BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 4 — Questions and Answers
Question 1: In BC, a real estate licensee selling a strata unit must provide the buyer with:
- A copy of the strata plan and the Form B only
- The strata plan, Form B, current bylaws, rules, recent AGM minutes, and financial statements (Correct answer)
- Only the Form B — all other documents are optional
- A BCFSA-certified strata report
Correct answer: The strata plan, Form B, current bylaws, rules, recent AGM minutes, and financial statements
Due diligence for strata purchases includes reviewing the Form B, strata plan, current bylaws and rules, financial statements (operating fund, CRF), recent minutes of council and general meetings, and the depreciation report.
Question 2: Under the BC Strata Property Act, the strata council is elected by:
- The property management company
- Strata lot owners at the annual general meeting (Correct answer)
- The original developer for the first 5 years
- BCFSA from a list of qualified candidates
Correct answer: Strata lot owners at the annual general meeting
The strata council is elected by strata lot owners at the annual general meeting. Council members serve on behalf of the strata corporation to manage day-to-day operations.
Question 3: In BC, 'bare land strata' differs from a conventional strata in that:
- It does not require registration at the Land Title Office
- The strata lots consist of parcels of land rather than units within a building (Correct answer)
- Only the land is owned — no improvements are permitted
- It is governed by the Property Law Act, not the Strata Property Act
Correct answer: The strata lots consist of parcels of land rather than units within a building
A bare land strata plan divides land into individual parcels (strata lots). Each owner typically owns their lot and any buildings on it, with roads, utilities, and other common areas as common property.
Question 4: In BC, the Standard Schedule of Unit Entitlement determines strata fees based on:
- The number of bedrooms in each strata lot
- The square footage of each strata lot relative to the total floor area of all lots (Correct answer)
- An equal share for all owners regardless of size
- The assessed value of each strata lot
Correct answer: The square footage of each strata lot relative to the total floor area of all lots
Under the standard schedule, unit entitlement is based on the floor area of each strata lot as a proportion of total strata lot area, meaning larger units pay proportionally more in strata fees.
Question 5: In BC, when a strata corporation obtains insurance for the strata building, which areas are typically covered?
- Individual owners' personal belongings and improvements only
- Original construction of common property, limited common property, and strata lots (full replacement value) (Correct answer)
- Only the common property exterior of the building
- Only areas where there have been past claims
Correct answer: Original construction of common property, limited common property, and strata lots (full replacement value)
Under the Strata Property Act, the strata corporation must insure common property and assets for full replacement value, including the original construction of strata lots. Owners insure their improvements and contents separately.
Question 6: In BC strata law, a bylaw violation by an owner can result in the strata corporation:
- Immediately evicting the owner from the strata lot
- Imposing fines as set out in the bylaws after following the prescribed hearing process (Correct answer)
- Applying to cancel the owner's title
- Reporting the owner to BCFSA
Correct answer: Imposing fines as set out in the bylaws after following the prescribed hearing process
The Strata Property Act allows strata corporations to impose fines for bylaw violations. However, the owner must be given notice of the alleged violation and an opportunity to be heard before fines are imposed.
BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 4
In BC, a real estate licensee selling a strata unit must provide the buyer with: