Strata Properties Flashcards
6 cards from real BC Real Estate Trading Services Course practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Strata Properties flashcards as text
What is a 'strata corporation' under BC's Strata Property Act?
Answer: A legal entity automatically created when a strata plan is filed at the Land Title Office, consisting of all strata lot owners who collectively manage the common property
A strata corporation is automatically created upon the deposit of a strata plan at the Land Title Office. It consists of all strata lot owners and is responsible for managing and maintaining common property, enforcing bylaws, obtaining insurance, and administering the strata's financial affairs. Each owner is automatically a member.
What is the difference between 'common property' and 'limited common property' in a BC strata?
Answer: Common property is owned jointly by all strata lot owners, while limited common property is common property designated for the exclusive use of one or more specific strata lots
Common property (hallways, lobbies, parking garages) is shared by all owners. Limited common property (LCP) is common property designated for the exclusive use of specific strata lot owners — such as a parking stall, storage locker, balcony, or patio. LCP is still owned by the strata corporation but restricted to specific owners' use.
What is the 'Contingency Reserve Fund' (CRF) in a BC strata corporation?
Answer: A mandatory fund that the strata corporation must maintain for unexpected common expense expenditures or emergencies, funded by a minimum annual contribution
The CRF is a mandatory fund under the Strata Property Act. Strata corporations must contribute at least 10% of the operating budget annually until the CRF reaches 25% of the total annual budget. It is intended for unexpected or emergency expenses related to common property, such as urgent plumbing repairs or emergency structural work.
What information must be included in a Form B Information Certificate when selling a strata lot in BC?
Answer: Financial information about the strata, including monthly fees, CRF balance, outstanding lawsuits, special levies, bylaws, and any rental or age restrictions
A Form B Information Certificate provides critical information about the strata corporation including: monthly strata fees, CRF balance, any outstanding or pending special levies, lawsuits against the strata, parking and storage allocations, bylaws and rules, rental and age restrictions, and any required repairs. Buyers rely heavily on this document.
What is a 'special levy' in a BC strata corporation?
Answer: A one-time charge approved by the strata corporation to fund a specific expense that exceeds what the operating fund or CRF can cover, requiring a 3/4 vote
A special levy is a one-time charge to fund a specific expense, such as a major roof replacement, building envelope repair, or elevator modernization. It requires approval by a 3/4 vote at a general meeting. The levy is allocated among owners based on their unit entitlement. Owners who purchased after the levy was approved are still responsible for their share.
What is a 'depreciation report' and is it required for BC strata corporations?
Answer: A report estimating the remaining life and replacement cost of common property components, required for most strata corporations with 5 or more lots at least every 3 years
A depreciation report (similar to a reserve fund study) estimates the remaining useful life and replacement cost of major common property components. Strata corporations with 5 or more lots must obtain one at least every 3 years, prepared by a qualified professional. It helps with long-term financial planning and adequate CRF funding.