Script 401 gives information only, not legal advice. If you have a legal problem or need legal advice, you should speak to a lawyer. For the name of a lawyer to consult, call Lawyer Referral at 604.687.3221 in the lower mainland or 1.800.663.1919 elsewhere in British Columbia.

This script explains several details about owning a condominium. For information on buying a condo, refer to script 407, called “Buying a condominium, townhouse or strata lot”.

What is a “strata title” owner?
In legal terms, if you own a condominium unit, you own a strata title property. Ever since the first condominium was built in BC, strata title ownership has become an extremely popular way of owning real estate.

In a condominium development – or strata title project, as it’s technically known – there are three types of property:

• strata lots, which are the individual housing units owned by the individual owners,
• common property, and
• limited use common property.

Common property is the areas that are for the use of all the owners in common. In a typical project, common property includes the land the building is on, the walkways, parking areas, landscaping, exterior walls, interior hallways, and recreational facilities.

Limited use common property, found in some strata projects, allows some parts of the property to be for the exclusive use of certain owners. This could be a patio, balcony, parking space, or storage locker – which you don’t own, but which only you have the right to use, subject to certain restrictions. Copies of the plans outlining common and private property are filed at the Land Title Office.

Strata titled property can be a duplex, a bare land strata (like a subdivision of detached homes) or a mixed commercial and residential building. But the most common strata title projects are condominiums, which are the focus of this script.

What is a strata corporation and what does it do?
Each condo development is run by its own “strata corporation”. The owner of each strata lot has one vote in the corporation. The strata corporation is responsible for providing and paying for all equipment and services in the common areas. The law requires the strata corporation to repair and maintain common property and common assets, including elevators, gardens, recreational facilities, garbage, security, and exterior decoration. In some cases, it may also include water, heat, and power to each strata lot. The corporation must hold a general meeting of all owners at least once a year, when the annual budget is approved, the “strata council” is elected, and special resolutions, if requested, are voted on.

What is the strata council and what does it do?
The strata council is a group of strata owners that carries out the day-to-day management of the corporation. It usually consists of three to seven owners elected annually at the general meeting. In larger developments, the council may hire a professional management company to manage the common property and perform the management functions.

Maintenance fees
The strata corporation pays the expenses of the development by charging maintenance fees to owners. The corporation assesses each strata lot a share of the total cost of the expenses, based on the unit entitlement of the strata lot. The unit entitlement is related to the size of each strata lot. The corporation then charges each owner a monthly maintenance fee. That fee should also include an amount for the contingency reserve fund to pay for repairs or long-term improvements in the building, such as a new roof or heating system.

If an owner refuses to pay the monthly maintenance fee, the strata corporation may register a charge against that strata lot in the Land Titles Office, and in extreme cases may ask the court for an order to sell the property.

Insurance
The strata corporation must have fire insurance, as well as liability insurance for property damage, bodily injury and other perils or liability of the strata corporation. As a strata title owner, you should also have your own insurance for personal property and third-party liability.

What law applies to condominiums?
The BC Strata Property Act includes detailed bylaws that apply to all property and operations of every condominium. They set out the duties of owners, tenants, occupants, visitors, the corporation and the strata council, as well as the procedures at council and general meetings. The bylaws also allow the strata corporation to penalize owners who violate the bylaws. As well, the bylaws provide for voluntary dispute resolution. Copies of the bylaws may be registered at the Land Title Office.

In addition, each condominium may have its own set of rules. They apply only to the use and enjoyment of common property and common facilities.

Bylaws and rules spell out your rights and responsibilities and control what the place will be like to live in. Bylaws normally restrict or prohibit the renting out of units in the building. They may also restrict or prohibit pets and certain age groups, such as children. Bylaws and rules may control the size of your patio and regulate the use of the recreational facilities and other common property. Even if you understand the bylaws and rules before you buy, they can be changed at any time, if enough of the owners agree. Also, if you want to make changes to your condo unit that will affect other owners, such as changes to existing walls or plumbing or electrical systems, or outside changes that other owners can see, you will probably need permission from the strata corporation.

Renting your condominium
If you plan to live in your unit, you may want the other units to be occupied by their owners as well. Alternatively, you might buy the unit as an investment and want to rent it out. Some bylaws restrict the number of units that can be rented out. If you do rent out your unit, choose your tenant carefully. The strata corporation can hold you responsible if your tenant breaks a bylaw. It can also evict your tenant for a continuing breach of the bylaws.

For more information
Check the Strata Property Act and study the bylaws and rules for your project. You can get a copy of the Strata Property Act from Crown Publications in Victoria at 250.386.4636 or toll free at 1.877.747.4636. Some libraries also have copies of BC laws. Make sure you also get a copy of any amendments to the Act and the Regulations. You can also see the Act online at www.qp.gov.bc.ca/statreg. Click on “S” in the alphabetical list and then scroll down to the name of the Act and click on it.

The Financial Institutions Commission website – www.fic.gov.bc.ca – has detailed information on the Act: click on “Strata Property.”

Also, see the website of the Condominium Home Owners Association of BC at www.choa.bc.ca.

[updated July 2007]

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