FAQ

Strata managers are really strata agents who work under the direction of the strata council.  The duties of the strata agent are determined by the contract between the strata council and the agent.

Yes, strata agents must be licensed by the Real Estate Council of British Columbia (RECBC).  The RECBC has adopted rules for strata agents which it enforces but does not enforce the Strata Property Act.

Strata developments may be commercial, residential, or a mixture of residential and commercial.  Residential strata developments may be town houses, one or more apartment blocks, bare land subdivided into strata lots or some combination of the three.  The owners of the strata lots comprise the strata corporation.

There is no difference.  BC’s Strata Property Act refers to all such developments as stratas. A strata development consists of individually-owned strata lots, often referred to as units, common property, and common assets.  BC is the only province that uses the term strata in reference to condominiums.

The strata council manages the strata corporation.  Strata agents are often referred to as managers but it is the strata council that has legal responsibility for managing the strata corporation.

No, strata corporations are not required to employ strata agents.  Many strata corporations are “self-managed” as are many larger strata corporations.

A surplus in the operating fund can be used to reduce the total contribution to the Operating Fund which, in effect, is returning it to the owners, transferred to the contingency reserve fund, or carried forward as an operating surplus.  Any other allocation would require a 3/4 vote at a general meeting.
An accumulated operating surpluses can only be spent in accordance with section 98 of the Strata Property Act.

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. 

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.

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.

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).

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.

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.

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.

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.

No, but money can be borrowed from the Contingency Reserve Fund so long as it is paid back by the end of the fiscal year. See SPA regulation 6.3 for details.  A Special General Meeting must be called to authorize an additional assessment to pay expenses for the balance of the year if the Contingency Reserve Fund cannot otherwise be paid back.

The Strata Property Act is “self-enforcing” meaning that the strata corporations themselves must enforce the Act, bylaws, and rules through the levying of fines for offenses or placing liens on strata units that do not pay their assessment.
At the present time, the only means that strata councils have of enforcing compliance is through the courts but this will change when the new Civil Resolution Act (CRA) comes in to effect, hopefully in 2013.  The CRA will establish an office to assist strata owners in interpreting the Strata Property Act and set up tribunals to resolve disputes without going to court.  Unfortunately, at the time of this writing, no one knows when this will happen.

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.

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.

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.

Regulation 6.1 requires that the Contingency Reserve Fund be equal to at least 25% of the Operating  Fund.  If the reserve fund is below that amount at the time of the AGM, an amount equal to 10% of the operating fund must be contributed annually until the Contingency. The  maximum contribution above which a 75% vote is required has been repealed. Any amount can be contributed to the CRF with a majority vote.
This does not mean that the entire reserve fund can’t be spent in one year, however.  The next budget must make a contribution equal to at least 10% of Operating Fund.  This must be done each year until the reserve fund equals at least 25% of the operating fund.
Please NOTE: This statutory minimum level for the CRF has no relationship to repair and maintenance costs over the longer term. These costs are reflected in a depreciation report; not the operating budget. (Guide 12 to the Strata Property Act)

Owners in a strata corporation have title to their strata lots.  Owners in a co-op do not have title to their unit.  They own shares in the co-op.

The strata must provide to owners or their designated representatives all of the information required under sections 35 and 36 of the Strata Property Act.
The Privacy Act cannot be used as an excuse for not collecting or releasing information required under sections 35 and 36 of the Strata Property Act.  Guideline 8 of the Privacy Guidelines for Strata Corporations and Strata Agents states: That if it is required by or authorized by law a strata corporation can disclose personal information without consent.
Bylaws can require additional information but the Privacy Guideline should be consulted before adopting such bylaws.
The Office of the Information and Privacy Commissioner has released guidelines for strata corporations.  These are available elsewhere on the VISOA website under the title of Privacy Guidelines for Strata Corporations and Strata Agents.