BC Realtor Strata & Condo Guide: Depreciation Reports, Special Levies, Form B & Strata Documents (2026)

Why Strata Literacy Is Non-Negotiable for BC Realtors

Strata properties — condos, townhouses, bare-land stratas, and mixed-use developments — account for roughly 55% of residential transactions in Greater Vancouver and the Fraser Valley. Yet strata law is its own discipline under BC's Strata Property Act, with its own documents, timelines, obligations, and liability traps.

A realtor who cannot fluently read a depreciation report, spot a Form B red flag, or explain a special levy to a panicked buyer is a liability risk. BCFSA enforcement actions regularly include failure-to-disclose claims tied to strata documents. This guide makes you fluent.

The Strata Document Package: What You Need and When

When a buyer goes firm on a strata property, they need a complete document package to make an informed decision. Here is every document, its source, and its purpose:

Document	Source	Cost	What It Tells You
Form B (Information Certificate)	Strata corporation / property manager	$35–$100	Strata fees, CRF balance, special levies, violations, litigation
Strata Plan	Land Title Office	$10–$25	Lot dimensions, common property, limited common property
Rules & Bylaws	Strata corporation	Free/nominal	Pet rules, rental restrictions, move-in/out rules, parking
Depreciation Report	Strata corporation	Free (should be provided)	30-year repair forecast, CRF adequacy
AGM & SGM Minutes (2 years)	Strata corporation	Free/nominal	Issues discussed, votes taken, problems raised
Operating Budget (current)	Strata corporation	Free	Monthly fee breakdown, reserve contributions
CRF Contributions (5 years)	Strata corporation	Free	History of reserve fund contributions
Insurance Certificate	Via Form B / broker	Free	Building coverage amount, deductibles, coverage gaps
Engineering Reports (if any)	Strata corporation	Free/nominal	Envelope, structural, mechanical assessments

Pro tip:Request all documents simultaneously the moment subjects are accepted — don't wait. Strata managers have 7 days to provide Form B, and some take the full 7. Start the clock immediately.

Form B Deep Dive: Reading Every Line

Form B is the most important single document in a strata transaction. Here is what each section means and what to flag:

Section 1: Strata Lot Information

Confirms the strata lot number, unit entitlement (the percentage share of common expenses), parking stall, and storage locker designations. Cross-reference with the title — limited common property (LCP) like parking and storage appears on title but is governed by the strata plan. A parking stall labeled "LCP" is more secure than one merely "allocated" by bylaw, which could be reassigned.

Section 2: Monthly Strata Fees

Shows the current monthly strata fee. Compare to the operating budget to understand what is included. Fees that seem low relative to building age are a red flag — either the strata is underfunding the CRF, or a special levy is coming.

Section 3: Money Owing by the Strata Lot

This is critical.Any strata fees in arrears, special levies unpaid, or fines outstanding travel with the unit. The buyer's conveyancing lawyer will want this cleared by the seller — but if your client misses it, they inherit the debt at completion.

Section 4: Contingency Reserve Fund (CRF)

Shows the CRF balance as of the report date. There is no legislated minimum, but industry guidance suggests a CRF of at least 25% of one year's operating budget is the floor for a "healthy" fund. Compare the CRF balance against the depreciation report's recommended funding level.

Section 5: Pending or Approved Special Levies

Red flag territory. An approved but unpaid special levy is a lien that transfers to the buyer. A pending special levy (proposed but not yet voted on) is a financial risk — it may pass at the next AGM after your client takes possession. Both require disclosure and should be factored into the purchase price or made a condition of closing.

Section 6: Bylaw Contraventions

Lists any outstanding bylaw violation notices against the unit. Common issues: unauthorized renovations (no strata council approval), unauthorized pets, unapproved suite conversions. These must be resolved by the seller before or at completion.

Section 7: Litigation

Discloses any legal action the strata corporation is a party to — as plaintiff or defendant. Active litigation can freeze the CRF, delay repairs, and affect insurance renewals. A strata suing its developer for deficiencies is less concerning than one being sued by an owner for negligence.

Depreciation Reports: What They Mean and How to Read Them

A depreciation report is a professional forecast of a strata's major repair and replacement costs over the next 30 years. Prepared by a qualified engineer or reserve fund planner, it contains three funding scenarios: no-growth, threshold, and full-funding. Healthy stratas aim for full-funding.

