BC Strata Management flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Strata Property Act

British Columbia statute governing creation, governance, and wind-up of strata corporations; the Strata Property Regulation provides procedural detail such as forms, fees, and reserve fund rules.

Unit entitlement

A schedule in the strata plan allocating each strata lot's share of common property and common expenses; it determines voting strength and strata fee proportions.

Special levy

A charge approved by 3/4 vote at a general meeting to fund a specific expense, collected from owners in proportion to unit entitlement and used only for the stated purpose.

3/4 vote

A resolution passed when at least three-quarters of votes cast by eligible voters present in person or by proxy are in favour; used for special levies and bylaw amendments.

Quorum

The minimum number of eligible voters who must be present in person or by proxy for a general meeting to conduct business; set by bylaw, otherwise one-third.

Standard bylaws

The default bylaws in the Schedule to the Act that apply until the strata corporation amends them; the owner developer may amend them before the first AGM.

Annual general meeting

A meeting required at least once each year and no more than 15 months after the previous AGM; council is elected and the budget and financial statements are presented.

Unanimous vote

A resolution requiring all eligible voters present and voting to vote in favour, with no abstentions or dissent; used for certain fundamental changes to the strata corporation.

Strata council composition

Council must have at least 3 and no more than 7 members elected at the AGM; members elect a president, vice-president, secretary, and treasurer from among themselves.

Council quorum

The minimum number of council members needed to conduct council business; set by bylaw, otherwise a majority of council members.

Conflict of interest

A council member must disclose any personal interest in a matter before council and abstain from voting on it; failure may invalidate the decision.

Hearing request

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

Bylaw enforcement

Council must enforce bylaws and rules; complaints must be in writing, and the alleged contravener must receive notice and an opportunity to respond before a fine is imposed.

Council fiduciary duty

Council members must act honestly and in good faith, exercise care and diligence, and avoid conflicts of interest in the best interests of the strata corporation.

Council expenditure authority

Council may spend money only as authorized by the Act, bylaws, or a general meeting resolution; CRF spending generally requires a 3/4 vote unless bylaws permit emergency expenditure.

Council meeting minutes

A written record of council decisions and proceedings that must be kept and made available to owners and tenants on request.

Notice of council decisions

Council must inform owners of its decisions within 1 week by posting or delivering notice, unless the decision is ratified at the next council meeting.

Annual budget

A budget prepared by council and presented at the AGM setting out estimated operating expenses and strata fees payable by each owner, generally based on unit entitlement.

Contingency reserve fund

A separate fund for common property repairs and major expenditures; contributions must be at least 10% of the operating budget unless a 3/4 vote approves less.

Depreciation report

A report prepared every 3 years by a qualified person covering common property, common assets, and limited common property, unless waived by 3/4 vote.

Strata fees

Monthly charges payable by owners to fund operating expenses and CRF contributions, generally calculated on unit entitlement and due on the first day of each month.

Special levy resolution

A 3/4 vote at a general meeting authorizing a special levy; funds must be used only for the purpose stated and collected in proportion to unit entitlement.

CRF investment rule

CRF funds must be invested under the Trustee Act Prudent Investor Rule unless bylaws authorize otherwise; real property and mortgage investments require a bylaw.

Late strata fee interest

A strata corporation may charge interest on unpaid strata fees at a rate set by bylaw and may lien the strata lot for unpaid fees, levies, and related costs.

Financial statement presentation

Annual financial statements must be prepared and presented at the AGM; owners and tenants may inspect records and request copies.

Strata manager licensing

Strata managers in BC must be licensed by the BC Financial Services Authority (BCFSA), which sets education, experience, and continuing education requirements.

Strata manager fiduciary duty

A strata manager must act in the corporation's best interest, avoid conflicts, disclose personal interests, and not accept undisclosed commissions or gifts.

Trust account

Client funds must be held in a separate trust account, reconciled monthly; commingling trust funds with operating funds is prohibited.

Management agreement

A written contract specifying services, fees, and term, disclosed to council and approved by the strata corporation before the manager acts.

Confidentiality duty

A strata manager must keep strata corporation records confidential and not disclose information without authorization, except as required by law or the Act.

Scope of authority

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

Reporting obligations

Strata managers must report suspected fraud, misappropriation, or material breaches of the Act to BCFSA; failure to report can result in disciplinary action.