Buying a strata property (usually condo or townhome) can seem like a straight forward proposition, this isn't always the case. Watch our video to break down WHAT you should be looking out for when considering a Strata property.
So, here are the TOP 3 Strata documents you may want to pay attention to when buying strata, along with some other ones you may consider reviewing:
FORM B - A Form B – Information Certificate is a strata form that should be reviewed by anyone considering buying a strata lot. The Form B sets out information relating to the strata corporation and its financial affairs including the amount of the strata fees payable, the amounts of any outstanding or approved special levies, whether there are any new bylaws that have been recently approved, how many strata lots in the development may be rented, etc… If you will be getting a mortgage to complete your purchase, your bank will likely require a copy of the Form B.
Strata Minutes - The strata minutes will outline all of the strata meetings and will give you a rough idea of ongoing projects and issues in the building that have come to order. For example, these may include security upgrades and/or break-ins, noise complaints, history of special levies, and building maintenance. You will also be able to get a feel for how the council deals with these issues and gage how pro-active they are. The council’s members will include a board of residents who volunteer or are elected annually, typically along with one property manager, who manage the building/complex and its finances.
- Depreciation Report - Depreciation Reports are required in BC for strata corporations as of 2013. A Depreciation Report is a unique report, prepared by a team of engineers and specialists, that outlines the health of a building’s large systems such as building envelope (siding, windows, roof), plumbing, heating system and structure. It also outlines how the strata will be paying for any future repairs / replacement, and when the repairs will occur. It’s a great way to know what upcoming costs / levies you may need to pay over the next 5, 10, and even 20 years. Note: A strata may choose to waive doing a depreciation report if more than three – fourths of the owners vote against it.
Other Documents to consider reading:
- By Laws
- Engineering Report(s)
- Annual General Meeting
- Special Meetings (if any)
- Strata Plan
- Insurance Note
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What To Do Next? 😎
- Reach out to us If you are THINKING about buying or Refinancing
- Send This Info & Video to everyone you know who is buying or selling or maybe refinancing Remember: they may be thinking of a refinance, investment property OR know a friend who is currently thinking of buying.
- Send them our way and we will give them an estimate of their before and after rule pre-qualification.
- Contact us early to get ahead of the game, even if your mortgage is not up for renewal until next year.
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