What to Look for in Strata Documents Before You Buy
Your condo real estate agent in North Vancouver should know that buying a condo is more than just finding the perfect unit—it’s about understanding the strata corporation to ensure you're making a smart financial decision. Strata documents provide key insights into the building’s financial health, bylaws, insurance coverage, upcoming expenses, and potential legal risks, helping you avoid costly surprises and protecting your investment.
If you don’t review these documents carefully, you could face unexpected costs, restrictions, or legal issues after moving in. In this guide, we’ll walk through seven key things you must check in strata documents before buying a condo.
📌 Disclaimer: This is for informational purposes only and should not be considered real estate advice. Always verify information independently and consult with a qualified professional before making any real estate decisions.
1. Ensure Form B is Up to Date
Lenders Require a Current Form B
A Form B (Information Certificate) is one of the most important documents in a strata purchase. It provides essential details, including:
Monthly strata fees
Any outstanding special levies
The contingency reserve fund balance
Legal actions the strata may be facing
Parking & storage allocations
📌 Why This Matters:
If there was a recent AGM (Annual General Meeting), Form B must be updated with any changes. Lenders require an up-to-date Form B for financing approval.
Confirm parking & storage allocations – Verify that what the seller claims aligns with the registered strata records.
🔎 Pro Tip: Always request the most recent Form B, especially if an AGM was held after it was first issued.
2. When is the Next AGM? Timing Matters
Is the Next AGM Before or After Completion?
A special levy passed before you take possession is typically the seller’s responsibility in BC, but it's always best to remove uncertainty by clarifying who is responsible for payment before finalizing your purchase.
Bylaw changes made at the AGM could impact rental restrictions, pet policies, or renovation approvals, affecting how you use the unit.
If the AGM is scheduled after your completion date, you may not have insight into upcoming financial decisions or special levies before committing to the purchase. Completing after the AGM is often beneficial for buyers, but it doesn’t always align with the rest of your plans—check with your realtor to determine the best timing for your situation.
🔎 Pro Tip: If the seller has already received an AGM notice, review it carefully to identify potential financial impacts.
3. Strata Building Insurance – Are You Covered?
Check Insurance Deductibles & Dates
Strata corporations are required to have building insurance, but deductibles have increased significantly in recent years.
📌 What to Check:
Deductible amounts – Strata insurance deductibles can range from $20,000 to $1.0M, so ensure your homeowner’s insurance is sufficient to cover the strata building insurance deductible to avoid unexpected out-of-pocket costs.
Valid dates – Strata insurance renewals do not always align with the AGM date, so check when the current policy expires.
4. Are There Any Legal Actions Against the Strata?
Could You Be Exposed to a Lawsuit?
Strata corporations can be involved in legal disputes that may impact current and future owners. Common lawsuits involve:
Contractors – Disputes over building repairs, maintenance work, or service contracts.
Owners or tenants – Lawsuits related to bylaw enforcement or strata council decisions.
Developers – Deficiency claims in new buildings where the strata is seeking repairs for construction defects.
📌 Why This Matters:
If a lawsuit is ongoing, owners may be responsible for legal costs and settlements.
Legal disputes can delay necessary repairs or lead to higher strata fees in the future.
A pending deficiency lawsuit against a developer could indicate unresolved construction defects.
🔎 Pro Tip: A lawsuit doesn’t necessarily mean “don’t buy”—many stratas in BC file lawsuits against their developers to ensure proper repairs are made. The key is to be aware of any legal action and understand its potential impact. If a lawsuit is disclosed, you can always consult a lawyer for further clarification. Always check Form B and AGM minutes for references to lawsuits, legal disputes, or pending claims.
5. Contingency Reserve Fund (CRF) – Is It Adequate?
A Well-Funded CRF Means a Well-Managed Strata
The Contingency Reserve Fund (CRF) is the strata’s savings account for major repairs and capital expenses.
📌 What to Look For:
A low CRF could mean upcoming special assessments to cover major repairs.
Check the depreciation report – Does the CRF have enough money to cover future repairs?
If the building is older and the CRF is low, expect higher costs down the road.
🔎 Pro Tip: Compare the CRF balance against planned maintenance projects to see if the building is financially stable.
6. Depreciation Report – Future Maintenance Costs
Does the Strata Have a Long-Term Maintenance Plan?
A depreciation report outlines the expected lifespan of major building components, such as:
Roof replacement
Plumbing and electrical systems
Elevator maintenance
📌 Why This Matters:
If the building has no depreciation report, owners may not be properly budgeting for future repairs.
A lack of planning often results in sudden special levies.
Stratas that regularly update their depreciation report show strong financial management.
🔎 Pro Tip: Newer buildings may not have a depreciation report yet, so ask how they plan to manage long-term repairs.
7. Electronic Planning Report (EPR) – What’s Coming?
Strata corporations with five or more units must obtain an Electrical Planning Report (EPR) by December 31, 2026, or December 31, 2028, depending on location in BC. This report assesses current electrical capacity and plans for future demand, such as EV chargers and heat pumps.
📌 Why This Matters:
Helps strata manage energy use and avoid costly upgrades.
Identifies electrical limitations that could affect future unit owners.
Stratas may need to implement demand management strategies to keep costs down.
🔎 Pro Tip: If an EPR hasn’t been completed, future electrical upgrades could lead to higher strata fees or special levies. Ask your realtor if an EPR is available before
Bonus Tip: Get Professional Help Reviewing Strata Documents
Strata documents can be complex and time-consuming to review, but there are professional services that specialize in strata document reviews for a fee. These companies analyze financials, bylaws, meeting minutes, and potential red flags to give you a clearer picture of the building’s overall health. Search online for strata document review services or check with your real estate agent for recommendations.
Final Thoughts
Understanding strata documents before buying a condo is essential for making a smart real estate decision, but not all agents have the same expertise. Different real estate agents specialize in different property types, so if you're buying a condo, make sure your Condo Real Estate Agent in North Vancouver is highly knowledgeable about strata properties. By reviewing Form B, AGM dates, insurance policies, legal disputes, the contingency fund, depreciation reports, and the EPR, you can avoid unexpected surprises and protect your investment.
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