Strata Property Act

The Strata Property Act (SBC 1998, c. 43) is BC's primary legislation governing the creation, operation, and management of strata corporations, including condominiums, townhouse complexes, and bare land stratas. It establishes the legal framework for strata governance, covering bylaws, council authority, general meetings, common property, limited common property, and dispute resolution processes. All strata corporations in British Columbia must operate in compliance with this Act and its associated Regulation.

Under the Strata Property Act, a strata corporation is a legal entity that comes into existence automatically when a strata plan is deposited in the Land Title Office, without any separate registration or incorporation step. The strata corporation consists of all strata lot owners and is responsible for managing common property and assets on behalf of those owners. It has the power to sue, be sued, enter contracts, and hold property in its own name.

Bylaws under the Strata Property Act are the rules that govern the operation and administration of the strata corporation, including matters such as noise, pets, rentals, and the use of common property. Standard bylaws are set out in the Regulation to the Act, but individual strata corporations may amend or replace them by a three-quarters vote of eligible voters at an annual or special general meeting. Any bylaw amendment must be filed in the Land Title Office to be enforceable against new owners.

A Form B Information Certificate is a document that a strata corporation must provide upon request, disclosing key financial and governance information about the strata, such as the amount of strata fees, any special levies, outstanding orders, and the current bylaws and rules. Under the Strata Property Act and its Regulation, the strata corporation is generally required to provide the Form B within a set number of days of a written request, and buyers typically rely on it when conducting due diligence before purchasing a strata lot. The information contained in a Form B is binding on the strata corporation in favour of a purchaser who relies on it.

The Contingency Reserve Fund (CRF) is a fund that strata corporations are required to maintain under the Strata Property Act to cover the cost of major, unexpected, or infrequent repairs and replacements to common property and common assets. Strata corporations must contribute to the CRF through strata fees, and the Act and its Regulation set out minimum contribution requirements based on the age and circumstances of the strata. Expenditures from the CRF above certain thresholds generally require approval by a three-quarters vote of eligible voters.

Under the Strata Property Act and its Regulation, most strata corporations with five or more strata lots are required to obtain a depreciation report prepared by a qualified person, which provides a long-term financial planning analysis of the strata's common property, assets, and anticipated repair and replacement costs. Strata corporations may vote to waive the requirement to obtain or update a depreciation report, but such a waiver requires a three-quarters vote and must be renewed periodically. Prospective buyers should review the depreciation report as part of their due diligence, as it is typically disclosed through the strata records.

Limited common property (LCP) under the Strata Property Act is common property that is designated on the strata plan for the exclusive use of one or more strata lots, such as a designated parking stall, storage locker, or balcony. While LCP remains part of the common property owned collectively by the strata corporation, only the designated strata lot owner or owners are entitled to use it. Responsibility for repair and maintenance of LCP is allocated between the strata corporation and the individual owner according to the Act, the strata's bylaws, and any applicable sections of the Regulation.

The Strata Property Act provides several mechanisms for resolving disputes, including internal complaint procedures, voluntary mediation, and arbitration as set out in the Act itself. Owners, tenants, and strata corporations may also apply to the Civil Resolution Tribunal (CRT), which has jurisdiction over many strata-related disputes in BC under the Civil Resolution Tribunal Act. For matters outside the CRT's jurisdiction, or where a court order is sought, parties may apply to the BC Supreme Court.

A special levy under the Strata Property Act is an additional charge imposed on strata lot owners, beyond regular strata fees, to fund a specific expense that the strata corporation's operating fund or Contingency Reserve Fund does not adequately cover. Special levies generally require approval by a three-quarters vote of eligible voters at a general meeting, though the Act provides limited exceptions. Each owner's share of a special levy is typically calculated in proportion to their unit entitlement as shown on the strata plan.

A Form F Certificate of Payment is a document issued by the strata corporation confirming that, as of a specified date, the strata lot owner has paid all strata fees, special levies, and other amounts owing to the strata corporation. Under the Strata Property Act, a buyer of a strata lot is not required to pay a previous owner's outstanding strata debts if a valid Form F is obtained before completion of the sale, providing important protection to purchasers. Lawyers and notaries typically require the Form F as part of the conveyancing process for any strata lot transaction in British Columbia.