Leaky Condos in BC: Building Envelope Problems and What to Check

Thousands of BC condos and townhouses built in the 1980s and 1990s let rain into their walls, and their owners paid for the repairs. Here is what went wrong, how the rules changed, and what to check before you buy in an older building.

The short version

What went wrong

Many of the condos and townhouses built in the Lower Mainland in the 1980s and 1990s let water into their walls, where it stayed and damaged the structure behind the cladding. Research for Canada Mortgage and Housing Corporation (CMHC) found why:

• Rain, not condensation. A 1996 CMHC survey of 46 low-rise wood-frame buildings in coastal BC, first occupied from 1985 on, found that outside water caused by far the majority of the problems.
• The joints. Water got in mostly around windows and at the edges of decks, balconies and walkways, not through the middle of the wall.
• One line of defence. The face-sealed walls relied on their outer surface alone, which the survey found very sensitive to design and construction. Buildings with roof overhangs performed significantly better.
• High-rises too. A 2001 study for CMHC and the Homeowner Protection Office found that concrete walls held up relatively well, but windows and window walls were a focal point for problems.

By 2003, the Homeowner Protection Office had been involved with close to 900 buildings, about 50,000 homes, with an estimated total repair bill of $1.5 billion.

How the Province responded

• The inquiry. The Commission of Inquiry into the Quality of Condominium Construction in British Columbia, led by Dave Barrett, reported on June 18, 1998, with 82 recommendations, from the building code and repair financing to home warranties.
• The Homeowner Protection Act. Passed on July 28, 1998, it created the Homeowner Protection Office, which opened on October 1, 1998 and offered owners of leaky homes no-interest repair loans and a PST relief grant. The loan program closed on July 31, 2009; BC Housing now handles licensing.
• Licensed builders and warranties. Most new homes with building permits applied for on or after July 1, 1999 must be built by licensed builders and covered by home warranty insurance, with 5 years of coverage for the building envelope.
• Envelope repairs. For building permits applied for after September 30, 2000, major envelope repairs need licensed renovators.
• The building code. The 2006 BC Building Code required a capillary break, such as a drained air space at least 10 mm deep behind the cladding, in the walls of houses and small buildings in wet climates, which under its climate data included Vancouver, Surrey and Abbotsford.

Face-sealed and rainscreen walls

A face-sealed wall tries to stop all the rain at its outer surface, so it depends on every joint and bead of caulking staying tight; water that gets past it has no easy way out. In the 2001 high-rise study, 86% of the walls were face-sealed.

A rainscreen wall expects some water to get past the cladding. A narrow cavity behind the cladding gives that water a path to drain out and helps the wall dry, and CMHC's 1996 survey concluded that, in theory, rainscreen systems offered the best opportunity for acceptable performance. If a listing says a building has been rainscreened, ask which walls were done, when and by whom.

Which buildings deserve a closer look

• Buildings from the 1980s and 1990s, especially those finished before mandatory home warranty insurance and never fully repaired.
• Wood-frame low-rises and townhouses with face-sealed walls, little roof overhang and many balconies, decks and walkways.
• High-rises from the same years, where windows and window walls were the weak point.
• Any building with repeated leaks in the minutes, or an envelope report whose recommendations haven't been acted on.

A fully remediated building can be a sound choice, depending on the scope of the work, who did it, any warranty, and what is left to pay.

What to read before you remove subjects

These are the documents I go through, following BC Housing's advice for strata buyers:

• The depreciation report. Since July 1, 2024, stratas with five or more lots must get one at least every five years, covering the building's exterior, including roofs, doors and windows, and its balconies. Compare its plans for the walls and windows with the contingency reserve fund. The latest report comes with Form B.
• Envelope or engineering reports. Ask whether the envelope has been assessed, when, what was recommended and whether the strata acted on it. If repairs are planned, ask for the report and the scope of work.
• Minutes. Read at least two years of council and general meeting minutes, more if leaks keep coming up. Look for water ingress, leak repairs, mould, window or balcony problems, and talk of an envelope project or a loan.
• Form B. It shows approved special levies and what the unit still owes on them, the contingency reserve fund balance, legal proceedings and outstanding work orders.
• Insurance claims. Ask for the history of claims on the strata's insurance.
• Any warranty on past repairs. Ask whether a licensed building envelope renovator did the work, whether warranty insurance covers it and when it expires, and get the answers in writing.

