Strata documents: what a buyer's agent should review

The package

A strata document package typically includes the strata plan, bylaws and rules, the current budget, minutes of recent meetings (usually the last two years), any depreciation report, and the Form B Information Certificate. Ask the listing side for whatever is missing.

What to look for in the minutes

Minutes show how the strata is actually run. Read them for:

• Ongoing disputes between owners, or between the strata and a developer.
• Major repairs that have been identified but not carried out.
• Talk of special levies or large upcoming assessments.
• Bylaw enforcement actions and owner conduct issues.
• Changes to parking, storage or common areas that could affect the unit.

The depreciation report

A depreciation report estimates the cost of replacing major building components, such as the roof, elevators, pipes and windows, over the long term, with a funding plan. Where one exists, compare any funding shortfall with the current balance in the contingency reserve fund. A large gap between projected needs and reserves is a warning of future special levies.

If there is no current report, ask why and what the strata has done instead, and let the buyer weigh the uncertainty.

The Form B Information Certificate

The Form B discloses the lot's financial position: the monthly strata fee, any amounts owing, and any special levies that exist or are planned. Confirm it is current, that fees are paid, and that no surprise levies are scheduled. Check bylaws that affect how your buyer will use the unit, such as rental, pet and short-term rental rules.