Question 1

What is a Strata Corporation?

Accepted Answer

When you buy a condo, you're buying two things: your individual unit, and a share of the common property (hallways, roof, elevators, parking). The strata corporation (BC) or condominium corporation (Ontario) is the legal entity that manages everything outside your front door. Every owner is automatically a member. You pay monthly strata fees (common expenses) to fund maintenance, insurance, and a reserve fund. You vote on major decisions at the Annual General Meeting (AGM). A volunteer council of 3–7 owners runs day-to-day operations. The problem: these volunteers manage buildings worth $50M–$500M with minimal governance training and no fiduciary insurance requirement. In Ontario, directors must now complete mandatory CAO training within 6 months of election (Bill 214, 2024) — but BC still has no training requirement.

Question 2

The Contingency Reserve Fund (CRF)

Accepted Answer

Under the BC Strata Property Act (s.92), every strata must contribute at least 10% of its annual operating budget to the CRF. This fund covers unexpected repairs to common property — a broken elevator, roof leak, or pipe burst. What to look for: Is the CRF balance healthy relative to building age and size? Has the strata been withdrawing from the CRF to cover operating shortfalls? A CRF that's been raided is a major red flag — it means future owners may face special levies. Important: Since 2023-2024, depreciation reports are now mandatory for stratas with 5+ units. The CRF contribution should align with the depreciation report's recommendations. If the strata is contributing the bare minimum 10% while the depreciation report recommends more — that's underfunding. Our data: Buildings with CRF issues are significantly more likely to appear in tribunal disputes, particularly around repair boundary and special levy disagreements.

Question 3

Reserve Fund Studies

Accepted Answer

Ontario requires a reserve fund study every 3 years (Condo Act s.94) — it cannot be waived. A qualified professional must assess all major building components, their remaining useful life, and project a 30-year cash flow plan. If the study finds the reserve fund inadequate, the board MUST implement a plan to bring it to adequacy within 120 days and issue a Notice of Future Funding to all owners. Critical difference from BC: Ontario boards can levy special assessments WITHOUT an owner vote — courts have upheld this under s.81. The main check on this power is the 15% requisition right (s.46), where owners of 15%+ of units can force a meeting to challenge it. What to look for: References to the reserve fund study, any discussion of underfunding (>20% shortfall is a red flag), and whether the board is following the study's contribution schedule.

Question 4

Special Levies & Assessments

Accepted Answer

When the reserve fund can't cover a major expense, the strata issues a special levy (BC, requires 3/4 vote — SPA s.108) or special assessment (Ontario — board can levy WITHOUT owner vote). This is a critical difference: In BC, owners get a vote. In Ontario, the board can impose costs unilaterally. One special levy in a building's history is normal — buildings age and need major work. Multiple special levies in quick succession is a warning sign that the building is chronically underfunded. What to look for: Any mention of special levies/assessments, their amounts, payment schedules, and the underlying reason. Also look for discussions about upcoming major repairs that might trigger a levy.

Question 5

Depreciation Reports — Now Mandatory

Accepted Answer

As of 2023-2024, BC depreciation reports are MANDATORY for stratas with 5+ units. The previous option to waive by 3/4 vote at the AGM has been eliminated. The report identifies every major building component (roof, plumbing, elevator, building envelope), estimates its remaining life, and projects replacement costs over a 30-year horizon. It must be prepared by a qualified professional and updated every 3-5 years. If you see old minutes referencing a "motion to waive depreciation report" — that's no longer legally possible. If a strata still doesn't have a current depreciation report, that's a compliance violation and a serious red flag. Our data: Buildings that historically deferred depreciation reports tend to have higher rates of repair boundary disputes at tribunal.

Question 6

Rental Restrictions — Removed in BC

Accepted Answer

Under Bill 44 (2024), BC stratas can no longer restrict rentals. Bylaws that prohibit or limit long-term rentals are void and unenforceable. Short-term rental restrictions (Airbnb-style) are still permitted — stratas can regulate these. Age restrictions (55+) also remain legal. What this means for buyers: If you're buying as an investor, rental restrictions are no longer a concern in BC. If you see old bylaws referencing rental caps or restrictions, they have no legal force. In Ontario, rental restrictions by condo corporations have never been as common, but boards can pass rules affecting rentals. Check the declaration and by-laws.

Question 7

Your Right to Records

Accepted Answer

In BC, owners have a legal right to inspect strata records (SPA s.35-36). In Ontario, the Status Certificate (s.76) must be provided within 10 days for a fee capped at $100 — and the corporation is legally liable for its accuracy. Ontario's Status Certificate is far more comprehensive than BC's Form B — typically 200+ pages, including audited financials, minutes, reserve fund study, insurance, and all governing documents. Our tribunal data tells a concerning story: 108 cases where owners were denied records they're legally entitled to. In every tagged case, the strata corporation was found responsible. Yet $0 in penalties were imposed — the law has no teeth on enforcement. If your documents reference disputes about access or delays, that's a governance red flag.

Question 8

Insurance & Deductibles

Accepted Answer

The strata must insure common property at full replacement value. But the critical number for buyers is the deductible — the amount the strata (and potentially individual owners) must pay before insurance kicks in. Deductibles have been skyrocketing across Canada. Some buildings now have $250K+ deductibles for water damage. If your unit causes a leak that damages units below, you could be personally liable for the deductible amount (up to regulated limits in BC). Both provinces now require stratas to clearly disclose insurance and deductible information to owners annually. What to look for: Insurance renewal discussions, deductible amounts, any mentions of claims or premium increases. Rising premiums often lead to fee increases.

Understanding Strata Governance

What Actually Goes Wrong in Strata Buildings

BC (BCCRT)

Ontario (ONCAT)

Strata Law — What You Need to Know

Minutes Decoder

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