Strata Documents to Review Before Buying a Condo: A BC Buyer’s Checklist

A depreciation report is a 30-year forecast of a strata corporation’s anticipated repair and replacement costs for common property — things like the roof, elevator, parkade membrane, plumbing stack, and exterior cladding. In BC, most strata corporations with five or more units are required to obtain one. When reviewing it, check when the report was prepared (anything older than three years is stale), what major expenditures are projected in the next five to ten years, and whether the strata’s recommended funding scenario is actually being followed. A well-funded strata will show a CRF balance that tracks closely with the report’s preferred scenario. A strata that consistently elects the minimum funding option is quietly passing future repair costs onto current and future owners. If there’s no depreciation report at all — and the strata voted to waive it — that’s a red flag in itself, particularly for older buildings where capital repairs are almost certain.

The contingency reserve fund (CRF) is the strata’s savings account for major repairs. A healthy CRF means the strata can handle a significant repair — say, a roof replacement or elevator overhaul — without immediately levying owners for a lump sum payment. When reviewing the CRF, compare the current balance against what the depreciation report recommends for that year. A CRF that’s significantly underfunded relative to the recommended balance is a warning sign that a special levy may be coming. Also look at the annual contribution rate: is the strata consistently increasing contributions to keep pace with aging infrastructure, or has it kept contributions flat for years to keep monthly fees low? Low strata fees can feel attractive, but if they’re achieved by starving the reserve fund, you may be buying into a future assessment. Ask your REALTOR® to help you contextualize the CRF balance for the building’s age and size.

The last two years of Annual General Meeting (AGM) and Special General Meeting (SGM) minutes are often the most revealing documents in the entire package. These minutes show you what owners are actually arguing about, what repairs have been authorized or deferred, what engineering concerns have been raised, and whether council is proactive or reactive in managing the building. Look for recurring complaints — a leak that appears in three consecutive sets of minutes signals a problem that hasn’t been fixed. Look for motions that were defeated: if owners voted against a necessary repair because they didn’t want the assessment, that repair still needs to happen eventually. Watch for mentions of litigation, bylaw enforcement disputes, or contentious relationships between council and owners. These minutes also tell you about rental and pet bylaw changes that may have been passed recently and haven’t yet made it into the formal bylaw document, which is why reading both is essential.

The strata’s bylaws and rules govern daily life in the building: how many pets you can have and what size, whether you can rent your unit and under what conditions, short-term rental restrictions, noise and renovation hours, parking regulations, and much more. BC’s Strata Property Act sets default bylaws, but most stratas have amended them — sometimes significantly. Before buying, confirm that your intended use of the unit is permitted. If you plan to rent it out, check whether the strata has a rental cap or a complete rental prohibition. If you have a large dog, verify the pet bylaw explicitly. Regarding special levies: any levy that has been passed but not yet fully collected will appear on the Form B and may be your responsibility at closing, depending on how the contract is written. Engineering and building envelope reports should be read carefully for any outstanding deficiencies or recommended work that hasn’t been actioned — these can translate directly into future costs. Never skip these documents, even on a newer building.