One common strategy that stratas use to minimize strata fees in the present is by “padding their current budget”. When stratas have had surpluses in previous fiscal years, they often choose to leave these surplus funds in their operating account (often labeled “Retained Earnings” on financial documents). This is common practice and is not in itself problematic, as having some cash on hand gives the strata the ability to pay its bills when they’re due. Having low funds in the operating account can cause issues, as the strata may not be able to pay its bills on time, having to wait for mor ..read more

Supply still key to Victoria’s housing market A total of 588 properties sold in the Victoria Real Estate Board region this March, 0.3 per cent fewer than the 590 properties sold in March 2023 but a 25.1 per cent increase from February 2024. Sales of condominiums were down 10.2 per cent from March 2023 with 177 units sold. Sales of single family homes increased 1.8 per cent from March 2023 with 286 sold.   “We’ve concluded a rather quiet first quarter and are transitioning into the spring market,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “Many of our local REALTOR® membe ..read more

Property Transfer Tax exemptions - April 1, 2024 For many, buying a home is the largest purchase they will ever make, and property prices are making it harder. Every little bit helps, and Budget 2024 aims to give people the financial boost they need to bring buying a home within reach, including: Increases to the threshold for the First Time Homebuyers’ Program so it reflects today’s market: Qualifying first-time buyers can benefit when they purchase a home worth up to $835,000, with the first $500,000 completely exempt from the property transfer tax. That could mean as much as $8,000 in sav ..read more

strata corporations are not required to obtain earthquake insurance. That being said, purchasing a unit in a strata corporation that does not have earthquake insurance can pose significant risks, so it’s important to advise consumers accordingly. It’s also important for your clients to be aware of how much they may be on the hook for, were an earthquake to happen and cause significant damage. By doing so, your clients will be able to make an informed decision on whether, or not, to obtain additional homeowner insurance, to mitigate their risk ..read more

1. To start, it’s important to understand what we mean by “enough”. If you’ve missed our email explaining how to determine whether a strata has “enough” in its contingency reserve fund (CRF), you can check it out here: Does the Strata Have Enough in its CRF? 2. So, how much can buyers expect to pay in special levies because BC stratas are not saving enough in their CRFs to pay for all their future capital projects? Because we’ve had a chance to review so many strata corporations all across BC, we’ve gathered some metrics that allow buyers to make more informed decisions about th ..read more

All strata corporations in BC, regardless of size, must obtain property and liability insurance, including bare land strata corporations and strata-titled duplexes. 1. Property Insurance A. The strata corporation’s property insurance must be for: Common property Common assets Buildings shown on the strata plan, and Fixtures built or installed on a strata lot if built or installed by the owner developer as part of the original construction of the strata lot (e.g., the original flooring, cabinets, etc.) B. Property insurance must ..read more

Based on our experience, approximately 25% of strata corporations or management companies neglect to provide the latest set of bylaws. So, in this email, we’ll go over how you can ensure you have the latest, enforceable set of bylaws. Where can I find the strata corporation’s bylaws? All strata corporations in BC should have bylaws filed with the Land Title and Survey Authority (LTSA). These can either be the Standard Bylaws or, if the strata has amended its bylaws, the strata’s unique set of bylaws. To ensure you have the latest set of enforceable bylaws, we recomm ..read more

What is the Form B: Information Certificate? As per the Strata Property Act, a buyer is entitled to obtain a current and complete Form B: Information Certificate. This document is issued by the strata corporation, or the strata manager on behalf of the strata corporation, and contains: Some information about the strata corporation as a whole, and Some information specific to the strata lot the buyer is intending to purchase. When providing a Form B to a potential buyer or a real estate licensee, strata corporations, and by extension their strata managers, must u ..read more

We frequently get questions about the difference between a strata lot, common property and limited common property, so here it is: In British Columbia, land registered at the Land Title Office can be subdivided in different ways. One of these is a “strata subdivision”, which is different than the “traditional subdivision of land”. A “strata development” allows the subdivision of a building, or sometimes land, into: 1. Strata Lots - Which are separate parts for individual ownership, and 2. Common Property - The rest of the property (and assets)&nb ..read more

Depreciation Reports (as they’re known in BC) or Reserve Fund Studies (as they’re known in many other jurisdictions), enable strata corporations to better plan for future maintenance, repair and/or replacement of common property and common assets. From a buyer’s point of view, depreciation reports are a tool that can help one better understand: The likelihood that they may face additional special levies, because the strata may not be saving enough in its Contingency Reserve Fund (CRF), to pay for all future projects.   That being said, when looking at depreciatio ..read more