BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 6 — Questions and Answers
Question 1: In BC, the 'Buyers Package' of documents for a strata purchase that a licensee should obtain includes the Form B plus:
- Only the strata plan
- Current bylaws and rules, latest financial statements, depreciation report, recent minutes, and strata plan (Correct answer)
- Only the depreciation report and operating budget
- The Property Transfer Tax return from the previous sale
Correct answer: Current bylaws and rules, latest financial statements, depreciation report, recent minutes, and strata plan
Thorough due diligence requires: Form B, strata plan, current bylaws and rules, operating and CRF financial statements, depreciation report, and recent AGM and council meeting minutes.
Question 2: Under BC's Strata Property Act, what is the maximum fine amount a strata corporation may impose per bylaw violation (under the default standard bylaw)?
- $100
- $200
- $500 (Correct answer)
- $1,000
Correct answer: $500
Under the Strata Property Act standard bylaws, the maximum fine is $200 per bylaw violation. However, strata corporations can pass bylaws setting higher fines for certain violations (up to $500 for rental restriction violations, for example).
Question 3: In BC, a strata lot owner who disagrees with a strata council decision can seek resolution through:
- Filing a complaint with BCFSA only
- Civil Resolution Tribunal (CRT), mediation, or the BC Supreme Court, depending on the amount in dispute (Correct answer)
- The BC Real Estate Association arbitration process
- The managing broker of the property management company
Correct answer: Civil Resolution Tribunal (CRT), mediation, or the BC Supreme Court, depending on the amount in dispute
BC's Civil Resolution Tribunal (CRT) has jurisdiction over strata disputes up to $50,000. Owners can also pursue mediation, arbitration, or the BC Supreme Court for larger or more complex disputes.
Question 4: In BC strata law, what does 'phased strata' mean?
- A strata developed in multiple phases, where new sections are added over time through separate strata plans (Correct answer)
- A strata corporation that phases in bylaws over 3 years
- A strata development where different floors are sold in different years
- A strata where parking is allocated in phases after occupancy
Correct answer: A strata developed in multiple phases, where new sections are added over time through separate strata plans
A phased strata development means the strata plan is developed and registered in multiple phases. Each new phase creates additional strata lots as construction is completed, with the developer retaining the right to add phases.
Question 5: In BC, is a strata corporation required to maintain a contingency reserve fund (CRF)?
- No — it is optional for small strata corporations with fewer than 5 lots
- Yes — all strata corporations must maintain a CRF for major capital repairs (Correct answer)
- Only strata corporations with more than 50 lots are required to have a CRF
- Only if the depreciation report recommends it
Correct answer: Yes — all strata corporations must maintain a CRF for major capital repairs
The Strata Property Act requires all strata corporations — regardless of size — to establish and maintain a contingency reserve fund for major capital expenditures and unexpected repairs.
Question 6: Under BC law, a strata corporation must prepare and approve an annual budget that sets:
- The resale price for all strata lots in the coming year
- The operating expenses and strata fees to cover them, plus contributions to the CRF (Correct answer)
- The property tax rate for each strata lot
- The commission rate for any listing of strata lots
Correct answer: The operating expenses and strata fees to cover them, plus contributions to the CRF
The annual budget approved at the AGM sets the projected operating expenses, the required strata fees to cover those expenses, and the contributions to the contingency reserve fund based on the depreciation report.
BC Real Estate Trading Services Course Strata (Condo) Law & Strata Property Act BC 6
In BC, the 'Buyers Package' of documents for a strata purchase that a licensee should obtain includes the Form B plus: