BC Realtor Strata Property Guide: Strata Documents, Special Levies, Depreciation Reports & Buyers' Due Diligence (2026)

Why Strata Due Diligence Is Different

When a buyer purchases a strata lot, they are buying two things simultaneously: the strata lot itself (the interior of the unit, and any parking or storage locker assigned to the lot) and a proportionate interest in the common property and common assets — the roof, mechanical systems, hallways, parkade, and any amenities. The strata corporation is responsible for maintaining and repairing common property, and it funds that work through monthly strata fees and the contingency reserve fund.

This dual ownership structure creates risks that have no equivalent in freehold transactions. A buyer cannot inspect the roof independently the way they can inspect a house roof — they must rely on the strata corporation's documentation, meeting minutes, and financial statements to understand the true condition of what they are collectively buying. And unlike a freehold property where a roof replacement is a known cost the buyer controls, a strata buyer may receive a special levy assessment months after closing with no recourse.

BC's Strata Property Act (SPA) provides significant protections — but it also gives strata corporations broad authority to levy special assessments, restrict rentals and pets, and amend bylaws by ¾ vote. A realtor who does not understand these mechanisms cannot meaningfully protect their buyer clients.

The 10 Strata Documents Buyers Must Review

Form B: The Single Most Important Strata Document

Form B is the Information Certificate issued by the strata corporation under Section 59 of the Strata Property Act. It is the single most critical document in a strata transaction because it discloses, as of the date of issue, the financial and compliance status of the specific lot being purchased.

Key items disclosed on Form B:

• Monthly strata fee — the current amount and what it includes
• Special levies — any amounts owing on the lot as of the certificate date; amounts levied but not yet collected also appear here and become the buyer's obligation
• Bylaw violations — any outstanding violation notices on the lot
• Parking and storage assignment — locker and stall designations and whether they are limited common property or personal property
• CRF balance — the total contingency reserve fund balance at time of certificate
• Rental restriction status — whether the strata has voted to restrict rentals and whether any hardship or grandfathering applies

A Form B is valid for 30 days from the date of issue. In a busy market, a Form B dated 6 weeks before completion may not reflect a special levy that was passed at a meeting 3 weeks ago. Realtors should request a fresh Form B if there is any gap between the subject removal date and completion date, or if strata minutes indicate a special levy vote was pending.

Important: amounts owing on the lot that appear on Form B — including special levies in arrears — transfer with the lot. If the seller has not paid a levy, the buyer becomes responsible for it at completion. This should be negotiated in the contract, either as a price adjustment or a condition requiring the seller to discharge all outstanding amounts before completion.

Depreciation Reports: How to Read and Advise

A depreciation report is a 30-year capital forecast for the strata's common property. Under BC's Strata Property Act, strata corporations with 5 or more lots must obtain a depreciation report every 3 years unless owners vote annually to waive the requirement by a ¾ majority. In practice, many older and smaller strata corporations have waived depreciation reports for years.

A depreciation report contains three sections:

1. Asset inventory — a complete list of common property components (roof, mechanical, elevators, parking structure, plumbing, electrical, balconies, common amenities, etc.) with installed date, estimated useful life, and current condition
2. Expenditure schedule — projected year-by-year replacement costs over 30 years in current dollars (sometimes inflation-adjusted)
3. Funding analysis — three funding scenarios: Scenario 1 (fully funded to recommended balance each year), Scenario 2 (threshold funded — minimum balance to avoid special levies), and Scenario 3 (projected — what happens at current contribution rates)

The key calculation for buyers is the per-unit levy exposure. If the depreciation report shows a $2.4 million roof replacement in 8 years and the CRF is projected to have $800,000 by then, the shortfall is $1.6 million. If your buyer's unit entitlement is 100/10,000 (1%), their exposure is $16,000. This is not a reason to walk away — but it is a reason to negotiate price or to ensure the current CRF contributions will improve before then.

Special Levies: What They Are and How They Work

A special levy is a one-time or multi-installment charge imposed on strata lot owners to fund capital repairs or projects that the contingency reserve fund cannot cover. Under the Strata Property Act, a special levy must be approved by a ¾ majority vote of strata lot owners at an Annual General Meeting (AGM) or a Special General Meeting (SGM). The levy resolution must specify the total amount, the purpose, and the payment schedule — whether paid in a lump sum or installments.

