Buying a Strata Property in BC? Read These 5 Documents Before Your Offer Goes Firm

Start with the Form B and a subject clause

In BC, most of what you need starts with the Form B Information Certificate. The strata corporation must provide it within 7 days of a request, for no more than $35 plus 25 cents a page.

The Form B shows the monthly strata fee, any approved special levies, the contingency reserve fund balance, pending votes, legal proceedings, and a summary of the building's insurance. It must come with the strata rules, the current budget and the most recent depreciation report.

The Form B doesn't include meeting minutes, so we request those separately, usually through the seller. To give yourself time to read everything, write your offer subject to a satisfactory review of the strata documents. If something serious turns up, you can walk away before the deal is firm.

1. Strata council and AGM minutes

The minutes are where a building tells you what it's really dealing with. We read at least the last two years of council meetings and annual and special general meetings, and more when we can get them. The Condominium Home Owners' Association recommends five years where possible.

What we look for:

• Recurring repairs. The same leak, roof patch or elevator call month after month often points to an aging system nearing replacement.
• Insurance claims, especially water damage. Repeat claims can push up premiums and deductibles for everyone.
• Talk of big projects. Envelope work, window replacement or re-piping "under discussion" is often next year's special levy.
• Disputes. Ongoing conflicts between owners, council or the property manager make a building harder to run.
• Minutes that say almost nothing. Very thin minutes can mean issues aren't being recorded.

We also check that the minutes line up with the Form B and the depreciation report. If they tell different stories, we ask why.

2. The contingency reserve fund

The contingency reserve fund (CRF) is the building's savings account for big, infrequent costs like a new roof, elevator upgrades or repaving. Since November 1, 2023, BC stratas must put at least 10% of their operating budget into it every year.

The balance alone doesn't tell you much. $200,000 is healthy for a 12-unit townhome complex with a newer roof, and thin for a 150-unit tower facing an envelope repair. So we compare the CRF balance with what the depreciation report says is coming in the next 5 to 10 years.

Red flags:

• A balance that's small next to upcoming repairs in the depreciation report
• Contributions held at the 10% minimum while big projects are on the horizon
• Recent CRF spending that wasn't planned, like emergency repairs or covering insurance deductibles

3. The depreciation report

The depreciation report is a 30-year forecast of what the building will need to repair or replace, roughly when, and what it will cost. It's prepared by a qualified professional after an on-site inspection, and it includes at least three funding models showing how the strata could pay for that work.

BC's rules tightened recently. Stratas with five or more units need a new report every five years. Since July 1, 2024, they can no longer skip it with an annual owner vote. Stratas in Metro Vancouver, the Fraser Valley and the Capital Region that didn't have a current report had until July 1, 2026 to get one.

How we read it:

• Start with the executive summary, then go to the 30-year cash-flow table.
• Check which funding model the strata actually follows. If it's the cheapest one, expect special levies or fee increases later.
• Note anything big due in the next five years, like a roof, windows, piping or the building envelope.
• Check the date. A report that's several years old may no longer match the building's condition.

4. Special levies, past and planned

A special levy is a one-time charge to every owner, usually for a project the CRF can't cover. Depending on the building and the work, it can run from a few hundred dollars to tens of thousands per unit.

In BC, timing decides who pays. If a levy was approved before the sale, the seller owes any instalments due before the completion date and the buyer owes the rest. That's why we check the levy's payment dates, not just whether one exists.

What we look for:

• Approved levies listed on the Form B, with amounts and due dates
• Levies being discussed in the minutes but not yet voted on, which the Form B won't show
• A history of frequent levies, which can mean the CRF is underfunded

If a levy is likely, it can often be handled in the offer, through a lower price or the seller agreeing to cover it. The contract should also say who gets any refund if the project comes in under budget.

5. Bylaws and rules

Bylaws decide how you can actually live in the home: pets, parking, renovations, noise, move-ins, even BBQs on balconies. We read them against what the buyer has told us matters to them.

A few things changed in BC on November 24, 2022:

• Rental restrictions are gone. Stratas can no longer ban or cap long-term rentals. They can still restrict short-term stays like Airbnb.
• Most age restrictions are gone. Only 55-and-over bylaws are still allowed.

What we check:

• Pets: limits on number, size or type
• Renovations: approval rules, especially for flooring, plumbing and anything touching common property
• Short-term rentals: whether they're allowed, if that matters to the buyer
• Pending changes: bylaw amendments that have been passed but not yet filed show up on the Form B

Other documents worth asking for

The five above do most of the work, but a few more round out the picture:

• Financial statements. These show what the strata actually spent, not just what it budgeted. Several years side by side show whether fees keep up with costs.
• The insurance certificate. Check the deductibles, especially for water damage. If water from your unit damages others, you could be responsible for the deductible, so match your own condo insurance to it.
• Engineering or building envelope reports. If the minutes mention one, ask for it. It often has more detail than the depreciation report.
• The strata plan. This shows exactly what you own, what's common property, and which parking stall and storage locker are yours.

The short version

Before your offer goes firm, make sure someone has read:

• ☐ The Form B, with the rules, budget and depreciation report attached
• ☐ At least two years of council and general meeting minutes
• ☐ The contingency reserve fund balance, measured against upcoming repairs
• ☐ The depreciation report's next five years and the funding model the strata follows
• ☐ Any approved or likely special levies, with their due dates
• ☐ The bylaws that matter to how you'll live there
• ☐ The insurance deductibles

A beautiful home in a poorly run strata can turn into an expensive headache. That's why we read every page.

Buying a condo or townhome in BC? Contact the Wiggins Group and we'll walk you through the strata documents before your offer goes firm.

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This article is general information, not legal advice. For questions about a specific strata, speak with a real estate lawyer.

Sources

• Form B Information Certificate, Government of BC
• Depreciation report requirements, Government of BC
• The contingency reserve fund, Government of BC
• Special levies in stratas, Government of BC
• BC government ends rental and age restrictions, BCFSA
• A cautionary tale of not reading strata documents properly, REW.ca
• Strata documents in BC, FirstService Residential