Signs to notice at a viewing

A viewing won't show you inside the walls, but CMHC's checklist for resale condos includes signs worth noticing:

• Outside: cracked, corroded or water-stained walls, loose siding, white marks on brick, rusty balcony railings and crumbling balcony slabs.
• Inside: water stains or damaged drywall around windows and near floors or ceilings, windows with drafts or mould, and any odour when you walk in.
• Common areas: leaks or mould in locker rooms, and leaks or crumbling concrete in the parkade.

In most cases, a home inspector isn't required or able to report on the envelope and other common elements, so BC Housing suggests a qualified engineer for the building itself.

Insurance and financing

• Insurance isn't a repair fund. As the Insurance Bureau of Canada puts it, a home insurance policy is not a maintenance contract, and gradual deterioration and rot aren't insured perils. Envelope repairs are generally paid for by the owners.
• Deductibles. A strata's deductibles depend partly on its claims history, and the Province notes that timely repair and maintenance help keep them low. Make sure your own policy covers your share.
• Special levies. If a levy is approved before you buy, the seller owes the strata the instalments due before the conveyance date and you owe the rest, though you can negotiate a credit from the seller.
• Borrowing. Strata fees count against what you can borrow; for insured mortgages, CMHC counts 50% of condo fees in its debt ratios. Tell your mortgage professional early about any envelope work.

What remediation means for a building

A building envelope renovation fixes defects that let water in, or the damage the water caused, and usually involves walls, windows, doors and roofs.

• Who does it. Under BC's Building Envelope Renovation Regulation, a licensed building envelope renovator does the work, and a building envelope consultant, such as an architect or engineer, investigates the problems and advises on or supervises it.
• The warranty. When the work replaces 60% or more of the cladding on the building or one face of it, and costs at least $10,000 or $2,000 per unit, whichever is more, it must carry warranty insurance of at least 2 years on labour and materials and 5 years on the envelope, including water penetration, for the renovated areas.
• The exemptions. The regulation doesn't apply to some buildings, including multi-unit buildings first occupied 25 or more years before the work starts, so a 2026 remediation of a building from the 1990s may need no licensed renovator or warranty insurance. Ask what the contractor and consultant will provide.
• Paying for it. The money comes from the contingency reserve fund, a special levy or a loan. A special levy needs a 3/4 vote, and if a levy for repairs needed for safety or to prevent significant loss or damage gets a majority but not 3/4, the strata can ask the BC Supreme Court to approve it.
• Afterwards. BC Housing warns that negligent or improper maintenance can limit warranty coverage.

Questions buyers often ask me

What is a leaky condo?

A building whose walls let rain in and can't dry out, damaging the structure behind the cladding. In BC, it usually means condos and townhouses built in the 1980s and 1990s with face-sealed walls, many of which have since been repaired.

Is it safe to buy in a building that has been rainscreened?

It can be. Ask for the engineering report and scope of work, who did it, whether there is warranty insurance on the repairs and when it expires, and whether the seller has paid all levies for the work.

What is the difference between a face-sealed and a rainscreen wall?

A face-sealed wall tries to stop all water at its outer surface. A rainscreen wall has a drained cavity behind the cladding, so water that gets past the cladding can drain out and the wall can dry.

Do leaky condo repairs come with a warranty?

Major envelope repairs on buildings under 25 years old generally must carry warranty insurance: at least 2 years on labour and materials and 5 years on the envelope, including water penetration. Ask for the policy and its expiry date in writing.

Who pays for leaky condo repairs?

Generally the owners, through the contingency reserve fund, special levies or a strata loan, usually shared by unit entitlement. Insurance doesn't cover gradual deterioration.

Buying in an older building? Read the strata documents to read first, what a home inspection covers, how 2-5-10 warranties work and how condo insurance and strata deductibles work.

This article is general information, not legal advice. The details come from BC Housing, CMHC, the Province and BC's laws, and were current at the time of writing; for a specific building, ask a qualified engineer. For BC Housing's guide, see buying a previously owned home.