When a strata development has both residential and commercial components — for example a condo tower with retail on the ground floor — the residential owners and commercial owners may form separate sections under the Strata Property Act. Each section operates semi-independently with its own budget, its own council, and its own rules for the parts of the building used exclusively by that section. Shared expenses like the parkade or roof are split between sections. In a mixed-use strata, the section a lot belongs to and that section's separate financials are documented in the registered Strata Plan and the section's own budget package.
A strata section is a group of strata lots within a strata corporation that share a common use — such as residential or commercial — and are designated as a section under the Strata Property Act (SBC 1998, c. 43). Sections are permitted in mixed-use developments to allow residential and non-residential owners to manage and fund the parts of the building they use exclusively, while still sharing costs for common elements like a roof or parkade. The creation of sections must be established in the registered Strata Plan and governed by the Act's provisions on sections.
Strata sections in BC are created through the Strata Plan registered in the Land Title Office, and the sections must be designated at the time the strata plan is deposited or by subsequent amendment in accordance with the Strata Property Act (SBC 1998, c. 43). The Act requires that the strata plan identify which strata lots belong to each section. Once established, each section operates with its own executive — called a section council — and its own budget for expenses relating exclusively to that section.
Yes, under the Strata Property Act (SBC 1998, c. 43), a section may make, amend, or repeal bylaws that apply exclusively to the section and to matters that relate solely to that section's strata lots. These section-specific bylaws must not conflict with the strata corporation's overall bylaws, which continue to govern the entire strata. Section bylaws are passed at a section meeting and are registered with the Land Title Office to be enforceable.
A buyer should review both the strata corporation's overall financial documents and the strata section's separate budget, financial statements, and meeting minutes, all of which should be disclosed in the Form B Information Certificate provided under the Strata Property Act (SBC 1998, c. 43). The Form B must reflect the section's own contributions and any levies or special assessments specific to that section. Because section finances are semi-independent, reviewing only the corporation-wide documents without the section-level financials may give an incomplete picture of the lot's financial obligations.
Under the Strata Property Act (SBC 1998, c. 43), expenses related to common property or common facilities shared by more than one section — such as a roof, parkade, or building envelope — are allocated between the sections according to the formula set out in the strata corporation's bylaws or, if not addressed there, in proportion to the unit entitlement of the lots in each section. This means both residential and commercial sections contribute to shared building costs even though each section funds its exclusively-used areas independently. Buyers should examine the strata's bylaws and budget to understand exactly how shared cost allocations are calculated.
Yes, the Strata Property Act (SBC 1998, c. 43) requires each section to maintain its own contingency reserve fund for expenses relating exclusively to that section's common property or assets. The strata corporation also maintains a corporation-wide contingency reserve fund for shared common property expenses. Buyers should request the section's contingency reserve fund balance and, if applicable, the section's depreciation report as part of their due diligence.
The depreciation report requirements under the Strata Property Act (SBC 1998, c. 43) and its Regulation apply to strata corporations as a whole; however, where a section has exclusive common property with significant long-term repair and replacement obligations, a section-level depreciation report may also be required or prepared separately. The BC Government has updated depreciation report requirements, so buyers and section owners should consult current guidance from the BC Government or BCFSA for the specific thresholds and timelines applicable to sections. Regardless, buyers should obtain and review all available depreciation reports — both corporation-wide and section-specific — before completing a purchase.
Strata lots within a strata section are assessed for Property Transfer Tax under the BC Property Transfer Tax Act in the same manner as other strata lots — tax is calculated on the fair market value of the strata lot being acquired using the standard PTT rates of 1% on the first portion of value, 2% on the next portion, 3% on higher values, and an additional 2% on the residential portion of value exceeding $3,000,000. The fact that a lot belongs to a commercial section rather than a residential section may affect whether First-Time Home Buyer or Newly Built Home exemptions apply, as those exemptions are generally limited to residential properties; consult the BC Ministry of Finance for current eligibility rules. The strata section designation itself does not create a separate PTT exemption.
Licensed real estate professionals in BC are regulated by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA) and its Rules, which require licensees to act in the client's best interests and to disclose all material latent defects and information relevant to the transaction. When a strata lot is within a section, the licensee must ensure the client receives and reviews all section-specific documents — including the section budget, section bylaws, meeting minutes, and Form B — not just the strata corporation-wide documents. Failure to disclose material information related to a section's finances or special levies could constitute a breach of licensee obligations under RESA.
Under the Strata Property Act (SBC 1998, c. 43), a strata section does not have full separate legal personality in the same way a strata corporation does; it is a subdivision of the strata corporation rather than an entirely independent legal entity. The section executive — the section council — acts on behalf of section owners in managing section affairs and finances, but major legal matters and contracts relating to the whole strata continue to be handled through the strata corporation. Owners and section councils should seek legal advice if questions arise about the scope of a section's authority to contract independently.
Verify the specific statutory language, thresholds, deadlines and current guidance directly with the governing authority: