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.
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.
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.
For example, does the contingency reserve fund meet legally required minimums? Does the depreciation report contain the things required by theStrata Property Act? Will your lender refuse to fund if there is no depreciation report at all?
Call us if you would like help reviewing these documents.
Categorised in: real property
This post was written by Linda Caisley