Buying a BC Strata: What to Know Before You Buy

Buying a condo or townhouse can be an exciting step, especially when you're looking for more space, less exterior maintenance or a home in a community that fits your lifestyle.

But when you're buying a BC strata, you're not only buying the individual home.

You're also becoming part of a strata corporation, which means understanding the building or community's finances, rules, maintenance responsibilities and long-term plans is an important part of your due diligence.

The listing photos may show you the kitchen, bedrooms and backyard.

The strata documents can tell you a lot about what ownership may actually look like.

What Is a Strata?

In British Columbia, strata ownership generally means you own your individual strata lot while sharing ownership and responsibility for common property and common assets with the other owners.

Depending on the property, common areas can include things such as roofs, exterior structures, hallways, landscaping, parking areas, elevators, amenities and other shared components.

Owners contribute through strata fees toward the corporation's expenses. Under the Strata Property Act, strata corporations maintain both an operating fund for common expenses and a contingency reserve fund for expenses that occur less frequently.

That's why looking only at the monthly strata fee doesn't give you the complete picture.

Start With the Form B

One of the key documents to review when buying a BC strata is the Form B Information Certificate.

BCFSA explains that a buyer is entitled to obtain a Form B, which provides important information about the strata lot and the strata corporation.

It can include information about:

• Monthly strata fees

• Money owed to the strata

• Alterations involving the strata lot

• The contingency reserve fund

• Litigation or arbitration involving the strata corporation

• Parking

• Storage lockers

The Form B must also have the strata's rules, current budget and most recent depreciation report attached, if one has been obtained.

This makes the Form B an important starting point when reviewing a strata purchase.

Don't Judge a Strata by Its Monthly Fee

A lower strata fee may look attractive at first.

But a low monthly fee doesn't automatically mean lower overall ownership costs.

The more useful question is: What does the strata fee cover, and how financially prepared is the strata corporation for future expenses?

For example, two buildings might have different monthly fees because they have different amenities, maintenance responsibilities, building ages or financial plans.

You'll want to understand what your monthly fee covers and whether the strata corporation appears to be adequately planning for future maintenance.

Read the Depreciation Report

A depreciation report is another important document when buying a BC strata.

Under the Strata Property Act, a depreciation report estimates the repair and replacement costs for major components and their expected life.

Depending on the property, these components can include major building systems and common property that may eventually require significant repairs or replacement.

The report can help you understand the long-term maintenance picture rather than simply looking at the building as it appears today.

You should pay attention to what major work is anticipated, what the report says about the condition and remaining life of major components, and how the strata is planning for those expenses.

Look at the Contingency Reserve Fund

The contingency reserve fund, commonly called the CRF, is used for certain less-frequent common expenses.

The Strata Property Act requires strata corporations to maintain this fund for eligible expenses, subject to the legislation's rules.

A buyer should therefore look at more than simply the current balance.

Ask questions such as:

What major projects are coming?

How much money is currently in the reserve fund?

Does the depreciation report identify significant upcoming expenses?

Has the strata recently completed major work?

The answers can give you a much better understanding of the property's financial position.

Watch for Special Levies

Special levies are another area buyers should understand before purchasing.

A strata corporation may need to raise additional money for certain expenses that aren't covered by the regular operating budget or contingency reserve fund.

If there is an existing special levy, make sure you understand:

• What the money is being used for

• How much your share will be

• Whether payments are due immediately or over time

• What work is planned

• Whether the amount has already been approved

Your real estate and legal professionals can help you review the specific situation before you commit to the purchase.

Read the Minutes, Not Just the Listing

The listing might say that the building is well maintained.

The meeting minutes can give you a much more detailed picture of what owners and the strata council have actually been discussing.

Look for recurring concerns involving things such as:

• Water leaks

• Roofing

• Building envelope

• Plumbing

• Elevators

• Parking

• Noise

• Insurance

• Major repairs

• Upcoming projects

You don't need to interpret every technical detail yourself.

The goal is to identify questions that should be investigated further.

Understand the Rules and Bylaws

Strata living comes with rules.

Depending on the property, bylaws and rules may address pets, rentals, age restrictions, smoking, parking, renovations, move-ins, short-term rentals and the use of common property.

Don't assume that a property will allow something simply because the current owner is doing it.

Review the actual documents and confirm anything important to your lifestyle before removing conditions or completing your purchase.

This can be especially important for buyers who have pets, plan to renovate, want to rent the property later or need specific parking arrangements.

Look Beyond the Individual Unit

One of the biggest advantages of buying a strata property is that you're buying into a larger community.

That also means the condition of the overall property matters.

During your viewing, look beyond the kitchen and living room.

Pay attention to the common areas, landscaping, parking, exterior condition, hallways and other shared spaces.

If the building or complex looks well maintained, that's useful information—but the documents still matter because some future expenses aren't visible during a showing.

Buying a BC Strata: Questions to Ask

Before purchasing, consider asking:

What are the current strata fees?

What do the strata fees include?

How much is in the contingency reserve fund?

Is there a current depreciation report?

Are there any approved or proposed special levies?

Is the strata involved in litigation?

What major repairs have recently been completed?

What major repairs are anticipated?

Are there restrictions on pets, rentals or renovations?

What do the recent meeting minutes tell you about the property?

These questions won't eliminate every uncertainty, but they can help you make a more informed decision.

Frequently Asked Questions

Are strata fees included in the mortgage payment?

Usually, strata fees are a separate monthly expense from the mortgage payment. However, lenders may consider applicable strata fees when assessing affordability.

Is a higher strata fee always a bad thing?

Not necessarily. The fee needs to be considered alongside what it covers, the property's maintenance requirements and the strata corporation's financial planning.

What is a Form B?

A Form B is an Information Certificate containing important information about a strata lot and the strata corporation, including items such as strata fees, contingency reserve information, litigation and parking/storage information.

Why does the depreciation report matter?

It provides information about the estimated repair and replacement costs and expected life of major components, helping buyers understand the property's longer-term maintenance picture.

Should I have a lawyer or notary review the documents?

Yes. Real estate professionals can help you understand the transaction and identify questions, while your lawyer or notary can provide legal advice and review the legal documents relevant to your purchase.

Final Thoughts

Buying a BC strata can be a great fit for buyers who want a particular combination of location, space, amenities and shared maintenance responsibilities.

But the decision shouldn't be based on the unit alone.

The strata's finances, rules, maintenance history and future plans can all affect your experience as an owner. Taking the time to review the documents and ask questions before committing can help you understand what you're actually buying.

If you're considering a condo or townhouse in Langley and want to understand the differences between individual properties and strata communities, I’d be happy to help you look at the options and identify the questions worth asking.

Your goals. Your move. The right strategy.