BC Real Estate Trading Services Course Strata Properties (Condominiums) Questions and Answers

Question 1

A prospective buyer is reviewing the documents for a strata unit in Vancouver and notes that the parking stall is designated as 'Limited Common Property' (LCP).
What does this designation mean for the buyer?

Accepted Answer

The buyer will have the exclusive right to use that specific parking stall, and this right is attached to their strata lot.

Answer

The buyer will own the parking stall outright as a separate titled property.

Answer

The strata council can reassign the parking stall to another owner upon providing reasonable notice.

Answer

The parking stall is common property available on a first-come, first-served basis to all residents.

Question 2

A strata corporation in British Columbia needs to fund a major, unbudgeted roof replacement costing $250,000. The Contingency Reserve Fund (CRF) is insufficient to cover the full amount. What is the standard procedure the strata corporation must follow to raise the necessary funds?

Accepted Answer

The strata corporation must pass a resolution for a special levy, which requires a 3/4 vote at an annual or special general meeting.

Answer

The strata council can approve a special levy by a majority vote at a council meeting.

Answer

The strata corporation must obtain a bank loan, which only requires a majority vote of owners at an AGM.

Answer

The monthly strata fees for all owners are automatically increased until the required funds are collected.

Question 3

Which of the following documents is NOT required to be attached to a current Form B Information Certificate in British Columbia?

Accepted Answer

The minutes from the last three Annual General Meetings.

Answer

The current budget of the strata corporation.

Answer

The rules of the strata corporation.

Answer

The most recent depreciation report, if one has been obtained.

Question 4

Effective November 1, 2023, what is the minimum annual contribution a strata corporation in BC must make to its Contingency Reserve Fund (CRF) when approving the annual budget?

Accepted Answer

10% of the total amount budgeted for the operating fund.

Answer

5% of the total amount budgeted for the operating fund.

Answer

An amount equal to the annual insurance deductible.

Answer

Whatever amount is recommended in the most recent depreciation report.

Question 5

In a BC strata corporation, the strata council wishes to implement a new regulation prohibiting the use of personal barbecues on all balconies. Which of the following statements correctly describes how this can be legally enforced?

Accepted Answer

This restriction can only be implemented as a bylaw, which must be approved by a 3/4 vote of the owners and filed with the Land Title Office.

Answer

The strata council can create a 'rule' and enforce it immediately without owner input.

Answer

As it relates to safety, the strata manager can issue a notice that makes the regulation effective immediately.

Answer

A simple majority vote of the strata council is sufficient to create a new, permanent bylaw for this purpose.

Question 6

Under recent changes to the Strata Property Act in BC, what is the status of depreciation reports for strata corporations with five or more lots?

Accepted Answer

They are mandatory, and the option for owners to vote to defer obtaining one has been eliminated.

Answer

They are optional but highly recommended by BCFSA.

Answer

They are mandatory, but the requirement can be waived annually with a 3/4 vote of the owners.

Answer

They are only required if the strata corporation is more than 10 years old.