FREQUENTLY ASKED QUESTIONS

Will the Harmonized Sales Tax (HST) apply to my strata fees?
What is harmonization? There are two taxes levied on the sale of goods and services in BC; a 7% Provincial Sales Tax (PST) and a 5% federal sales tax called the Goods and Services Tax (GST). The total sales tax is 12% on goods and service taxed by both levels of government. Effective July 1, 2010 the two taxes will be combined into one Harmonized Sales Tax (HST) of 12%.
How will this affect strata owners? The HST will not be collected on the strata fees, but strata fees will increase slightly because strata managers and contractors will have to collect the harmonized tax on their services. It will also impact the Contingency Reserve Fund because large maintenance items that are paid for from the CRF such as painting and roofing will now pay the harmonized tax package.
How much the sales tax will increase on any particular item or service depends on how it was taxed before harmonization. The sales tax will jump from 5% to 12% for items that taxed only by GST but not the PST.

How often does a strata council have to meet?
The Strata Property Act does not set a frequency for meetings of strata councils. Standard Bylaw #12 allows a council member to be replaced by the remaining council members if the council member is unable to act for a period of 2 or months. This seems to imply monthly meetings but many strata councils do not meet every month.
The strata council must set the agenda and draw up a proposed budget for the AGM. After the AGM the newly elected council must meet to elect officers and assign exclusive use of common property such as parking and lockers for the ensuing year.
 

Must a strata corporation have bylaws?
All strata corporations have bylaws even if they have never adopted bylaws. The Standard Bylaws which begin on page 117 of the Strata Property Act are the default bylaws of all strata corporations from duplexes and bare land stratas to high rise apartment blocks. All Standard Bylaws apply except where a different bylaw that covers the same subject matter has been registered with the Land Title Office
For example a bylaw prohibiting dogs when the Strata Property went into effect would still apply although the Standard Bylaws allow “one dog or one cat”. An AGM could adopt a new bylaw allowing dogs or cats.

We have only 3 units in our Strata, does the Strata Property Act apply to us?
Yes, The Strata Property Act applies to all Strata Properties in BC. There are no exemptions. If your strata is small, you may be used to handling things in a less formal manner than some other, larger stratas. But for legal reasons you must follow the SPA.
 

Does the Strata Agent (manager) have to attend all council meetings?
No. There is no reason not to have a meeting simply because your strata agent cannot attend. The council decides how frequently to meet, agrees on what action to take for all matters that arise, and directs the property manager accordingly. Remember the property manager works for you, not the other way around.

Are special assessments shared equally by all owners?
No. Special assessments are assessed accordingly to “unit entitlement” which is a formula registered with the strata plan. Apartment-style or townhouse stratas are unlikely to have identical unit entitlements. Your strata can vote to change the unit entitlement, but it requires a unanimous vote of all owners.

If next year’s budget goes up by 5%, can we just add 5% to every one's strata fees?
No. If you simply raise everyone’s monthly assessments by 5%, then over time the amount for each unit will be out of proportion to their unit entitlement. It might only be out by a few cents this year, but the error will accumulate in subsequent years resulting some owners paying several dollars more or less than their correct share.
Fees should be recalculated after each AGM on the basis of unit entitlement and the new budget in accordance with the Strata Property Act.
 

Am I allowed to prune or remove trees in front of my town house?
Probably not. Trees are usually common property, and must be maintained by the Strata Corporation. Owners may not make alterations to common property without written permission of the council. Check the strata plan to find out whether the front yard is your property or common property. Write to the council for permission to prune the tree.
 

Can the council cut down a tree without a approval at a general meeting?
Trees on common property must be maintained by the Strata Corporation. The council may not remove trees on Common Property without a 3/4 vote of all owners present and voting at a general meeting unless the tree is in danger of toppling over and damaging strata property or endangering life (Strata Property Act, s71).
 

Are strata corporations required to use the standard contract for strata management services as insisted on by many management companies?
The requirements for management contracts are set forth in the Real Estate Services Act (RESA) Rules. The standard contract includes many provisions that are not required by the RESA, some of which place strata corporations at a distinct disadvantage in relation to their management company. Strata corporations should always seek legal advice from a lawyer not connected with the management company before signing management contracts.
 

What information must the strata corporation collect from, and provide to owners and how is collecting and releasing information affected by the Personal Information and Privacy Act?
The Office of the Information and Privacy Commissioner has released guidelines for strata corporations that are available elsewhere on the VISOA website under the title of Privacy Guidelines for Strata Corporations and Strata Agents. The Privacy Act cannot be used as an excuse for not collecting or releasing information required by Section 35 and 36 of the Strata Property Act. However, strata councils should consult the Guidelines before gathering or releasing information beyond what is required by s35 and s36 of the Act. Bylaws can require additional information but the Privacy Guideline should be consulted before adopting such bylaws.