Component Inventory

The report lists every major component of the building — roof, elevators, hot water systems, parkade membrane, building envelope, hallway flooring, common area HVAC, irrigation systems — with estimated remaining useful life (RUL) and replacement cost.

Component	Typical Lifespan	Red Flag RUL	Avg. Replacement Cost
Flat roof membrane	20–25 years	< 5 years	$8–$25/sq ft
Elevator (cab + mechanical)	25–30 years	< 5 years	$150K–$400K/cab
Building envelope (rain-screen)	30–40 years	< 10 years	$50K–$150K/unit equiv.
Domestic hot water system	15–20 years	< 3 years	$20K–$80K
Parkade membrane & drainage	20–25 years	< 5 years	$30–$60/sq ft
Common area windows	30–40 years	< 8 years	$800–$2,000/window
Hallway carpet / flooring	10–15 years	Already overdue	$15–$40/sq ft
Fire suppression system	25–30 years	< 5 years	$50K–$200K

The Three Funding Scenarios

Every depreciation report models three CRF contribution scenarios:

No-growth: Contributions stay flat at current levels. Usually creates a funding shortfall within 10 years — a warning sign.
Threshold: Minimum contributions needed to avoid the CRF going negative. This is the floor, not the target.
Full-funding: Contributions needed to fund all projected expenses without special levies. Healthy stratas follow this model.

If the strata is operating below threshold contributions — visible in the operating budget — a special levy is almost inevitable. Price accordingly.

The CRF Adequacy Test

A rough rule: compare the current CRF balance to the depreciation report's recommended CRF balance for the current year. If the strata is less than 70% funded relative to the full-funding scenario, treat it as a risk. Under 50% funded is a serious red flag. Under 25% funded means special levies are likely imminent.

AGM and SGM Minutes: The History the Documents Don't Tell You

Bylaws and Form B show the current state. AGM and SGM minutes show the history — arguments, controversies, deferred decisions, and problems the strata has been aware of but not resolved.

What to Look For in Minutes

Red Flag in Minutes	What It Means	Buyer Action
Repeated discussion of water ingress or leaks	Envelope or plumbing failure — may indicate denied insurance claims	Get engineering report, check insurance history
Deferred major repairs year over year	Strata is underfunded and delaying — future levy risk	Check CRF vs. depreciation report
Owner disputes and tribunal applications	Dysfunctional strata council — legal costs deplete CRF	Assess litigation listed on Form B
Unsuccessful votes for CRF increases	Owners resistant to adequate contributions — funding shortfall likely	Stress-test buyer's budget for potential levies
Insurance deductible increases or coverage dropped	Claims history or uninsurable risk (e.g. water damage)	Review current insurance certificate
Special general meetings called between AGMs	Emergency repairs or conflict — unusual for healthy stratas	Understand the trigger for the SGM
New rental restrictions voted in	Limits buyer's exit options if they need to rent later	Check rental disclosure statement exemptions
Bylaw amendments restricting renovations	Future renovation approval process may be onerous	Review renovation bylaw in detail

Strata Bylaws: The Rules Your Client Will Live Under

Bylaws are the rules of the strata community. They govern pets, rentals, renovations, parking, moving hours, noise, and dozens of other daily living matters. Buyers routinely discover post-purchase that the strata bans dogs over 15 kg, prohibits short-term rentals, or requires council approval for any flooring change. These are not defects — they are disclosed bylaws your client failed to read.

Top Bylaw Provisions to Review for Every Buyer

Bylaw Category	Key Questions	Buyer Impact
Rentals	Is renting permitted? Any rental cap? Short-term rental (Airbnb) allowed?	Investment buyers: rental restrictions kill yield
Pets	Number, size, breed restrictions? Are cats and dogs both permitted?	Pet owners: non-compliance = bylaw fines, forced removal
Renovations	Council approval required for flooring, plumbing, electrical?	Buyers wanting to renovate: approval timelines add months
Move-in/move-out	Booking required? Elevator deposit? Hours restricted?	Inconvenience and cost — factor into possession planning
Smoking / vaping	Building-wide ban? Applies to balconies?	Smokers will face fines — non-negotiable
EV charging	Are EV charger installations permitted or prohibited?	EV owners may be unable to charge at home
Parking and storage	Rules for bike storage, additional vehicles, commercial vans?	Tradespeople or multi-car families: parking conflicts
Short-term rentals	Many stratas ban Airbnb/VRBO — explicitly or via "residential use only" language	Investor buyers: may void rental strategy entirely

The Rental Disclosure Statement

Sellers of strata properties where rentals are restricted must provide a Rental Disclosure Statement if the unit is currently rented or was previously rented under an exemption. This is a separate disclosure from Form B. Missing it is a compliance failure under the Real Estate Development Marketing Act (REDMA) — and your buyer could face an unexpected eviction process.

