Recent changes to BC’s Strata Property Act make it more important than ever for buyers to read a strata’s documentation.
Buying a strata property?
Reviewing these documents should be a “subject to”, or condition of your contract to buy the property.
Give yourself lots of time to read the documents, and if necessary, hire your BC Notary, lawyer or REALTOR®to help you go through them.
So what are these documents?
Some of the documents you should review before you remove the “subject to” clauses with respect to the strata documentation:
- minutes (usually for the last 2 years)
- financial statements, including budgets
- depreciation report
- insurance coverage
- Information Certificate
- property disclosure statements
This list is not exhaustive; each strata building is unique. Consider carefully the kind of strata you are buying, as that will inform your decisions about which documentation you should request and read.
Do I need to read them?
If you are using a mortgage to buy the property, you will very likely have to sign a statement for your lender that you have read these documents, and that you are satisfied that they meet the legal requirements.
Your lender could refuse to fund your mortgage if you cannot assure it that the strata is meeting its legal requirements.
What happens if I don’t read them?
You’ll likely miss some important information, which could cost you some money.
For example, does the contingency reserve fund meet legally required minimums? Does the depreciation report contain the things required by the Strata Property Act? Will your lender refuse to fund if there is no depreciation report at all?
Can you help me go through them?
Yes, you can absolutely hire us to help you go through these documents.
Call us if you would like help reviewing these documents.February 5, 2014 4:56 pm
Tags: bylaws, depreciation report, minutes, property disclosure statement, real property, strata