Buying a Condo or Townhouse in BC: The Strata Documents to Read First

When you buy a condo or townhouse, you are buying more than a home. You are joining a strata corporation, sharing its budget and its building, and agreeing to live by its bylaws. The strata documents show you how well the building has been looked after and what it may cost you in the years ahead. Here is what I ask for on a strata purchase, and what I look for when I read it.

The short version

Why the paperwork matters

In a strata, the owners share the cost of the building: the roof, the exterior walls, the elevators, the parkade and the grounds. Those costs show up in your monthly strata fees and, when the savings fall short, in special levies. The documents tell you whether the strata is planning ahead or putting things off, and whether any big bills are already on the horizon.

A unit can show beautifully and still sit in a building with a leaking envelope or a lawsuit in progress. The only way to know is to read.

The documents to request

Form B Information Certificate

The Form B is a standard certificate that the strata corporation must provide within 7 days of a request, for a fee of no more than $35 plus copying costs. It confirms the strata fees for the unit and whether the seller owes the strata money, and it lists approved special levies, the contingency reserve fund balance, pending bylaw changes and resolutions, any legal action involving the strata, work orders, and the parking and storage assigned to the unit. Since April 2023 it also includes a summary of the strata's insurance. The current budget, the rules and the most recent depreciation report are attached.

Council and general meeting minutes

Minutes are where problems show up first, often long before they reach a budget or a levy. I like to read at least the last two years of strata council minutes, plus the minutes of the most recent annual general meeting and any special general meetings. I look for repeat mentions of leaks or repairs, insurance claims, disputes between owners, legal action, and any talk of a special levy or major project that has not been voted on yet.

Financial statements and budget

The budget shows what the strata expects to spend this year, and the financial statements show whether it is sticking to it. Check how much goes into the contingency reserve fund, the strata's savings for repairs and replacements. Since November 2023, BC strata corporations must contribute at least 10% of their annual operating budget to it. Also note whether many owners are behind on their fees, which can strain the budget for everyone.

The depreciation report

A depreciation report is a long-range plan for the building's major components, from roofing and windows to boilers and elevators, with estimates of when each will need repair or replacement and what that may cost. Since July 1, 2024, strata corporations with five or more units must get one every five years, and owners can no longer vote to skip it. Compare what the report says will be needed with what is actually in the contingency reserve fund. A large gap often points to special levies or higher fees down the road.

Bylaws and rules

Bylaws and rules govern daily life in the building: pets, parking, renovations, moving, noise, barbecues and more. Read them with your own plans in mind. A few points have changed in recent years:

• Rentals. Since November 24, 2022, bylaws that restrict renting out a unit can no longer be enforced in BC.
• Short-term rentals. A strata can still restrict or ban short-term rentals, with fines of up to $1,000 a day.
• Age. Age-restriction bylaws are only allowed for 55-plus buildings.

Insurance

The strata insures the building, but its policy has deductibles, and they can be high. If you are responsible for damage, for example from a burst pipe or an overflowing washing machine in your unit, the strata may be able to charge the deductible to you, even if you were not at fault. Before you remove subjects, ask your insurance provider to quote a condo policy that covers strata deductibles, and check the deductibles listed in the insurance summary.

Engineering and other reports

If the strata has commissioned a building envelope, roof or other engineering report, ask for it, especially in an older building or where the minutes mention water getting in. The Form B also discloses any electrical planning report, which looks at the building's electrical capacity for things like EV charging.

Red flags I watch for

None of these automatically rules a building out. They are reasons to ask more questions, factor the risk into your offer, or keep looking.

Buying in a newer building

New homes in BC come with home warranty coverage under the Homeowner Protection Act, often called 2-5-10 coverage: limited coverage for defects in materials and labour (12 months for most items, and up to 24 months for systems like plumbing, electrical and heating), 5 years for the building envelope, including water getting in, and 10 years for the structure. If you are buying a resale unit in a building that is only a few years old, find out how much coverage is left and whether the strata has any warranty claims in progress.

When to read them

Most strata offers in BC include a subject for the buyer's review and approval of the strata documents, alongside subjects for financing and inspection. Ask for the documents as early as you can, since a full set can run to hundreds of pages, and give yourself enough days in your subject period to read them properly. I am glad to go through them with you, and for anything legal or technical, your lawyer, notary or home inspector can weigh in too.

BC's three-business-day home buyer rescission period also applies to most resale strata purchases, but it is no substitute for a proper subject period. Cancelling that way costs 0.25% of the purchase price.

Questions buyers often ask me

What is a Form B in BC?

The Form B Information Certificate is a standard document from the strata corporation that summarizes a unit's strata fees, any money owed, approved special levies, the contingency reserve fund balance, legal proceedings, parking and storage, and the strata's insurance. The strata must provide it within 7 days of a request, for no more than $35 plus copying costs.

How many years of strata minutes should I read?

I recommend at least two years of council minutes, plus the most recent annual general meeting and any special general meetings. If the minutes mention an ongoing problem, it is worth going back further.

Can a strata stop me from renting out my condo?

Generally, no. Since November 24, 2022, bylaws that restrict rentals can no longer be enforced in BC. Strata corporations can still restrict short-term rentals, so read the bylaws if that is part of your plan.

Does every strata need a depreciation report?

Strata corporations with five or more units must get a depreciation report every five years, and since July 1, 2024 owners can no longer vote to skip it. Strata corporations with four or fewer units are exempt.

Who pays the strata insurance deductible?

The strata's policy pays for covered damage above the deductible. If you are responsible for the loss, which can be the case even when you were not at fault, the strata may be able to recover the deductible from you. Many owners carry condo insurance that covers this.

Starting your search? Get pre-approved so you know your budget, use my mortgage calculator to factor strata fees into your monthly costs, and see my current listings.

This article is general information, not legal advice. For the full rules, see the Province of BC's guide to strata housing.