Strata Corporation

A strata corporation is the legal entity that comes into existence automatically when a strata plan is filed in the Land Title Office, creating individually owned strata lots alongside shared common property. It is governed by the Strata Property Act (SBC 1998, c. 43) and its Regulation, which set out how the corporation must be managed, financed, and administered. Every owner of a strata lot in BC automatically becomes a member of the strata corporation upon registering title to their unit.

A strata corporation is managed by a strata council, which is a group of elected owners or their delegates chosen at the annual general meeting (AGM) in accordance with the Strata Property Act (SBC 1998, c. 43). The strata council makes day-to-day decisions on behalf of all owners and must act within the authority granted by the Act, the strata corporation's bylaws, and resolutions passed at general meetings. Strata councils may also hire a licensed strata management company to assist with administration, though ultimate responsibility remains with the council.

Under the Strata Property Act (SBC 1998, c. 43), monthly strata fees are contributions from each owner toward the strata corporation's operating fund, which covers day-to-day expenses such as insurance on common property, maintenance, landscaping, utilities for common areas, and management costs. A portion of each owner's fees must also be allocated to the contingency reserve fund (CRF), which is set aside for major future repairs and replacements. The share each owner pays is typically based on their unit entitlement as shown on the strata plan.

The contingency reserve fund (CRF) is a savings account maintained by the strata corporation under the Strata Property Act (SBC 1998, c. 43) to pay for major, infrequent expenses such as roof replacement, elevator overhauls, or parking surface repairs. Buyers should review the CRF balance and any depreciation report before purchasing, as an underfunded CRF may lead to a special levy assessed against all owners to cover unexpected large costs. The CRF balance and recent financial statements are typically disclosed in a Form B Information Certificate, which a buyer or their licensee should request prior to completing a purchase.

A Form B Information Certificate is a document that the strata corporation is required to provide under the Strata Property Act (SBC 1998, c. 43) and discloses key financial and legal information about the strata corporation, including strata fees, outstanding special levies, the CRF balance, any pending lawsuits, and the current bylaws and rules. Buyers typically request a Form B as part of their due diligence, and real estate licensees in BC are expected to advise clients of its importance in accordance with their professional obligations under the Real Estate Services Act (RSBC 2004, c. 42) and BCFSA guidelines. The Form B is normally obtained from the strata corporation or its manager for a fee set under the Regulation.

A depreciation report is a professional study of a strata corporation's common property and common assets that forecasts the remaining useful life of major components and estimates future repair and replacement costs, helping owners plan CRF contributions. Under the Strata Property Act (SBC 1998, c. 43) and its Regulation, most strata corporations with five or more strata lots are required to obtain and renew a depreciation report on a regular cycle unless owners vote to waive it by a three-quarters vote at a general meeting. Buyers should obtain and review the most current depreciation report as part of their due diligence to assess the long-term financial health of the strata corporation.

Yes, a strata corporation can amend its bylaws, but most amendments require approval by a three-quarters vote of eligible voters at an annual or special general meeting, as set out in the Strata Property Act (SBC 1998, c. 43). Certain bylaw amendments — such as those affecting the use of a strata lot in a way that requires unanimous consent — have a higher threshold under the Act. Once approved, amended bylaws must be filed at the Land Title Office to be enforceable against owners and future purchasers.

A special levy is a one-time charge assessed by a strata corporation against all owners to fund a significant expense that the operating fund and CRF cannot cover, such as emergency repairs or a large capital project. Under the Strata Property Act (SBC 1998, c. 43), a special levy must generally be approved by a three-quarters vote at a general meeting, and each owner's share is typically calculated based on unit entitlement. Once approved, a special levy is a legal obligation of all strata lot owners, including those who voted against it, and unpaid amounts can become a charge against the strata lot.

Common property in a BC strata is owned by the strata corporation as a whole and is held as tenants in common by all strata lot owners in shares proportional to their unit entitlement, as defined under the Strata Property Act (SBC 1998, c. 43). No individual owner may sell, mortgage, or exclusively occupy common property without the strata corporation's authority. Limited common property (LCP) is a subset of common property designated for the exclusive use of one or more specified strata lots — such as a parking stall or balcony — but it remains common property and is still maintained according to the Act and the strata corporation's bylaws.

The Strata Property Act (SBC 1998, c. 43) provides several dispute resolution options, including internal complaint procedures under the strata corporation's bylaws, voluntary dispute resolution between parties, and civil resolution through the Civil Resolution Tribunal (CRT), which has jurisdiction over many strata-related disputes in BC. For matters outside the CRT's jurisdiction or for more complex enforcement issues, parties may apply to the BC Supreme Court. Owners and strata corporations alike are encouraged to attempt resolution through the strata's own processes before escalating to formal proceedings.