Strata Lot

A strata lot is created under the Strata Property Act (SBC 1998, c. 43) when a strata plan is deposited in the Land Title Office, at which point the strata corporation comes into existence and each strata lot receives its own indefeasible certificate of title. The strata plan defines the boundaries, unit entitlement, and designation of common property and limited common property for every lot in the development. No strata lot can exist in BC without this registration process; the former Condominium Act terminology used in other provinces does not apply here.

The boundaries of a strata lot are defined by the registered strata plan deposited in the Land Title Office, and may run to the centre of party walls, the interior face of finished surfaces, or another line as specified in that plan. These boundary definitions are critical under sections 68–73 of the Strata Property Act because they establish which surfaces and structures the owner is responsible for maintaining and insuring versus the strata corporation. Owners should obtain and review a copy of the registered strata plan to understand exactly what falls within their lot boundaries.

Yes — each strata lot receives its own property tax folio with BC Assessment, and the owner is assessed and taxed independently on their strata lot as a distinct parcel of real property. The strata corporation is separately assessed for common property and common assets that it holds title to. This means a strata lot owner receives their own annual property assessment notice and is responsible for paying property taxes on their individual lot.

Unit entitlement is a number assigned to each strata lot in the registered strata plan and is used under the Strata Property Act to calculate each owner's proportionate share of the strata corporation's expenses, including monthly strata fees and contributions to the contingency reserve fund. A lot with a higher unit entitlement pays a larger share of common expenses than a lot with a lower unit entitlement. Unit entitlement is set when the strata plan is deposited and generally reflects the relative floor area or value of the lot, depending on the type of strata development.

A Form B Information Certificate is a document prescribed under the Strata Property Act Regulation that a strata corporation must provide to a buyer or their representative upon request, disclosing key financial and legal information about the strata corporation, including the current strata fees for the lot, any special levies, outstanding judgments, and the status of the contingency reserve fund. It is one of the most important disclosure documents in a strata lot purchase because it gives a buyer a snapshot of the strata corporation's financial health and any liabilities that could affect the strata lot. Buyers and their licensees — who are regulated by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA) — should review the Form B carefully before subjects are removed.

Under the BC Property Transfer Tax Act, the general PTT rates on a strata lot purchase are 1% on the first $200,000 of the fair market value, 2% on the portion between $200,000 and $2,000,000, 3% on the portion between $2,000,000 and $3,000,000, and an additional 2% on any residential value exceeding $3,000,000. First-time home buyers may qualify for a full exemption on properties with a fair market value up to $835,000, and buyers of newly built strata lots may qualify for the Newly Built Home Exemption on properties valued up to $1,100,000, subject to eligibility conditions. Buyers should consult the BC Ministry of Finance for current thresholds and qualification criteria.

Under the Strata Property Act, the strata corporation holds title to the common property and common assets on behalf of all strata lot owners collectively; individual owners do not hold registered title to common property. Each strata lot owner holds an indefeasible certificate of title only to their individual strata lot. This division of title is why strata corporations carry their own insurance on common property under the Strata Property Act, while owners are responsible for insuring their individual strata lots and any improvements within their lot boundaries.

When a strata lot owner dies, their strata lot forms part of their estate and is dealt with under the Wills, Estates and Succession Act (WESA) of BC, either according to the terms of the deceased's will or, if there is no valid will, according to WESA's intestacy provisions. The executor or administrator of the estate must obtain probate or a grant of administration from the BC Supreme Court before they can legally transfer or sell the strata lot, and a transmission application must be registered in the Land Title Office to vest title in the estate representative. Strata fees and other strata corporation obligations continue to accrue against the lot during the estate administration period.

Bare-land strata lots can be situated within the Agricultural Land Reserve, but subdivision of land within the ALR — including by way of a bare-land strata plan — generally requires approval from the Agricultural Land Commission under the Agricultural Land Commission Act (SBC 2002, c. 36). Proposed strata developments within the ALR must meet the ALC's requirements regarding minimum lot sizes and permitted uses, and non-farm use of ALR land requires an ALC non-farm-use application. Parties considering a strata development on ALR land should contact the Agricultural Land Commission directly for current rules and approval requirements.

A real estate licensee acting for a strata lot buyer in BC is regulated by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA) and its Rules, and owes the buyer duties of loyalty, disclosure, and competence consistent with their agency relationship. Among other obligations, the licensee must take reasonable steps to discover and disclose material information about the strata lot, which typically includes reviewing the Form B Information Certificate, Form F (Certificate of Payment), strata bylaws, minutes, depreciation report, and contingency reserve fund study. Licensees must also comply with BCFSA's disclosure and remuneration rules and ensure that any personal information collected in the transaction is handled in accordance with BC's Personal Information Protection Act (PIPA).