BC Strata Management cheat sheet

The Strata Property Act governs creation, governance, and wind-up of strata corporations in BC; the Strata Property Regulation supplies procedural detail the Act delegates (forms, fees, reserve fund rules, depreciation report timing).

A strata corporation comes into existence when the strata plan is deposited in the land title office; the owner developer holds the first annual general meeting within 6 months of 50% of unit entitlement being conveyed or 9 months from deposit, whichever is earlier.

Special levy approval requires a resolution passed by a 3/4 vote at a general meeting unless the bylaws are amended under s. 108 to permit expenditure from the contingency reserve fund; a special levy is collected from owners in the same proportions as strata fees.

Bylaw amendments require a 3/4 vote at a general meeting; bylaw changes affecting strata lot use or common property use also require the resolution to be filed in the land title office before taking effect.

A quorum for a general meeting is set by bylaw; if no bylaw exists, quorum is 1/3 of persons entitled to vote, present in person or by proxy.

The standard bylaws in the Schedule of the Act apply until the strata corporation amends them; the owner developer may amend bylaws before the first annual general meeting, subject to restrictions on restricting rentals or altering common property.

A strata corporation must hold an annual general meeting at least once each year and not more than 15 months after the previous AGM; council must be elected at each AGM.

A resolution by 3/4 vote means at least 3/4 of votes cast by eligible voters present in person or by proxy; a unanimous vote requires all eligible voters present and voting in favour, with no abstentions or dissent.

Strata council must have at least 3 and no more than 7 members; the council elects a president, vice-president, secretary, and treasurer from among its members at the first council meeting after the AGM.

Council meetings require quorum as set by bylaw; if none, quorum is a majority of council members. Council must keep minutes of meetings and make them available to owners and tenants on request.

Council may act by majority vote at a properly called council meeting; a council member cannot vote on a matter in which the member has a conflict of interest and must disclose the conflict.

The strata corporation must inform owners of council decisions within 1 week by posting a notice or delivering it, unless the decision is ratified at the next council meeting.

Council may spend money only as authorized by the Act, bylaws, or a resolution at a general meeting; expenditures from the contingency reserve fund require a 3/4 vote unless the bylaws permit council to authorize emergency expenditure.

An owner may request a hearing at a council meeting by written request; the council must hold the hearing within 4 weeks of receiving the request.

Council must enforce bylaws and rules; a complaint about a bylaw contravention must be in writing, and the council must give the alleged contravener notice and an opportunity to respond before imposing a fine.

Council members owe fiduciary duties to the strata corporation: act honestly and in good faith, exercise care and diligence, and avoid conflicts of interest; directors' liability is limited where they act in good faith.

The annual budget must be prepared by council and presented to owners at the AGM; it must set out estimated operating expenses and the strata fees payable by each owner, calculated on the basis of unit entitlement unless a bylaw under s. 100 permits a different formula.

Operating fund covers day-to-day expenses; contingency reserve fund (CRF) covers common property repairs and maintenance and major expenditures. CRF contributions must be at least 10% of the operating budget unless a 3/4 vote approves a lesser amount, and the CRF must be held in a separate account.

A special levy requires a 3/4 vote and is collected from owners based on unit entitlement; funds must be used only for the purpose stated in the resolution.

The strata corporation must prepare a depreciation report every 3 years unless a 3/4 vote at a general meeting waives the requirement; the report must be prepared by a qualified person and cover common property, common assets, and limited common property.

Financial statements must be prepared annually and presented at the AGM; the strata corporation must make financial records available to owners and tenants for inspection and provide copies on request.

Strata fees are due on the first day of each month unless the bylaws specify otherwise; a strata corporation may charge interest on late strata fees at a rate set by bylaw, and may lien a strata lot for unpaid strata fees, special levies, and related costs.

The CRF must be invested in accordance with the Trustee Act (Prudent Investor Rule) unless the bylaws authorize a different investment; funds cannot be invested in real property or mortgages without a bylaw.

The budget must include a contribution to the CRF, insurance premiums, and any other expenses required by the Act or bylaws; the budget is approved by majority vote at the AGM unless the bylaws require a different threshold.

Strata managers in BC must be licensed under the Strata Property Act; licensing is administered by the BC Financial Services Authority (BCFSA), which sets education, experience, and continuing education requirements.

A strata manager owes fiduciary duties to the strata corporation: act in the corporation's best interest, avoid conflicts of interest, disclose any personal interest in a transaction, and not accept undisclosed commissions or gifts.

A strata manager must keep client funds in a separate trust account, maintain accurate records, and reconcile accounts monthly; commingling of trust funds with operating funds is prohibited.

A strata manager must provide a written management agreement specifying services, fees, and term; the agreement must be disclosed to the strata council and approved by the strata corporation.

Strata managers must maintain confidentiality of strata corporation records and not disclose information without authorization, except as required by law or the Act.

A strata manager must act within the authority delegated by the strata corporation and must not make decisions reserved for the council or owners (e.g., special levies, bylaw amendments) without proper authorization.

Real estate licensees and strata managers must report suspected fraud, misappropriation, or material breaches of the Act to BCFSA; failure to report can result in disciplinary action.

Continuing education is mandatory for strata managers; licensees must complete required courses and maintain records of completion, subject to audit by BCFSA.