BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 5 — Questions and Answers
Question 1: In BC, a 'section' within a strata corporation under the Strata Property Act refers to:
- A part of the strata plan showing building dimensions
- A separate administrative unit within the strata corporation for owners with significantly different interests (e.g., residential vs. commercial) (Correct answer)
- A committee of the strata council
- A designated parking area within the development
Correct answer: A separate administrative unit within the strata corporation for owners with significantly different interests (e.g., residential vs. commercial)
Sections allow a strata corporation to establish separate administrative units when strata lots have significantly different use (e.g., residential vs. commercial towers). Each section has its own budget and council for section-specific expenses.
Question 2: In BC, a strata lot owner who suffers water damage from a burst pipe in the ceiling (which is common property) should first:
- Pay for repairs personally and bill the tenant
- Report the damage to the strata corporation, as the strata is responsible for common property repairs (Correct answer)
- Contact BCFSA to file a complaint
- Sue the neighbouring unit owner
Correct answer: Report the damage to the strata corporation, as the strata is responsible for common property repairs
The strata corporation is responsible for maintaining and repairing common property, including pipes within the common property areas. Owners should report common property damage to the strata council.
Question 3: Under the Strata Property Act BC, when a strata lot is sold, the seller is responsible for:
- Paying all future strata fees before transfer
- Paying all outstanding strata fees, special levies, and fines up to the date of sale (Correct answer)
- Transferring the operating fund contribution to the buyer
- Having all bylaws re-registered in the buyer's name
Correct answer: Paying all outstanding strata fees, special levies, and fines up to the date of sale
Upon sale, the seller must ensure all outstanding strata fees, special levies, and fines are paid up to the completion date. Any arrears outstanding on title can be discovered via the Form B.
Question 4: In BC, a buyer reviewing a strata corporation's Form B notices a large unresolved special levy. This is significant because:
- Special levies reduce property value permanently
- The buyer (as new owner) will be responsible for paying the special levy after taking title (Correct answer)
- Special levies are refunded to the seller at completion
- Special levies only apply to the original owner who approved them
Correct answer: The buyer (as new owner) will be responsible for paying the special levy after taking title
Once the buyer takes title, they become responsible for all future strata obligations, including approved special levies — even ones approved before they purchased. This is why Form B review is critical.
Question 5: Under the BC Strata Property Act, a strata corporation can be wound up (terminated) by:
- A majority vote of owners at an AGM
- A unanimous vote of all owners, or court order, or destruction of the building beyond repair (Correct answer)
- A decision by the strata council
- BCFSA ordering termination after a compliance review
Correct answer: A unanimous vote of all owners, or court order, or destruction of the building beyond repair
The Strata Property Act allows termination of a strata corporation by: unanimous vote of all owners, a court order (rare circumstances), or when the strata plan is cancelled (e.g., after total destruction). A simple majority is not sufficient.
Question 6: In BC, when purchasing a strata unit, a buyer should check the strata corporation's minutes to look for:
- The listing agent's commission rate
- Evidence of ongoing disputes, planned major repairs, financial problems, or unresolved bylaw issues (Correct answer)
- BC Assessment values for all units in the complex
- Individual owners' personal financial information
Correct answer: Evidence of ongoing disputes, planned major repairs, financial problems, or unresolved bylaw issues
Strata minutes are an important due diligence tool. They reveal ongoing disputes between owners, planned capital expenditures, special levies under discussion, building envelope problems, and other issues not visible from the Form B alone.
BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 5
In BC, a 'section' within a strata corporation under the Strata Property Act refers to: