Under the Strata Property Act, SBC 1998, c. 43, the Contingency Reserve Fund is a mandatory savings fund held by the strata corporation for major repairs and replacement of common property and assets. It is separate from the operating fund and intended for expenses that occur less than once a year or that do not regularly occur. The CRF balance is a key due diligence item reviewed in Form B (strata documents) prior to purchasing a strata unit in BC.

Section 93(a) of the Strata Property Act, SBC 1998, c. 43, requires strata corporations to contribute to the contingency reserve fund at least 10% (as of 2026-07-27 — verify current) of the total contribution to the operating fund for the current year, unless a depreciation report recommends a different contribution amount. If a current depreciation report exists, the strata must contribute the amount recommended by that report. Verify the specific requirement applying to any strata corporation with a BC lawyer or notary before acting.

No. Under s. 93 of the Strata Property Act, SBC 1998, c. 43, the minimum CRF contribution (10% of operating fund contributions or the depreciation report recommended amount, as of 2026-07-27 — verify current) is mandatory and cannot be waived by a vote of owners. The only exception is if a depreciation report recommends a lower contribution and the strata adopts that recommendation. Verify current requirements with a BC lawyer or notary before acting.

Section 96 of the Strata Property Act, SBC 1998, c. 43, permits expenditure of CRF funds only for expenses that usually occur less than once a year or that do not usually occur (e.g., roof replacement, elevator overhaul, major exterior repairs). Routine operating expenses such as monthly landscaping or utility bills cannot be paid from the CRF. Verify the permissible use of CRF funds for a particular expense with a BC lawyer or strata management professional before proceeding.

Under s. 94 of the Strata Property Act, SBC 1998, c. 43, a depreciation report is a professional assessment of the current condition and remaining useful life of common property and assets, with a funding plan for their repair and replacement. Strata corporations must obtain a depreciation report at least once every five years, unless owners vote by a 3/4 vote to waive it (as of 2026-07-27 — verify current). When a depreciation report exists, the CRF contribution must be at least the amount recommended in the report, even if higher than 10% of operating fund contributions. Verify applicability and timing with a BC lawyer or strata professional.

Under the Strata Property Act and the Real Estate Services Act, the seller or listing brokerage must provide the buyer with Form B (Information Certificate) and other strata documents, which include the current CRF balance, recent financial statements, depreciation report (if any), and details of any approved or pending special levies. Buyers should review the CRF balance in relation to the strata's size, age, and upcoming capital needs identified in the depreciation report. Verify all financial details and have the documents reviewed by a BC lawyer or notary before completing the purchase.

A special levy is a one-time assessment approved by strata owners (typically by a 3/4 vote under s. 108 of the Strata Property Act, SBC 1998, c. 43) to cover a major expense when the CRF is insufficient. A well-funded CRF, based on a current depreciation report, reduces the likelihood that owners will face unexpected special levies for capital repairs or replacements. Verify the strata's levy history and CRF adequacy with a BC lawyer or notary during your purchase due diligence.

Under s. 96 and s. 98 of the Strata Property Act, SBC 1998, c. 43, the strata council may approve expenditures from the CRF without a general meeting vote, provided the expense is consistent with the approved annual budget or falls within permitted CRF uses (major repairs, replacements occurring less than once a year). Expenditures significantly exceeding the budgeted amount or outside the approved budget typically require owner approval by resolution. Verify the approval threshold for a specific expenditure with a BC lawyer, notary, or strata manager before proceeding.

Section 95(2) of the Strata Property Act, SBC 1998, c. 43, requires that interest and income earned on money in the contingency reserve fund must be placed in the contingency reserve fund, not the operating fund. The strata corporation may invest CRF funds in accordance with s. 95(1), typically in interest-bearing accounts or investments permitted by the regulations. Verify current investment rules and practices with a BC lawyer, notary, or strata management professional.

A low CRF balance or absence of a current depreciation report may signal higher risk of future special levies or deferred maintenance. Under BC law, buyers should review Form B, financial statements, minutes, and the depreciation report (if any) as part of standard due diligence. Consider requesting a subject-to-review clause in the Contract of Purchase and Sale, and have a BC lawyer or notary assess the strata's financial health and your potential liability for upcoming expenses before removing subjects. Verify all details with a BC real estate lawyer or notary before finalizing the purchase.