BC Strata Corporation Governance: What Buyers and Realtors Need to Know (2026)
Over half of Metro Vancouver transactions involve strata properties — yet strata governance is one of the most complex and misunderstood areas for buyers and newer agents. This guide covers AGMs, special levies, depreciation reports, Form B, bylaws, and the key disclosures every realtor must understand.
How BC strata corporations are structured
Under the Strata Property Act (SPA), every strata corporation is a legal entity responsible for managing common property — the building exterior, parkade, elevators, hallways, amenity rooms, and any other shared spaces. The strata corporation is governed by a strata council (elected owners, typically 3–7 members) that manages day-to-day operations, hires the strata manager, and enforces bylaws.
The strata corporation has two funds: the operating fund for recurring expenses (insurance, maintenance, landscaping, utilities) and the contingency reserve fund (CRF)for major capital repairs.
Strata governance structure
| Body | Composition | Key powers |
|---|---|---|
| General meeting (AGM) | All strata lot owners | Approve budget, elect council, pass bylaws (3/4 vote), approve special levies |
| Strata council | Elected owners (3–7) | Enforce bylaws, manage operations, approve minor expenditures, hire strata manager |
| Strata manager | Licensed property manager | Day-to-day administration, financial records, AGM preparation, contractor management |
| Depreciation report professional | Engineer or inspector (external) | 30-year capital repair forecast, component inventory, CRF funding analysis |
The Form B Information Certificate
Form B is arguably the most important document in any strata transaction. Under Section 59 of the SPA, a strata corporation must provide Form B within 7 days of a written request from an owner. (Owners typically request Form B for the buyer during the subject period.)
Form B discloses: the strata lot's current monthly strata fees, any arrears owed by the lot, the operating fund and CRF balances, pending litigation, any approved special levies (paid and unpaid), and any unresolved bylaw contraventions against the specific lot.
Form B checklist — what to review
Practice tip
Form B is only a snapshot in time. If the seller obtained Form B at listing and closing is 45 days later, request a fresh Form B during the subject period. A special levy could have been voted on at a strata meeting between those dates.
Strata document package: what buyers need to review
In a strata purchase, the standard subject to strata document review condition gives buyers 7 days to review a package of strata documents. The documents buyers should request (and realtors should facilitate) include:
| Document | What to look for | Red flags |
|---|---|---|
| Form B | Fees, levies, CRF, litigation | Unpaid levies, litigation, low CRF |
| Last 2 years AGM minutes | Discussions, votes, issues raised | Ongoing disputes, deferred repairs, owner conflicts |
| Current bylaws | Rental restrictions, pet rules, renovation process | Strict rental limits if buyer plans to rent |
| Current budget | Operating fund vs. actual expenses | Budget deficit, deferred maintenance line items |
| Depreciation report | CRF adequacy, 5/10/30-year capital needs | Large upcoming repairs, CRF shortfall |
| Engineer/insurance reports | Building envelope, major deficiency orders | Outstanding remediation orders |
Depreciation reports: the capital health check
Since 2024, BC strata corporations with 5 or more lots are required to commission a depreciation report and renew it every 5 years — they can no longer waive this obligation. A depreciation report must be prepared by a "qualified person" (professional engineer, certified building inspector, or other approved designation) and must include:
- • A physical inventory of all common property components
- • Estimated remaining useful life for each component
- • Estimated future repair and replacement costs
- • Three 30-year CRF funding models (minimum funding, threshold funding, full funding)
- • The current CRF balance compared to recommended levels
Reading a depreciation report: key numbers
Current CRF balance
What the strata has saved today. Compare to the report's recommended balance — a large gap means elevated special levy risk.
5-year capital forecast
Major repairs expected within 5 years (building envelope, roof, mechanical upgrades). If the CRF can't cover these, owners will face special levies.
Annual contribution required
How much needs to go into CRF each year to fund future repairs. Compare to actual CRF contributions in the current budget.
Roof/envelope remaining life
Two highest-cost components. Roofs: 20–30 year life. Building envelopes: highly variable — many older BC condos have had costly envelope remediation.
Special levies: how they work
When the CRF doesn't have enough money for a needed repair, the strata corporation passes a special levy — a one-time assessment to all owners, calculated by unit entitlement (your proportional share of the building). Special levies require a 3/4 voteat a general meeting.
Special levy example: roof replacement
* Actual amounts vary by unit entitlement. Penthouse units with higher entitlement pay more; smaller units pay less.
Pending special levies approved before completion must be disclosed in Form B. However, a special levy being discussed at a strata council level (but not yet voted on) may not appear in Form B — which is why reviewing AGM minutes for the past 2 years is critical. Minutes will often show discussions about upcoming capital projects months before a formal vote.
Strata bylaws: rental restrictions and pet rules
Strata bylaws are among the most buyer-relevant governance documents — particularly for investors who plan to rent the unit, or for buyers with pets. Key bylaw areas:
| Bylaw area | What to check | Buyer impact |
|---|---|---|
| Rental restrictions | Cap on # of rentals, waitlist, prohibition | Investor buyer may be unable to rent (or wait years for approval) |
| Short-term rentals | Airbnb/VRBO prohibition or permit requirement | STR income strategy may be blocked entirely |
| Pet restrictions | Number, weight, breed restrictions | Dog-owning buyers may not qualify — essential to verify |
| Renovation approvals | Scope requiring council approval, timing restrictions | Major renos may require council permission and waiting periods |
| Age restrictions | 55+ buildings (legal under BC Human Rights Code) | Younger buyers and families with children may be ineligible |
Important: Bill 44 and rental restriction bylaws
As of January 1, 2023, BC legislation (Bill 44) prohibits strata corporations from passing new bylaws that restrict rentals or restrict the number of residents. However, existing rental restriction bylaws that were in place before this date may still be grandfathered. Always verify the current bylaw status — a strata may have bylaws on file that appear to restrict rentals but are no longer enforceable.
