British Columbia Law
Buying a Strata Property in BC: What to Check Before You Sign
Buying a strata property in British Columbia — a condo, townhouse, or bare-land strata — is different from buying a freehold home. You are not just buying your unit; you are buying into a corporation with shared finances, shared rules, and shared responsibilities. Getting the due diligence right before you remove your subject conditions can save you from thousands of dollars in unexpected costs.
What Is a Strata Corporation?
Every strata development in BC is governed by the *Strata Property Act* (SPA). Once a strata plan is deposited with the Land Title Office, a strata corporation is automatically created. It manages the common property (hallways, roof, parking, amenities), collects monthly strata fees, enforces bylaws, and maintains a contingency reserve fund (CRF) for major repairs.
As a buyer, you become a member of the strata corporation the moment you take title. You share responsibility for the corporation's financial health and are bound by its bylaws — whether you knew about them or not at the time of purchase.
The Strata Documents Package
Your Contract of Purchase and Sale should include a subject condition giving you time to review the strata documents. This package, provided by the strata management company, is your window into the corporation's health. Key documents include:
Form B — Information Certificate
This document confirms the seller's strata fees, any outstanding fines or levies against the unit, and the total amount in the contingency reserve fund. Always read Form B carefully — a low CRF balance is a red flag.
Meeting Minutes (last 2 years)
Minutes reveal what problems the building has been dealing with: leaky roofs, water infiltration, elevator repairs, unresolved disputes. Pay close attention to any mention of upcoming major repairs or legal proceedings.
Bylaws and Rules
These govern how you can use your unit — pet restrictions, rental restrictions, renovation approval requirements, short-term rental prohibitions (Airbnb). Bylaw changes require a 3/4 vote of owners. Check whether the current bylaws match how you plan to use the property.
Financial Statements
Review the strata's operating budget and reserve fund balance. A strata that is consistently running deficits or dipping into the CRF for operating expenses is financially fragile.
Depreciation Report
Under the *Strata Property Amendment Act, 2020* (fully in force as of July 2027), most strata corporations must obtain an updated depreciation report every five years. These reports project the cost of replacing major common property components over 30 years and recommend CRF contribution levels.
A strata with a badly underfunded reserve and a looming roof replacement is a strata that may issue a special levy shortly after you move in.
Special Levies: The Hidden Cost
A special levy is a one-time charge on all owners to fund a major repair or expense that the CRF cannot cover. Special levies require a 3/4 vote and can be substantial — $10,000, $30,000, or more per unit for major work like parkade waterproofing or building envelope repairs.
Check the minutes for any proposed or approved special levies. If a levy has been approved but not yet collected, you could be on the hook as the new owner. Your lawyer can advise on whether the seller should be responsible for an approved levy.
Rental Restrictions
Some strata corporations have bylaws that restrict or prohibit rentals. If you plan to rent your unit — now or in the future — confirm the rental restrictions before you buy. A bylaw passed before January 1, 2010 can grandfather existing rentals, but a newer restriction can prevent you from renting even if other units in the building are rented.
Effective November 24, 2022, amendments to the *Strata Property Act* prohibited strata corporations from passing new rental restriction bylaws. However, bylaws already in place continue to apply.
Pet Restrictions
Strata bylaws can restrict pets by type, size, or number. A bylaw that says "no dogs over 25 lbs" is enforceable even if your neighbour has a Labrador. Check the bylaws carefully, and if in doubt, get written confirmation from the strata manager.
Parking and Storage
Confirm what parking stall and storage locker are included with the unit — and whether they are part of the strata lot, a limited common property designation, or a separate license. The distinction matters for what you actually own and whether the strata corporation can reassign those spaces.
What a Lawyer Reviews for You
Your BC real estate lawyer or notary reviews the title to the unit, the Form B, and the registered bylaws on title. They will flag any registered charges, easements, or liens that could affect your ownership. They will also handle the property transfer and file the Land Title Act documents on completion day.
If the strata document review reveals serious concerns — underfunded reserves, pending litigation, a history of building envelope problems — a lawyer can help you assess your options before you are committed.
Four Questions to Ask Before Removing Subjects
- Is the contingency reserve fund adequately funded relative to the depreciation report?
- Have any special levies been approved in the last two years — and is anything in the minutes suggesting one is coming?
- Are there any bylaw restrictions on rentals, pets, or renovations that affect my plans?
- Is the strata currently involved in any litigation?
If you cannot get satisfactory answers to all four, extending your subject period or walking away may be the right call.
This article is general information, not legal or tax advice. Meetings are by appointment only, by phone or secure video.