Home

Service that Follows the Sale

  • Home
  • Seller
    • Featured Listings
    • Why Sell With Perry
    • Buy Or Sell First
    • Video Gallery
    • 10 Steps
    • Selling Cost
    • Preparing Your Home For Sale
    • Guide to Selling Your Home
    • Moving Guide
  • Buyer
    • Why Buy with Perry
    • The Process
    • Video Gallery
    • 10 Steps To Buying Your Home
    • Choosing A Home
    • Strata Property
    • Buying Cost
    • Guide to the Home Buying Process
    • Moving Guide and Checklist
  • Resources
    • Financing
    • Completion Cost and Fees
    • Real Estate Websites to know
    • 25 Useful Resources
  • About Perry
    • Testimonials
    • Blog
  • Contact
  1. Buyer
  2. Strata Property

Strata Property


When buying a strata take the time to understand the basics and the rules governing the many aspects of strata properties.


This article focuses on what to look for to ensure you are buying a solid strata, including the Strata Property Disclosure Statement, the maintenance program, the contingency fund, the warranty program, and more.


Review strata council minutes

Look at minutes for the past 12 months or more, along with by-laws, financial statements, Annual General meeting minutes, and engineering reports that may have been completed. Look for past problems, previous repairs, special assessments, and upcoming expenditures.


Depreciation reports

As of February 28, 2013, strata corporations are required to obtain strata depreciation reports every three years unless they hold an annual 3/4 (three quarter) vote to exempt, or there are four, or fewer strata lots.


There are different timing requirements for the first depreciation report depending on when the strata corporation was formed.

  • For strata corporations formed on or before December 14, 2011, a depreciation report is required by December 13, 2013.

  • For strata corporations formed after December 14, 2011, a depreciation report is required within six months after their second AGM.


A depreciation report helps strata corporations plan for the repair, maintenance and replacement of common property, limited common property and common assets.


The report must contain:

  • A physical inventory of the common property and assets

  • Anticipated maintenance, repair and replacement costs for common expenses projected over 30 years.

  • A financial forecasting section with at least three cash flow funding models.


Depreciation reports helps strata corporations, including bare-land stratas, plan for the repair, maintenance and replacement of common property, limited common property and common assets over a 30-year period.


Depreciation reports provide useful information to strata lot owners, prospective purchasers, mortgage providers and insurance companies.


Ensure a maintenance program

Talk to the strata property manager to determine whether the building has a solid preventative maintenance program in place.


Check the contingency fund

Since a portion of strata owners’ monthly maintenance fees must go into a ‘contingency fund’ to pay for extraordinary repairs, such as a new roof or exterior painting, it pays to know if the contingency fund is large enough to cover any upcoming expenses.


Review the Strata Property Condition Disclosure Statement

Sellers are strongly encouraged to complete this disclosure statement. It is a checklist about the property’s condition. Buyers should carefully review it for any defects or potential problems. The Statement can be legally incorporated into the Contract for Purchase and Sale.


Investigate the warranty program and builder’s background

Regardless of whether the condo is new or resale, your REALTOR® can find out what type of warranty the building carries, noting the limits and duration of coverage. They may also be able to help you obtain background information about the builder/ developer of the project.


Hire a professional home inspector

Make sure the home inspector has proper accreditation and carries errors and omissions insurance. Have them inspect the condition of the suite, common areas, and the overall building structure.


Many REALTORS® specialize in condominium sales.


*CONDOMINIUM LISTING CHECKLIST*

Strata Property

  • 604.273-2828
  • 604.240.1220
  • perry@hoogie.com

Perry Hoogveld 2

RE/MAX Westcoast Realty

#110-6086 Russ Baker Way Richmond, BC V7B 1B4, Canada

Telephone Icon 604.240.1220  Mouse Icon perry@hoogie.com

    
Remax.ca  Children Miracle Network

Copyright © 2019. Service that Follows the Sale. All rights reserved.

  • Sitemap
  • Privacy Policy
  • Real Estate websites for Agents