BC Real Estate Trading Services Course Strata Properties

Question 1

What is a 'strata corporation' under BC's Strata Property Act?

Accepted Answer

A legal entity automatically created when a strata plan is filed at the Land Title Office, consisting of all strata lot owners who collectively manage the common property

Answer

A real estate development company

Answer

A type of homeowner's insurance company

Answer

A municipal department that oversees condominiums

Question 2

What is the difference between 'common property' and 'limited common property' in a BC strata?

Accepted Answer

Common property is owned jointly by all strata lot owners, while limited common property is common property designated for the exclusive use of one or more specific strata lots

Answer

There is no difference — they are the same thing

Answer

Common property is indoor space and limited common property is outdoor space

Answer

Common property is maintained by the strata corporation and limited common property is maintained by the city

Question 3

What is the 'Contingency Reserve Fund' (CRF) in a BC strata corporation?

Accepted Answer

A mandatory fund that the strata corporation must maintain for unexpected common expense expenditures or emergencies, funded by a minimum annual contribution

Answer

An optional savings account for strata owners

Answer

A fund used only for landscaping improvements

Answer

A government fund that covers natural disaster damage

Question 4

What information must be included in a Form B Information Certificate when selling a strata lot in BC?

Accepted Answer

Financial information about the strata, including monthly fees, CRF balance, outstanding lawsuits, special levies, bylaws, and any rental or age restrictions

Answer

Only the sale price and closing date

Answer

Only the square footage and number of bedrooms

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The names and contact information of all strata lot owners

Question 5

What is a 'special levy' in a BC strata corporation?

Accepted Answer

A one-time charge approved by the strata corporation to fund a specific expense that exceeds what the operating fund or CRF can cover, requiring a 3/4 vote

Answer

A monthly maintenance fee increase

Answer

A penalty for bylaw violations

Answer

A government tax on strata properties

Question 6

What is a 'depreciation report' and is it required for BC strata corporations?

Accepted Answer

A report estimating the remaining life and replacement cost of common property components, required for most strata corporations with 5 or more lots at least every 3 years

Answer

A report on the property's declining market value

Answer

A tax document showing the building's annual depreciation

Answer

A report only required for strata corporations over 20 years old