Most first homes in the Lower Mainland are strata: condos, townhouses, and a growing number of multiplexes. When you buy one, you're buying a share of a building and its finances. The price, the photos and the monthly fee tell you little about that. The documents do. Buyers usually get a week or so of subject time to read hundreds of pages. This guide shows which ones matter, what to look for in each, and the numbers that can turn a good unit into an expensive one.
The documents to ask for
- Form B information certificate. The strata fee, the contingency reserve fund balance, any approved or proposed special levies, amounts owing on the unit, bylaw infractions, lawsuits, parking and storage assigned to the unit, and the unit entitlement. The strata must provide it within a week of a request, for a regulated fee.
- Minutes from the last two years: council meetings, the AGM and any special general meetings. This is where problems surface before they reach the budget.
- The depreciation report and any engineering reports, such as building envelope, roof, elevator or plumbing assessments.
- The current budget and the latest financial statements.
- Bylaws and rules, including amendments filed with the Land Title Office.
- The insurance certificate and summary, showing coverage, the building's insured value and every deductible.
- The strata plan, showing the unit, limited common property such as the patio or parking, and unit entitlements.
Ask for them as soon as your offer is accepted, or before you write one. Missing documents are a reason to extend subjects, not to waive them.
Reading the depreciation report
A depreciation report lists every major part of the common property, when each will need repair or replacement, and what that will cost, with funding plans for the next 30 years.
Since July 1, 2024, every strata of five or more lots must get one every five years. The old option of deferring it by a three-quarter vote each year is gone. Since July 1, 2025, reports must come from designated professionals such as engineers, architects, appraisers and technologists. Stratas of four or fewer lots, including many duplexes and fourplexes, are still exempt. That means buyers of small stratas get less information and should inspect more carefully.
What to look for:
- Big items due in the next five to ten years: roof, envelope, windows, elevators, piping, parkade membrane.
- Whether the contingency reserve fund is on track with the funding model the strata chose, or far below it.
- The report's date and author. A report more than five years old doesn't meet the current rules.
The contingency reserve fund and the strata fee
The contingency reserve fund (CRF) pays for major repairs so owners aren't hit with special levies. If the fund is below 25% of the annual operating budget, the strata must contribute at least 10% of that budget to it each year. That's a legal floor, not a sign of health.
A low strata fee paired with a thin CRF and big repairs ahead isn't cheap. It's a special levy waiting to happen.
Compare the fee per square foot with similar buildings of the same age. A higher fee in a well-funded building is often the better buy.
Special levies
A special levy is a one-time charge to owners, usually for major repairs the CRF can't cover. It's normally approved by a three-quarter vote at an AGM or special general meeting and shared by unit entitlement. Since 2020, a court can also order critical repairs to proceed if owners won't approve them.
Who pays when a unit is sold depends on when the levy was approved, when it's payable, and what the contract says. The Form B shows approved and proposed levies. The minutes show levies that are being discussed but haven't come to a vote. If a big project is coming, negotiate: a price reduction, a seller credit, or a clause making the seller responsible.
Buildings from the late 1980s to about 2000 need extra care. Many had building envelope failures, known locally as "leaky condos". Look for a completed rainscreen remediation, the warranty on that work, and whether it was paid off.
Insurance and deductibles
The strata insures the building for full replacement value. You insure your contents, your improvements, your liability, and your exposure to the strata's deductibles.
- If damage starts in your unit and you're responsible, for example a failed dishwasher hose, the strata can charge you up to its deductible. Water deductibles in Lower Mainland buildings are often $25,000 to $100,000, and some are higher.
- If no owner is responsible, the deductible is a common expense shared by unit entitlement.
- Earthquake deductibles are usually a percentage of the building's insured value, often 10% or more. On a $60 million building that's millions of dollars, shared by all owners. Your share can easily exceed $50,000.
Ask your insurer for deductible (loss assessment) coverage that matches, including the separate earthquake limit. The calculator above works out the numbers. See also our earthquake insurance guide.
Bylaws that affect your life
- Rentals. Since November 2022, stratas can't restrict long-term rentals. That's good for investors, and means more tenants in the building. 55+ buildings can still keep age restrictions.
- Short-term rentals. Stratas can still ban them, and provincial rules limit them to the host's principal residence in most communities anyway.
- Pets. Check limits on number, size and type, and the rules for existing pets.
- Renovations. Flooring changes often need approval and sound underlay. Structural changes need council approval.
- Parking, storage and bikes. Confirm what's assigned to the unit as limited common property, or by council, and whether it can be changed.
A strata review in five days
- Day 1: request everythingAt acceptance
Form B, two years of minutes, the depreciation report, engineering reports, financials, bylaws, insurance and the strata plan.
- Day 2: Form B and insuranceThe numbers
Fee, CRF balance, levies, deductibles, and what's assigned to the unit. Run the deductible calculator.
- Days 2–3: minutesThe story
Search for leaks, envelope, roof, elevator, levy, lawsuit, insurance, and anything that keeps coming up.
- Day 3: depreciation reportThe future
Major items in the next ten years against the CRF plan.
- Days 4–5: decide or negotiateBefore subjects come off
Price, seller credit, levy clause, or walk away. Ask your lawyer about anything unclear.
Mistakes we see
Reading only the Form B. Problems show up in the minutes long before they reach it.
Taking a low strata fee as a bargain without checking the reserve fund and the depreciation report.
Carrying less deductible coverage than the strata's water deductible, or ignoring the earthquake limit.
Removing subjects with documents missing.
Assuming a small strata is simpler. Four-lot stratas have no depreciation report requirement and often thin reserves.
Buying a 1990s building without checking its envelope history.
Questions people ask us
What is a Form B in BC?
The strata's information certificate for a unit. It shows the strata fee, the contingency reserve fund balance, approved and proposed special levies, amounts owing, bylaw infractions, lawsuits, assigned parking and storage, and the unit entitlement. The strata must provide it within a week of a request, for a regulated fee.
Are depreciation reports mandatory in BC?
Yes, for stratas of five or more lots. Since July 1, 2024 they must get one every five years and can no longer defer it by a three-quarter vote. Since July 1, 2025 reports must come from designated professionals. Stratas of four or fewer lots are exempt.
Who pays a special levy when a strata unit is sold?
It depends on when the levy was approved and payable and on what the contract of purchase and sale says. Check the Form B and the minutes, and negotiate a credit or a seller-pays clause for known upcoming levies.
How are special levies approved?
Usually by a three-quarter vote at an annual or special general meeting, and they're shared by unit entitlement. A court can also order critical repairs to proceed if owners won't approve them.
Who pays the strata insurance deductible?
If an owner is responsible for the damage, the strata can charge that owner up to the deductible. If no one is responsible, it's a common expense shared by all owners by unit entitlement. Condo owners should carry deductible coverage on their own policy.
How much deductible coverage should my condo insurance have?
At least the strata's water damage deductible, and enough to cover your unit-entitlement share of the earthquake deductible, which is often a percentage of the whole building's value. The calculator on this page works it out from the strata's insurance summary.
Can a BC strata ban rentals?
Not long-term rentals, since November 2022. 55+ buildings can keep age restrictions, and stratas can still ban short-term rentals.
778-918-5990
Looking at a strata unit?
Dan can request the documents early, flag what matters in the minutes and depreciation report, and negotiate around known levies before you remove subjects. Your deductible numbers come along with the message.