The critical point for buyers is timing: a special levy passed before completion but not disclosed on the Form B is the seller's responsibility. A levy passed after the Form B but before completion may or may not be disclosed — the seller has an obligation to notify the buyer of material changes, but this is not always honoured. For high-risk buildings (older construction, known deferred maintenance), buyers should request disclosure of any AGMs or SGMs scheduled between subject removal and completion, and should negotiate a clause requiring the seller to notify them immediately of any new levy.

If a special levy has been approved and announced but not yet collected, it will appear on the Form B as an amount owing on the lot. This amount becomes the buyer's obligation on completion unless the purchase contract explicitly requires the seller to pay it.

Contingency Reserve Fund Adequacy

The contingency reserve fund (CRF) is the strata corporation's savings account for capital repairs and replacements. Under the Strata Property Act, strata corporations must contribute at least 10% of the annual operating budget to the CRF each year, unless the CRF already exceeds that amount. In practice, 10% of operating budget is almost always insufficient for buildings with significant aging components.

When reviewing CRF adequacy, realtors should compare the current CRF balance against:

• The depreciation report's recommended balance — Scenario 1 or 2 balance for the current year. If the actual CRF is below Scenario 2, the building is underfunded relative to its capital needs.
• The 5-year capital expenditure forecast — sum the scheduled replacements from the depreciation report for the next 5 years. If the CRF plus projected contributions won't cover these, a special levy is likely.
• Per-unit CRF share — divide the CRF by the number of units as a rough metric. Metro Vancouver rule of thumb: a well-funded CRF in a 10-year-old building should be roughly $5,000–$10,000 per unit; a 20-year-old building $15,000–$25,000 per unit. Anything significantly below these figures warrants scrutiny.

Strata Bylaws and Restrictions: What Buyers Need to Know

Strata bylaws govern how owners use their lots and the common property. BC's Strata Property Act establishes default bylaws in Schedule of Standard Bylaws, but most strata corporations have amended or replaced them. The current bylaws must be filed in the Land Title Office, and a copy must be provided to buyers.

Rental Restrictions

A strata corporation can restrict or prohibit rentals by ¾ vote. Once a rental restriction bylaw is passed, it applies to new owners immediately — they cannot rent their unit even if they purchased it intending to do so. However, there are important protections for existing renters:

• A tenant living in the unit when the restriction passes is grandfathered for the lesser of the rental agreement term or 12 months
• A strata cannot restrict a hardship rental — an owner facing genuine financial hardship may apply to the strata council for a rental exemption
• The courts have interpreted "hardship" broadly; strata councils that deny reasonable hardship applications face tribunal exposure

For investor buyers, rental restrictions are a deal-breaker. Always verify the current rental restriction status in both the Form B and the bylaws — the Form B records whether restrictions exist and whether any exemptions or waivers are active for the specific lot.

Pet Restrictions

Strata bylaws can restrict pets by species, size, or number. However, s.123 of the Strata Property Act creates a statutory floor: a bylaw cannot prohibit a resident from keeping one small pet (typically interpreted as one cat or one dog) if the pet does not cause unreasonable noise, nuisance, or damage. Strata councils can set size limits (e.g., 20 kg maximum) but cannot have a blanket no-pets policy that eliminates all pets.

Buyers with pets should review the current pet bylaws carefully and determine whether their specific pet (species, breed, weight) is permitted. A buyer who closes without reading the pet bylaw and then receives an enforcement notice has limited recourse.

Age Restrictions

BC's Human Rights Code prohibits discrimination based on family status, including having children. However, the Code contains an exception for housing reserved exclusively for persons 55 years of age or older — what are commonly called "55+" strata buildings. To qualify for this exemption:

• The bylaw must restrict occupancy to persons 55 or older
• At least 80% of units must be occupied by at least one person 55 or older
• The strata cannot restrict families with children under 19 except in a valid 55+ building

Buyers under 55 or with children should verify the age restriction status before making an offer on any building marketed as age-restricted.

Reading Strata Council Minutes: 10 Red Flags

Strata council meeting minutes are the most under-read documents in a strata transaction and often the most revealing. BC realtors should advise buyers to request and read at minimum the last 24 months of council meeting minutes — including AGM minutes — before removing subjects.

Strata Insurance: What Buyers Need to Understand

Strata insurance has become a significant issue in BC following a wave of insurance premium increases beginning in 2020–2021. The strata corporation carries building insurance covering the structure and common property, but the coverage type and deductible significantly affect owner exposure.