Special Levies: The Transaction Killer That Isn't Always One

A special levy is a one-time assessment on strata owners to fund an expense the CRF cannot cover. They range from $500 for a common area repair to $150,000+ for a full building envelope replacement. Here is how to handle them in transactions:

Special Levy Scenarios in Transactions

Scenario	Who Pays	Negotiation Approach
Approved levy, seller has not paid — due before completion	Seller — must be paid at completion via trust adjustment	Conveyancing lawyer handles via statement of adjustments
Approved levy, due after completion date	Buyer (follows the lot)	Negotiate a price reduction equal to buyer's share of the levy
Pending levy (not yet voted on) — AGM before completion	Unknown — could be buyer or seller	Subject condition: 'subject to no special levy being approved before completion'
Pending levy — AGM after completion	Buyer is exposed	Disclose risk, advise buyer to budget for possibility, price it into offer
Special levy for litigation settlement	Usually split among all owners	Review litigation status on Form B; assess probability of resolution
Levy installment plan (some stratas allow)	Monthly over time — buyer takes over installments	Confirm installment terms and duration; factor into carrying cost calculation

Strata Insurance: The Hidden Deductible Risk

Strata corporations carry building insurance — but deductibles have exploded in recent years, particularly for water damage. A single unit dishwasher leak can trigger a $25,000–$100,000 strata insurance deductible. The strata will pursue that deductible from the owner whose unit caused the damage.

What to Check on the Insurance Certificate

Coverage amount: Must equal full replacement cost of the building. If the building is underinsured, owners bear the gap.
Water damage deductible: Standard used to be $5,000–$10,000. Some stratas now carry $50,000–$100,000 deductibles due to claims history. This is the most common strata insurance red flag in Metro Vancouver.
Earthquake deductible: Often 5–10% of building replacement value — can be $500,000+ for a mid-rise. Owners should carry unit owner policies to bridge this gap.
Exclusions: Older buildings with aluminum wiring, knob-and-tube, or EIFS stucco (synthetic stucco) may have coverage exclusions that void the policy for related claims.

Advise every strata buyer to purchase strata unit owner's insurance that covers: the deductible assessment from the strata corporation, betterment coverage (upgrades to their unit beyond standard specifications), and personal liability.

Representing Sellers in Strata Transactions

Strata sellers have their own disclosure obligations and transaction mechanics. Here is what you need to manage:

Seller's Strata Disclosure Checklist

✅ SDIS (Strata/Condo section of SDIS): Disclose known defects, water damage history, strata disputes, and bylaw violations.
✅ Rental Disclosure Statement: Required if the unit was ever rented under a rental disclosure exemption (grandfathered before a rental restriction bylaw was passed).
✅ Special levy disclosure: Disclose any known pending or approved special levies on the SDIS — even if not yet on Form B.
✅ Strata fee arrears: Confirm with the seller whether they are current — arrears transfer to buyer if not cleared.
✅ Unauthorized renovations: Seller must disclose any renovations done without strata council approval. These may require retroactive approval or reversal at seller's cost.

Strata Move-Out and Status Certificate Timing

Order Form B as soon as the listing agreement is signed, not after the offer comes in. A seller who knows their Form B details (especially any outstanding arrears, violations, or levies) can resolve issues before they kill a deal. Surprises on Form B at the offer stage give buyers ammunition to renegotiate.

Professional Strata Document Review Services

For large or complex stratas, recommend professional strata document review services. These services employ ex-strata managers and engineers who can review the full document package in 24–48 hours and provide a written summary of red flags.

