:
- Regular maintenance and inspections
- Timely attention to reported problems
- Reasonable budgeting and reserve contributions
- Professional assessments when needed
- Transparent communication with owners
- A realistic plan for major repairs
- Evidence that the strata follows through on decisions
On the other hand, I pay close attention when the same problems appear repeatedly in meeting minutes without a clear resolution.
Ongoing water ingress, postponed repairs, recurring insurance claims or major expenses without an apparent funding strategy may warrant further investigation.
The goal isn't to find a building with no problems.
It's to understand the problems, how they're being managed and what they could mean for you as a future owner.
One of the biggest surprises for people buying their first strata property is discovering just how much a strata corporation can influence what they do in their own home.
You might own your condo or townhouse, but that doesn't mean you can necessarily do whatever you want with it.
Strata bylaws can govern everything from pets and parking to noise, renovations and certain activities inside your home. Strata rules can also govern the use of common property and common assets.
And here's why I think reviewing them is so important: Nobody knows better than you how you want to live your life.
As your Realtor, I can review the bylaws and flag potential concerns, but you're the person who knows whether those restrictions will work for your family and lifestyle.
Some bylaws are fairly straightforward. Others can be surprisingly specific.
I recently helped clients purchase a strata property where the bylaws required cats to be on leashes whenever they were on common property.
Fortunately, my clients had an indoor cat, so the restriction wasn't an issue.
But imagine buying that home with a cat that likes to wander outside, only to discover the restriction after moving in!
And pet bylaws can go well beyond leashes. Stratas may restrict the number, size or types of pets permitted, subject to applicable legal protections.
I once worked with a family of five purchasing a townhouse that was marketed as having four bedrooms.
At the showing, we noticed that the fourth room didn't have a built-in closet and functioned more like a den. But the layout still worked for my clients, so they were happy to move forward.
The problem? During our strata document review, I discovered that the strata classified the home as a three-bedroom-plus-den layout and had a bylaw limiting occupancy of that floor plan to four people.
My clients were a family of five.
We identified the restriction before the purchase became firm and obtained written confirmation from the strata addressing my clients' situation.
However, buyers shouldn't assume that exceptions will always be granted. Occupancy restrictions can also raise legal and human rights questions about whether a particular bylaw is enforceable, which may require legal advice.
The lesson? You can't rely solely on a property's marketing information. The strata documents may tell a different story.
Depending on the bylaws, even something as seemingly simple as replacing your flooring may require written strata approval.
Other renovations, such as changing plumbing, moving walls or altering electrical systems, may involve additional approvals and professional assessments.
I once had a buyer fall in love with a beautifully renovated strata property. But during our due diligence, we discovered that the sellers had removed a wall between the kitchen and dining room without obtaining strata approval or building permits.
We couldn't establish whether the wall had been load-bearing, and there was no engineering documentation confirming that the alteration was structurally appropriate.
Despite loving the home, my buyer ultimately decided to walk away.
The concern wasn't simply that the renovation had been completed without approval. It was the uncertainty surrounding the work, the potential consequences for a future owner and the financial risk my client could be taking on.
A beautiful renovation isn't necessarily a properly authorized renovation.
And importantly, bylaws can change over time.
Strata bylaws must comply with BC law, including human rights legislation, but buyers shouldn't assume that every restriction they encounter is unenforceable.
My advice is simple: Read the bylaws and rules yourself, and think about how you actually live.
Do you have pets? Are you planning renovations? Do you have a large family? Do you work from home? Are there activities or routines that are particularly important to you?
A strata property can be a wonderful place to live, but only if its rules are compatible with the lifestyle you want.
It's much easier to identify a restriction before purchasing than to discover afterward that your new home doesn't work the way you'd hoped.
When you buy a strata property, there are generally two types of insurance to understand: the strata corporation's insurance and your own homeowner's insurance.
The strata corporation's insurance generally covers the building, common property and common assets, along with certain original fixtures within individual strata lots, as required by BC law.