Key insurance concepts for strata buyers:

• Replacement cost vs. actual cash value — replacement cost coverage pays to rebuild using current materials and labour; actual cash value deducts for depreciation. Most buyers assume replacement cost, but some older buildings have switched to actual cash value due to premium costs. Review the certificate carefully.
• Deductibles — strata deductibles have increased dramatically in BC, with many buildings now carrying $50,000–$250,000 deductibles on water damage claims. Most bylaws allow the strata to charge the unit owner responsible for a water event the full deductible amount. A buyer should have sufficient home owner's insurance (bare land strata coverage) to cover the strata deductible.
• Unit improvements — the strata's policy typically covers the unit to original construction standard. If a previous owner renovated (upgraded kitchen, flooring, fixtures), those improvements may not be covered by the strata policy and require separate owner's coverage.

Leaky Condo Due Diligence

BC's "leaky condo" crisis affected primarily buildings constructed between 1982 and 1998 using polymer-based exterior cladding systems (face-sealed stucco, EIFS, etc.) without proper drainage planes. When these systems failed, water infiltrated into wall cavities and caused extensive rot, mold, and structural damage. Remediation costs were severe — often $50,000–$150,000 per unit — and the crisis led to significant insurance reforms and the Home Protection Act (now New Home Warranty Act).

For buyers considering any BC building constructed in this era, realtors should:

• Determine whether a building envelope investigation or remediation has occurred — check council minutes and ask the strata management company directly
• Obtain copies of any building envelope reports
• If remediation was completed, verify the scope, date, and whether any subsequent warranties are still active
• If no investigation has been done, recommend commissioning a building envelope consultant before removing subjects — this is not a standard home inspector function
• Check whether the building's insurer applies a building envelope exclusion or surcharge — some insurers will not cover buildings from this era that have not been remediated

A fully remediated building from this era can be a good value purchase if the remediation was comprehensive and well-documented. An unremediated building of this era in deteriorating condition is one of the highest-risk strata purchases in BC.

New Construction Strata Considerations

Pre-sale and newly built strata properties (typically under 5 years old) have a different risk profile than resale strata:

• New Home Warranty Act coverage — 2 years on labour/materials, 5 years on building envelope, 10 years on structural defects. Buyers should verify warranty status and the enrolling company.
• No depreciation report required — buildings under 5 years old are exempt. Buyers rely on the developer's capital contribution schedule for CRF instead.
• Developer disclosure statement (REDMA) — pre-sale buyers receive a disclosure statement containing the phased strata plan (if applicable), estimated strata fees, proposed bylaws, and the developer's budget. Developers routinely underestimate operating costs in disclosure statements to keep fees artificially low in year 1; fees often jump 15–25% in years 2–3.
• Rescission right — under REDMA, a pre-sale buyer has a 7-day rescission right from the date they receive the disclosure statement (or an amendment to it). This right cannot be waived.
• Phased strata developments — if buying into a phased project, understand that common property and facilities described in the strata plan may not be completed. Subject removal on developer phasing timelines is a known risk.

How to Present Strata Risks to Buyers

Buyers often underestimate strata risk because monthly strata fees feel like the total cost — they do not see a potential $30,000 special levy as a risk until after they have moved in. Realtors who frame strata due diligence clearly protect their clients and themselves.

BC Strata Property Due Diligence Checklist

4 Advisory Scripts for Strata Conversations

When to Recommend Walking Away

Not all strata risks are quantifiable or fixable through price negotiation. BC realtors should advise buyers to walk away from a strata purchase when:

• Active building envelope remediation is underway with no certainty on scope or cost — the final levy cannot be quantified before completion
• The strata is involved in unresolved construction defect litigation that could yield a multi-million-dollar judgment against the strata, which would then be assessed as a special levy
• The depreciation report has been waived for 5+ years with no engineering reports available, and the building is 20+ years old with known aging components — the risk is unquantifiable
• The strata's insurer has declined to renew coverage or has added a building envelope exclusion — financing the purchase may be impossible or extremely expensive without qualifying insurance
• The buyer's intended use (rental, large pet, home office with client visits) is restricted by current bylaws and the restriction is deeply embedded in owner culture — even a bylaw amendment requires ¾ vote and takes months

Summary

Strata due diligence is not optional — it is the mechanism by which BC buyers understand what they are collectively purchasing and whether the strata corporation is financially capable of maintaining it. Realtors who guide buyers through Form B, depreciation reports, council minutes, and bylaw restrictions are providing genuine protective value that distinguishes them from transactional agents. Buyers who skip this step and close into a building with an underfunded CRF, a building envelope under investigation, or a pending remediation levy have limited recourse after the fact.

Make strata document review a standard part of your buyer representation workflow. The few hours it takes to understand a depreciation report or identify red flags in council minutes is among the highest-value services a BC realtor can provide.