Service	Cost Range	Turnaround	Best For
Realtor self-review	$0	1–3 hours	Experienced realtors, simple stratas
Strata document review service (e.g. BAIRD, CondoClear)	$150–$350	24–48 hours	Complex stratas, large buildings, buyer peace of mind
Strata lawyer review	$500–$1,500	2–5 days	Litigation risk, unusual bylaw provisions, high-value purchases
Certified reserve fund planner review	$300–$600	2–5 days	Underfunded stratas, aging buildings, large special levies

Client Scripts for Strata Conversations

Script 1: Explaining the Document Package to a First-Time Condo Buyer

"When you buy a condo in BC, you're not just buying the unit — you're buying into a strata corporation. That means you co-own common areas and share costs with every other owner. Before we remove subjects, I need to get you a package of documents: Form B, the depreciation report, the last two years of meeting minutes, and the bylaws. I'll walk you through the highlights, but I recommend we also use a professional review service — it costs about $250 and gives you a second set of expert eyes in 24 hours. The $250 is cheap insurance against a $25,000 special levy surprise."

Script 2: Raising a CRF Red Flag Without Alarming the Buyer

"Here's what I'm seeing in the depreciation report: the roof has about 6 years of useful life left, and the CRF is sitting at $180,000. The depreciation report recommends $320,000 to be on track for full funding. That's a $140,000 gap across 80 units — roughly $1,750 per unit if they had to make it up tomorrow. They won't do it tomorrow, but this increases the likelihood of a special levy or a significant fee increase in the next few years. I'd want to price this into our offer — let's talk about the number."

Script 3: Handling a Pending Special Levy

"The minutes mention that the strata council is proposing a $45,000 levy per unit for the parkade membrane — that vote happens in three weeks, which is after our completion date. We have two options: make the offer conditional on no special levy being approved before completion, which the seller may not accept in this market, or we negotiate a price reduction of $45,000 to account for the risk. I'd lean toward the price reduction — it's cleaner and it keeps the deal together. What's your preference?"

Script 4: Setting Expectations with a Strata Seller

"Before we list, I want to pull a fresh Form B so we know exactly what buyers will see. If there are any arrears or violations, we want to clear those before they appear on a buyer's Form B and trigger a renegotiation at the worst possible time. I'm also going to pull the latest depreciation report — if buyers ask me whether the CRF is adequately funded, I want to have an honest answer ready. Buyers who get surprises on strata documents either walk or renegotiate. We want neither."

Common Strata Transaction Mistakes (and How to Avoid Them)

Requesting documents too late: Strata managers have 7 days to provide Form B. Request everything the moment subjects are accepted.
Only reading Form B and skipping the minutes: Form B is a snapshot. Minutes reveal the pattern of problems over time.
Ignoring the depreciation report's funding scenarios: The current CRF balance is meaningless without comparing it to the recommended funding level.
Failing to check rental restrictions: A buyer planning to rent the unit cannot be bound by a bylaw their realtor didn't flag.
Not advising buyers to get strata unit insurance: One water claim without unit insurance can cost a buyer $50,000+ in deductible assessment.
Assuming the subject condition covers everything: A "subject to strata document review" condition only protects your buyer if you actually review the documents and explain what you found.

FAQ

What is a depreciation report and why does it matter for condo buyers?

A depreciation report is a 30-year financial forecast of a strata corporation's major repair and replacement costs — roofs, elevators, plumbing, envelope. Required for most BC stratas with 5+ units under the Strata Property Act. It reveals whether the contingency reserve fund (CRF) is adequately funded. An underfunded CRF is a red flag because buyers face future special levies.

What is Form B and what must it disclose?

Form B (Information Certificate) must disclose: current strata fees, amounts owed by the unit, CRF balance, pending or approved special levies, outstanding bylaw violations related to the unit, pending litigation, and insurance details. Always get it as close to subject removal as possible.

How long does a buyer have to review strata documents in BC?

The Strata Property Act gives buyers 7 days to review strata documents once received. In practice, negotiate a subject condition with at least 7–10 days and recommend a professional review service for complex stratas.

What is a special levy and when can a strata call one?

A special levy is a one-time charge to fund expenses not covered by the operating budget or CRF, passed by 3/4 vote at a general meeting. Approved but unpaid levies travel with the unit — if the seller has not paid, the buyer inherits the obligation after title transfer.

Are all BC stratas required to have a depreciation report?

Stratas with 5+ lots must have one (renewed every 5 years). Stratas with fewer than 5 lots are exempt. Stratas can defer by 3/4 annual waiver vote — increasingly rare. A strata without a current depreciation report is a major red flag.