Your personal strata homeowner's insurance is designed to cover things the strata's policy doesn't, such as your personal belongings, personal liability, improvements you've made to your home and additional living expenses following an insured loss.
But there's one particularly important detail buyers often overlook: the strata corporation's insurance deductible.
Depending on the policy and type of claim, these deductibles can be substantial. In certain circumstances, a strata corporation may be able to recover its insurance deductible from an owner who is responsible for the loss, even if that owner wasn't negligent.
That's why I always recommend taking a copy of the strata corporation's insurance summary to your insurance provider before purchasing.
Ask them to review the strata's coverage and deductibles, and make sure your own policy includes appropriate strata deductible coverage, along with the other protections you need.
Don't assume your personal insurance automatically covers the full amount of every strata deductible. Coverage limits, exclusions and available options vary.
The goal is to make sure there aren't any significant gaps between the strata corporation's insurance and your own.
Not every concern is a deal-breaker. But some findings deserve more investigation.
Here are examples:
- Repeated water ingress: Are the underlying causes understood and being addressed?
- Major repairs repeatedly deferred: Why have they been postponed, and has a professional supported that decision?
- Large upcoming expenses: Is there a realistic funding plan?
- Repeated operating deficits: Are fees and budgets being adjusted appropriately?
- Frequent insurance claims: Is there a recurring issue, and how might it affect coverage or costs?
- Missing or outdated reports: Is the strata meeting its obligations and obtaining the information it needs?
- Significant disputes or litigation: What is the potential financial or practical impact?
The key is context.
A building replacing its roof isn't necessarily a bad investment. In fact, completing major maintenance can be a positive sign.
But purchasing without understanding who will pay for that roof, when the work is planned and how decisions are being made can create unpleasant surprises.
Before removing subjects on a strata property, I want buyers to have clear answers to these questions:
- Have we reviewed the current Form B and required attachments?
- Have we reviewed recent council and general meeting minutes?
- Do we understand the current operating budget and financial position?
- How much is in the CRF, and what upcoming expenses might draw on it?
- Are there any approved or proposed special levies?
- What major repairs are forecast in the depreciation report?
- Are there engineering reports or unresolved maintenance concerns?
- Have I personally read the bylaws and rules and confirmed they work for my lifestyle, household and any planned renovations?
- Has my insurance provider reviewed the strata corporation's insurance summary and deductibles and confirmed appropriate coverage for my needs?
- Do we understand any potential costs or risks requiring further professional advice?
A thorough review won't eliminate every future surprise, but it can help you make a much more informed decision.
If you've never reviewed a set of strata documents before, you're not alone. Most buyers open that first package of meeting minutes, financial statements and depreciation reports and have absolutely no idea what they're looking at.
And why would they? These documents can run hundreds of pages and contain financial information, technical assessments and terminology that most people rarely encounter.
The good news? You won't have to figure it all out on your own.
When you're buying a strata property with me, I'll help you work through the documents so you understand what they mean and what they could mean for you as a future owner.
I'll walk you through the important information, explain unfamiliar terms and highlight anything I think deserves your attention.
That might mean identifying a major repair being discussed in the meeting minutes, explaining how the contingency reserve fund compares with upcoming expenses, or flagging concerns in an engineering report that warrant further investigation.
And just as importantly, I'll help you put those findings into context.
Every building needs maintenance, and the existence of a problem doesn't automatically mean you should walk away. Sometimes the more important questions are whether the strata understands the issue, has a plan to address it and has considered how to pay for it.
If something concerns me, I'll tell you, explain why, and help you understand what questions we should be asking. And when an issue requires specialized legal, engineering, insurance or financial advice, I'll help you identify when it's time to bring in the appropriate professional.
My goal isn't to make the decision for you. It's to make sure you have the information, explanations and support you need to make that decision confidently.
You deserve to understand what you're buying, not just sign off on a stack of documents you don't understand.