Annual General Meetings (AGMs)
Under the SPA, every strata corporation must hold an AGM within 2 months of the end of its fiscal year. Standard AGM agenda items include: approval of the previous year's financial statements, presentation and approval of the operating budget for the coming year, election of council members, and any owner-submitted resolutions (bylaw amendments, special levies, major capital projects).
Decisions requiring a 3/4 vote (75% of eligible voters at a general meeting): special levies, bylaw amendments, approval of contracts over the spending limit without competitive bids, and certain expenditures from the CRF. Decisions requiring a majority vote include election of council members and approval of the budget.
When reviewing AGM minutes for a buyer, look for: repair projects being discussed, owner complaints about management or council, financial deficit discussions, references to engineer reports or consultant recommendations, and any votes that were close or contentious (indicating a divided ownership group).
Realtor compliance obligations in strata transactions
Under BCFSA practice standards, realtors representing buyers in strata transactions must ensure their clients have adequate information to make an informed purchase decision. This creates practical obligations:
Buyer agent checklist — strata transaction
Request strata document package at time of offer (as a subject condition)
Facilitate buyer's review of Form B, bylaws, AGM minutes, budget, depreciation report
Flag rental restrictions for investor buyers before writing an offer
Flag pet restrictions for buyers with pets
Note unpaid special levies in Form B — advise buyer to get legal advice on assumption
Flag low CRF balance relative to depreciation report recommendations
Advise buyer to have strata documents reviewed by a strata-experienced lawyer
Document client's acknowledgment of any known material risks
How Magnate360 supports strata transactions
Magnate360's compliance workflows include strata-specific document tracking for all listing and buyer files. The platform automatically flags when strata document review deadlines are approaching, tracks Form B expiry, and stores all strata documents against the relevant contact or listing record for audit purposes.
The Forms Agent can pre-fill the Contract of Purchase and Sale strata-related clauses (strata document review subject, Form B timing, bylaw representation conditions) from listing data, reducing manual entry and the risk of omitted clauses on strata files.
Frequently asked questions
What is a Form B Information Certificate and why does it matter?
A Form B Information Certificate is a disclosure document prepared by the strata corporation that reveals the financial and legal health of the strata at the time of a transaction. It must be provided within 7 days of a written request from an owner. Key information in Form B includes: the amount of strata fees, any outstanding fines or levies against the specific strata lot, the total of the contingency reserve fund and operating fund, any pending or active litigation involving the strata, and any unresolved bylaw contraventions against the lot. Form B is only valid for a limited period — information can change quickly — so buyers should request a fresh Form B as close to completion as possible. Realtors must ensure buyers review Form B as part of their subject period due diligence.
What is a depreciation report and does every strata need one?
A depreciation report is a professional assessment of all common property — the building envelope, mechanical systems, roof, elevators, parking structure, and other shared components — that estimates the remaining useful life of each item and projects future repair and replacement costs over a 30-year horizon. As of 2024 BC regulations, most strata corporations with 5 or more strata lots are required to have a depreciation report prepared by a qualified person (usually a professional engineer or building inspector) and renewed every 5 years. Strata corporations can no longer vote to waive this requirement (previously allowed with a 3/4 vote). Buyers should always review the depreciation report — it reveals upcoming special levies or inadequate CRF funding. A strata without a current depreciation report is a red flag.
How do special levies work in BC strata properties?
A special levy is a one-time charge assessed to strata lot owners to fund a specific capital expense that the contingency reserve fund cannot fully cover — for example, a new roof, building envelope repairs, or elevator replacement. Special levies are approved by a 3/4 vote at a general meeting (with some exceptions). The amount each owner pays is calculated based on their unit entitlement — the proportional share established in the strata plan. Special levies can range from a few hundred dollars to tens of thousands per unit depending on the scope of the project. Pending or recently approved special levies that have not been paid must be disclosed in Form B. When representing buyers, always ask the strata manager whether any capital projects are being discussed that could lead to a special levy in the near future.
What are strata bylaws and how are they enforced?
Strata bylaws are the rules governing how owners and tenants must use and behave within the strata community. Standard areas covered by bylaws include: rental restrictions (some stratas limit rentals to a percentage of units), pet rules (size, number, breed restrictions), renovation approval processes, noise and nuisance rules, short-term rental restrictions (Airbnb), move-in/move-out procedures, and parking rules. Bylaws are enforced by the strata council, which can issue fines for contraventions — typically $200 per week per infraction after a warning. When a strata lot is sold, outstanding bylaw fines and unresolved contraventions must be disclosed in Form B and may need to be resolved before completion. Buyers should review the strata bylaws as part of subject period due diligence, particularly around rental restrictions and pet rules.
What is the contingency reserve fund and how much should it have?
The contingency reserve fund (CRF) is the strata corporation's savings account for major capital repairs and replacements. Under BC regulations, the CRF must be at least 25% of the annual operating budget (a minimum floor). However, the depreciation report will show the actual amount needed to fund projected capital work — and many strata CRFs are significantly underfunded relative to upcoming repairs. Adequate CRF funding is one of the most important financial indicators to evaluate when buying a strata property. A low CRF combined with aging building systems (roof, building envelope, mechanical) signals high special levy risk. A healthy CRF (above the depreciation report's recommended balance) indicates prudent strata management. The CRF balance is disclosed in Form B.
Manage strata compliance from one dashboard
Magnate360 tracks strata documents, Form B deadlines, and disclosure requirements for every file — so nothing falls through the cracks.