When you're buying a condo in British Columbia, you're not only buying the unit. You're also buying into the strata corporation.That means the building's finances, maintenance history, insurance, bylaws, planned repairs and unresolved problems can all matter to your purchase.This is why reviewing strata documents is one of the most important parts of buying a condo in Downtown Vancouver, North Vancouver, West Vancouver or elsewhere in BC.What Are Strata Documents?
Strata documents provide information about how the building is being operated and maintained. They can help a buyer understand both what has happened in the building and what may happen in the future. The documents available will depend on the property, but buyers commonly review materials such as:- Form B
- Strata council meeting minutes
- Annual General Meeting minutes
- Special General Meeting minutes
- Financial statements
- Annual budget
- Depreciation report
- Bylaws and rules
- Insurance information
- Information about special levies
Start With the Form B
The Form B Information Certificate provides important information about a strata lot and strata corporation.It should be reviewed carefully alongside the other documents rather than treated as the complete picture.A buyer should pay particular attention to information concerning amounts owing, parking and storage information where applicable, and other disclosures contained in the form.Read the Strata Minutes Carefully
Strata minutes are one of the best ways to understand what's happening inside a building.Don't only look for the word "leak." Look for recurring themes. For example, if several meetings mention:"water ingress""building envelope""plumbing investigation""engineering review""roof replacement""elevator modernization""insurance claim"those references may be connected.One isolated repair isn't necessarily alarming. Repeated discussion of the same problem over many months deserves closer attention.Look for Water and Building Envelope Issues
Water is one of the most important issues to watch for in strata buildings.Depending on the building, documents may mention:- Roof leaks
- Window leaks
- Balcony issues
- Parkade leaks
- Plumbing failures
- Water ingress
- Building envelope repairs
Understand the Contingency Reserve Fund
The contingency reserve fund, often called the CRF, helps the strata pay for expenses that occur less frequently than annual operating expenses.Don't judge the health of a strata corporation solely by looking at one CRF number. A larger building may require substantially more capital than a small building.Instead, consider the fund in combination with the building's age, anticipated projects, depreciation report and history of special levies.Read the Depreciation Report
A depreciation report is an important planning document.It looks at major common property and assets and estimates when repairs and replacements may be required and what they may cost. In BC, strata corporations with five or more strata lots are generally required to obtain depreciation reports on a five year cycle.A depreciation report isn't necessarily a list of work that must happen on the exact dates shown. It is a planning tool.As a buyer, I want to compare the report with the minutes and financial planning. If the report identifies a major project and the minutes are already discussing it, that's particularly relevant.What Is a Special Levy?
A special levy is money collected from owners in addition to regular strata fees for a specific purpose.If you're buying a condo, you need to understand whether there are:- Approved special levies
- Proposed special levies
- Major projects under discussion
- Engineering reports that may lead to future expenses
Strata insurance has become an important part of condo due diligence.Review the insurance information and understand the building's deductibles. You should also speak with your own insurance professional about appropriate coverage for your individual unit.
Read the Bylaws
Buyers sometimes focus so heavily on financial documents that they forget about bylaws. But bylaws can directly affect how you use your home.Look for rules relating to:- Pets
- Rentals
- Renovations
- Smoking
- Barbecues
- Flooring
- Move in procedures
- Parking
- Storage
- Short term accommodation
Look for Legal Disputes and Claims
Minutes and other documents may refer to litigation, Civil Resolution Tribunal matters, insurance claims or disputes involving owners, contractors or neighbouring properties.These don't automatically mean you shouldn't buy. They do mean you should understand the issue. If necessary, seek appropriate legal advice before removing subjects.Don't Read Documents in Isolation
This is one of the biggest lessons I give condo buyers.One sentence can sound frightening without context. Similarly, one reassuring sentence can hide a much larger issue.Read documents chronologically and look for connections.Problem → Investigation → Recommendation → Approval → Repair → Follow-upIf you can follow that chain, you can understand the story much better.Red Flags I Pay Attention To
Some things that cause me to investigate further include:- Recurring leaks
- Repeated plumbing failures
- Major upcoming capital projects
- Engineering reports
- Large insurance claims
- Increasing insurance deductibles
- Repeated special levies
- Low funding relative to upcoming work
- Litigation
- Significant unresolved owner complaints
- Major projects repeatedly postponed
