BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 1 — Questions and Answers
Question 1: In BC, the primary legislation governing strata corporations is:
- Real Estate Services Act
- Strata Property Act SBC 1998 (Correct answer)
- Condominium Act of BC
- Property Law Act BC
Correct answer: Strata Property Act SBC 1998
The Strata Property Act SBC 1998 is the primary legislation governing the creation, management, and operation of strata corporations in British Columbia.
Question 2: In BC strata law, 'common property' is defined as:
- All property owned by individual strata lot owners
- The portion of land and building not included in any strata lot (Correct answer)
- Property owned by the strata corporation and sold to members
- Areas accessible only to strata council members
Correct answer: The portion of land and building not included in any strata lot
Common property under the Strata Property Act is all parts of the strata plan not included within the boundaries of any individual strata lot. Owners share an undivided interest in common property through their unit entitlement.
Question 3: In BC, 'strata fees' paid by owners are used to fund:
- The strata council members' salaries
- The operating fund and contingency reserve fund of the strata corporation (Correct answer)
- Property Transfer Tax on strata lot transfers
- The managing broker's commission
Correct answer: The operating fund and contingency reserve fund of the strata corporation
Strata fees are contributions to the strata corporation's operating fund (for day-to-day expenses) and contingency reserve fund (for major future repairs and replacements).
Question 4: Under the BC Strata Property Act, a strata corporation must have a 'contingency reserve fund' (CRF) which is used for:
- Monthly maintenance expenses like cleaning and landscaping
- Major unexpected and anticipated expenses and capital repairs (Correct answer)
- Paying strata agent management fees
- Individual strata lot repairs
Correct answer: Major unexpected and anticipated expenses and capital repairs
The CRF must be maintained for major capital expenditures and unexpected repairs — items like roof replacement, elevator repairs, or major plumbing work that exceed the operating budget.
Question 5: In BC, a 'special levy' in a strata corporation is:
- A regular monthly strata fee increase
- A one-time charge to all owners for an expense not covered by existing strata funds (Correct answer)
- A fine levied against an owner for bylaw violations
- A government tax on strata lot transfers
Correct answer: A one-time charge to all owners for an expense not covered by existing strata funds
A special levy is a one-time or non-recurring charge approved by strata owners to cover extraordinary expenses that exceed the contingency reserve fund or operating fund balance.
Question 6: In BC strata law, the 'unit entitlement' determines:
- The physical size of a strata lot only
- Each owner's proportionate share of strata fees and voting rights in the strata corporation (Correct answer)
- The maximum rental period allowed in a strata complex
- The value of the strata lot for Property Transfer Tax purposes
Correct answer: Each owner's proportionate share of strata fees and voting rights in the strata corporation
Unit entitlement is assigned to each strata lot in the strata plan and determines each owner's proportionate share of common expenses (strata fees) and their voting entitlement at general meetings.
BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 1
In BC, the primary legislation governing strata corporations is: