Encyclopedia
Strata corporation
The legal entity made up of all owners in a strata.
For example: A buyer reviews strata corporation minutes. (Illustration only, not a real deal.)
Official source: Strata Property Act (BC Laws)
Example only, not a real client. Say you are buying a commercial strata unit for your clinic. Before removing subjects, you read the strata’s bylaws, minutes and depreciation report. You find a large repair project coming and use that to negotiate the price.
What I’d tell a friend
Read the strata documents before you buy a strata unit. They tell you about upcoming costs and rules that affect your business.
Why it matters to you
Its decisions on bylaws, fees and repairs affect what you can do and what you pay. A poorly run strata can cost owners money through levies and disputes, so read the minutes before you buy.
How to use it in your deal
Buyers should review the strata corporation's documents before removing subjects: Form B, bylaws, rules, minutes for the past two years, financial statements, budget, depreciation report and insurance certificate. Look for upcoming repairs, levies, lawsuits and bylaw fines.
Owners should attend annual general meetings, vote on budgets and keep an eye on reserve funding. Councils must follow the Strata Property Act on meetings, voting and records. Commercial stratas may have sections for different uses, with separate budgets and decisions. Strata corporations can sue and be sued, and owners may share the cost of judgments. Tenants in strata units must follow bylaws too.
The Civil Resolution Tribunal handles many disputes at low cost. Many stratas hire a licensed strata manager, who must be licensed by BC Financial Services Authority (BCFSA). Ask the manager how quickly they answer owners, and read a recent AGM package. Ask for the depreciation report and the last two years of minutes up front.
Mistakes I see
Skipping document review. Not attending meetings. Ignoring lawsuits.
In BC and Vancouver
The Strata Property Act governs strata corporations.
Official sources: Strata Property Act (BC Laws) · Strata housing (Government of BC) · BC Financial Services Authority
What it is
A strata corporation is made up of the owners of the units in a strata property. It manages common property, sets bylaws and collects strata fees through an elected council.
Commercial and mixed-use stratas follow the same basic rules as residential ones under BC’s Strata Property Act, with some differences.
What to review
Ask for bylaws, recent minutes, financial statements, the contingency reserve fund balance and any depreciation report.
Check that bylaws allow your use, signs and hours. Ask your lawyer to review anything unclear.
Questions to ask before you sign
- What do the minutes show?
- Are levies planned?
- Is there litigation?
- How is it managed?
Keep reading
Related terms: Strata Property Act, Form B
- What BC regulator decisions teach buyers, sellers, landlords and tenants
- Buying or leasing a commercial strata unit in BC
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.