BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 3 — Questions and Answers
Question 1: In BC, what is a 'Form B' (Information Certificate) in a strata transaction?
- The strata corporation's financial statements only
- A document issued by the strata corporation disclosing key financial, bylaw, and legal information about the strata lot (Correct answer)
- The buyer's mortgage approval for a strata unit
- The strata plan registration document at the Land Title Office
Correct answer: A document issued by the strata corporation disclosing key financial, bylaw, and legal information about the strata lot
Form B (Information Certificate) is required by the Strata Property Act and discloses critical information including strata fees, special levies, bylaw contraventions, legal proceedings, and the status of the contingency reserve fund.
Question 2: Under the BC Strata Property Act, can a strata corporation restrict rentals?
- No — rental restrictions are prohibited in BC
- Yes — strata corporations may pass bylaws restricting or prohibiting rentals, but grandfathering protects existing landlords (Correct answer)
- Yes — but only for detached strata lots
- Only if all owners agree unanimously
Correct answer: Yes — strata corporations may pass bylaws restricting or prohibiting rentals, but grandfathering protects existing landlords
Strata corporations may pass rental restriction bylaws. Under Bill 44 (2022), rental restriction bylaws enacted after November 24, 2022 are void. However, corporations that had valid rental restrictions before that date may maintain them with grandfathering protections.
Question 3: In BC, the 'depreciation report' for a strata corporation (under the Strata Property Act) is used to:
- Determine the annual depreciation deduction for tax purposes
- Assess the physical state of common property and project future repair and replacement costs (Correct answer)
- Set the rental rates for strata units
- Calculate the strata lot's current market value
Correct answer: Assess the physical state of common property and project future repair and replacement costs
A depreciation report (prepared by a qualified person every 3 years) assesses the condition of common property assets and provides a 30-year projection of repair/replacement costs, helping the strata fund the CRF appropriately.
Question 4: In BC, if a strata lot owner wants to make an alteration to common property (e.g., install a satellite dish), they must:
- Proceed without notification as it affects their own property
- Obtain written approval from the strata corporation before beginning the alteration (Correct answer)
- Get approval from 51% of neighbouring owners only
- File an application with BCFSA
Correct answer: Obtain written approval from the strata corporation before beginning the alteration
Under the Strata Property Act, owners must obtain written approval from the strata corporation before making alterations to common property. Unauthorized alterations may require the owner to restore the property at their expense.
Question 5: In BC, a strata corporation has a lien right against a strata lot when:
- The strata lot owner misses one strata fee payment
- Strata fees, special levies, or fines remain unpaid for more than 1 month (Correct answer)
- A bylaw violation occurs more than twice in a year
- The owner fails to attend 3 consecutive general meetings
Correct answer: Strata fees, special levies, or fines remain unpaid for more than 1 month
Under the Strata Property Act, the strata corporation can file a lien against the strata lot after amounts owing (fees, levies, fines) remain unpaid for more than 1 month. This lien has a special priority over many other charges.
Question 6: In BC, a strata corporation may sue in its own name because it is:
- Registered as a society under the Societies Act
- A corporation created automatically upon registration of the strata plan, with its own legal personality (Correct answer)
- Licensed as a property manager under RESA
- Authorized to do so by BCFSA annually
Correct answer: A corporation created automatically upon registration of the strata plan, with its own legal personality
Under the Strata Property Act, a strata corporation is automatically created as a legal entity when the strata plan is deposited at the Land Title Office. As a corporation, it can sue and be sued in its own name.
BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 3
In BC, what is a 'Form B' (Information Certificate) in a strata transaction?