Purchasing a strata property in British Columbia offers numerous benefits, including shared amenities and reduced maintenance responsibilities. However, it’s essential to understand the unique aspects of strata ownership, especially in light of recent legislative changes. Here are some key considerations for prospective buyers:​

Review Strata Documentation Thoroughly

Strata documents provide critical insights into the property’s management, financial health, and community rules. Essential documents include:​

• Form B: Information Certificate: Offers details on the strata corporation’s financial status, pending lawsuits, and insurance coverage.​
• Bylaws and Rules: Outline the regulations governing the strata community, such as pet restrictions, age limitations, and renovation guidelines.​
• Depreciation Reports: Assess the condition and anticipated maintenance costs of common property over a 30-year period.​

Thoroughly reviewing these documents helps identify potential issues and ensures the property aligns with your expectations.​

Understand Recent Legislative Changes

Recent amendments to the Strata Property Act have introduced significant changes:​

• Age Restriction Bylaws: As of November 24, 2022, strata corporations are permitted to adopt bylaws restricting ownership or residency based on a minimum age of 55 or older. This change aims to increase housing options for seniors. Prospective buyers should verify if such bylaws are in place, as they can impact residency eligibility.​
• Rental Restriction Bylaws: Effective the same date, strata corporations are no longer allowed to enforce bylaws that restrict or prohibit rentals. This amendment is designed to increase rental housing availability. However, short-term rental restrictions, such as those prohibiting rentals of less than 30 days, remain enforceable.
• Depreciation Report Requirements: Effective July 1, 2024, strata corporations with five or more lots must obtain depreciation reports every five years. Previously, strata corporations could defer these reports through a 3/4 vote, but this is no longer permitted. ​
• Qualified Professionals for Depreciation Reports: Starting July 1, 2025, depreciation reports must be prepared by qualified professionals, including engineers, architects, and certified reserve planners.
• Developer Contributions: For new strata corporations formed between July 1, 2024, and June 30, 2027, developers are required to contribute funds toward the cost of the first depreciation report. ​

Understanding these changes is crucial, as they impact the financial planning and obligations of strata owners.​

Assess the Strata’s Financial Health

Evaluate the strata corporation’s financial statements and contingency reserve fund (CRF). A well-funded CRF indicates preparedness for future repairs and maintenance, reducing the likelihood of unexpected special levies.​

Examine Bylaws and Rules

Strata bylaws can significantly affect your lifestyle. For instance, some strata corporations have age restrictions or prohibit certain activities. Ensure these regulations align with your personal and family needs.​

Investigate Insurance Coverage

Review the strata corporation’s insurance policy to understand coverage limits and deductibles. This helps determine potential liabilities and the necessity for additional personal insurance.​

Consult with Professionals

Engage with real estate professionals and legal advisors to navigate the complexities of strata ownership. They can provide valuable insights into the implications of strata documents and recent legislative changes.​

By diligently reviewing strata documents and staying informed about legislative developments, you can make a well-informed decision when purchasing a strata property in British Columbia.​ If you need assistance or have any questions, our Real Estate Law team is here to help.