FREQUENTLY ASKED QUESTIONS
As an owner, am I entitled to examine our strata’s bank statements and cancelled cheques?
Yes, Section 35(2) of the Strata Property Act requires the strata corporation to retain bank statements, cancelled cheques, and certificates of deposit. Section 36(1) of the Act requires the strata corporation to make those records available for inspection by owners, and provide copies to an owner on request. Section 36 also requires that certain other persons have access to those records. While the Strata Property Act does not allow individual owners to be charged for access to strata documents under Section 36, a management company may charge the strata corporation for the cost if this is provided in the service contract. It may not charge the owner.
In spite of Section 36, bank statements may not be available to owners when the strata corporation has a manager because some management companies pay bills from a pooled chequing account containing funds from many stratas. The management companies then provide each strata corporation with a breakdown of the funds showing what has been paid on their behalf. This makes it difficult for strata councils to catch mistakes in bill payments by their manager.
Will the Harmonized Sales Tax (HST) apply to my strata fees?
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 were taxed only by GST but not the PST.
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.
Do the privacy Guidelines for Strata Corporations and Strata Agents prohibit the release of information as required by Sections 35 and 36 of the Strata Property Act?
No, they do not.
Guideline 8 states: If it is required to or authorized by law, a strata corporation can disclose personal information without consent. For example, section 36 of the SPA states that on receiving a request the strata corporation must make the records referred to in section 35 of SPA available for inspection by, and provide copies to, an owner or other person authorized in writing by an owner or tenant to inspect and obtain copies of records for their benefits. However, in certain instances PIPA will require that the entire record not be released, for example complaint letters
Guideline 18 states that the following are some guidelines to consider when handling a request for a complaint letter. A strata corporation should have a policy in place that clearly states how the strata corporation will handle complaint letters.
Section 35(2)(k) of SPA requires the strata corporation to retain copies of correspondence sent or received by the strata corporation and strata council. Similarly, section 36 of SPA states that a strata corporation must make the records and documents referred to in section 35 of SPA available for inspection by an owner (or tenant who, under section 147 or 148 of SPA, has been assigned a landlord’s right to inspect and obtain copies of records and documents), or any other person authorized in writing by an owner.
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.
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.
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?
Not unless it is in the management contract. But 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?
Only in bareland stratas. Special assessments are assessed according 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 a percentage of the budget, arithmetic rounding errors will accumulate over the years. The errors may be only a few cents each year, but in a few years some owners will be paying several dollars more or less than their correct amount based on unit entitlement.
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 Rules, 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.
How is the requirement for a depreciation report enforced?
There are no legal penalties, but Section 59 of the Strata Property Act now requires that a Depreciation Report (if there is one) be attached to the Information Certificate (Form B) which is a document that must be provided to an owner, a purchaser or a person authorized by an owner or purchaser.
If there is no depreciation report attached to Form B, a prospective purchaser will know immediately that the strata corporation is not complying with the Strata Property Act and is likely not providing funds for maintaining the common property. This could have considerable implications regarding the sale price of a unit. Any prudent purchaser might avoid purchasing a unit in such a strata and a conscientious real estate agent would warn a client of the potential risks involved.
The lack of a Depreciation Report would also warn financial institutions and insurance companies that the strata corporation is not planning for long term maintenance hence a mortgage or an insurance policy could be affected because of the potentially higher risk.
How soon must our strata have a depreciation report completed?
That depends:
If you have less than five units, you do not have to complete a depreciation report
If you have no Depreciation Report, you must have one done by 13 December 2013.
If you already have a proper Depreciation Report completed, no matter who did it, (e.g.) by 22 June 2011, you must have a new one done by a Qualified Person by 22 June 2014 (i.e. in three years).
If you already had a proper Depreciation Report completed, no matter who did it, (e.g.) on 20 May 2012, you must you must have a new one done by a Qualified Person by 20 May 2015 (i.e. again, in three years.
Your strata can exempt itself from completing a Depreciation Report by a 3/4 vote within every 18 month period. The most practical way to do this is to approve the exemption at each annual meeting.
As indicated above, there may be consequences to stratas that exempt themselves from Depreciation Reports as buyers, financial institutions and insurance companies begin to look for them.