This is a great question, with a simple answer and a long answer!
The Simple Answer: a strata property is any property where at least 2 owners share common space/roofs/walls/etc. This includes any condo building, townhouse complex or duplex (or triplex, fourplex, etc).
The Long Answer: In legal terms, a strata property is a “lot” in a building that has multiple units available for ownership. Collectively, the owners own the common areas, including lobbies, elevators, hallways, walls, roofs, common rooms, etc. When you purchase a Strata Lot, you become part of the building’s Strata Corporation and thus have a say in the maintenance and happenings in the building.
For detailed information about Strata’s, check out BC’s Strata Property Act Guideline and Resources.
Here are some key words to know:
Strata Corporation (the Strata): All owners of a Strata building, collectively.
Strata Council: A group of 3-7 owners who oversee the building and manage the day to day tasks and decisions with regards to maintenance, financials, bylaws enforcement and planning. If you’re really invested in the health and management of your building, you want to be on your Strata Council so you know exactly what’s happening. The members of the Strata Council volunteer every year and are voted onto the Strata Council by the Owners.
Property Management Company: The Strata Council works closely with the Property Management Company, which is an outside company hired to guide the Strata Council and manage the intricacies of building maintenance and financials. The representative from the Property Management Company, the Property Manager, is present at all building meetings and acts as the head of the Council. Owners contact the Property Manager whenever they need anything from the strata (i.e. renovation approval, elevator bookings, etc).
Strata Documents: These are the records related to the Strata Corporation, which includes meeting minutes, bylaws (see below), rules, financial statements, budgets, Engineering Reports, etc detailing everything you need to know about how the building is being managed. At any time, Owners can request to view the Strata documents. Most Property Managers offer an online portal where owners can easily access this information. For more information: What to Look for when Reading Strata Docs.
Meetings: The Strata Council holds regular meetings to discuss ongoing issues and building updates. For example, some discussion topics may include ongoing maintenance, upcoming projects, bylaw violations and regular financial reviews. Some Strata’s have monthly meetings, some have only a few per year. Every Strata has an Annual General Meeting (AGM) where big decisions need are voted on by the Owners in attendance. Details discussed and voted on at the AGM are the annual budget, bylaw changes, major maintenance requiring special levies, etc.
Common Property: The areas of the Strata Building that are owned by all the owners together. These areas include (if applicable) the: roof, gardens, lobby, hallways, elevator, recreation areas, gyms, pools, parkade, common rooftop decks, etc. These areas are maintained by the Strata Corporation.
Limited Common Property: This is common property that is only for use by certain people, yet is maintained by the Strata Corporation (i.e. your balcony, etc.). For example, your ground floor patio is for your use only, but is called “Limited Common” because the Strata may have to come on your property to maintain it – they will give you notice prior to access.
Unit Entitlement: This is the percentage of ownership of common areas is divided between every owner (for financial and insurance reasons), which is typically based on square footage. If you own the biggest suite in the complex, you technically own the biggest percentage of “ownable” common property. This means your Strata fee is higher because you own and “maintain” a bigger area of the building. Your Unit Entitlement can usually be found on the Strata Plan.
Strata Fee: A monthly fee that you pay to the Strata Corporation, used to pay for common bills and maintenance as detailed in the yearly budget. The Strata Fee is determined by applying the % of the building that you own (your Unit Entitlement) to the yearly budget. You’ll be fined if you don’t pay your Strata Fees and would run into legal trouble if you don’t pay for a few months.
Contingency Fund: Think of it as your building’s emergency bank account. Funds are pulled from here to pay for unexpected building repairs and other big expenses. A portion of your monthly strata fees goes towards the Contingency Fund. A healthy contingency fund can help reduce future costs to owners.
Special Levy: If a building requires maintenance outside of what was planned in the yearly budget, they will need to charge each owner a “special levy” to pay the cost. Special levies can be as low as a couple hundred dollars per unit for a simple project to tens of thousands of dollars per unit if the building needs major maintenance – this is why you don’t want to spend every dollar you have on purchasing a property. For more information about Special Levies: What are Special Levies for Condos?
Rain Screen: Simply put, a rain screen is an exterior wall design that helps to keep buildings dry. A rain screen is the space between the exterior wall of a building and the interior wall of a building (also called an air cavity) that allows for rainwater and condensation to escape before seeping into the interior wall of a building, thus avoiding moisture and mould problems inside units. For photos and more information: What is a Rainscreen?
Depreciation Report: Many buildings in Vancouver have a document called a Depreciation Report. This report details all the components in the building as well as their current age, their expected lifespan, year of replacement, and how much it is expected to cost to maintain or replace the item. The Depreciation Report will discuss everything from the roof, exterior, windows, balconies, elevator, parkade, fire system, boilers, pipes, hallways, lighting, etc. The estimates in Depreciation Reports are based on industry standard for product life span so projects can happen sooner or later than indicated and can be more or less expensive than indicated (assume a lot more!!). Some Depreciation Reports are really detailed, and some are really vague – it just depends on the company that completed the report. Buildings are not required to follow the advice of a Depreciation Report, but it is used as a guide on what to expect over the coming years and how to budget for the upcoming costs. These reports make it a lot easier for potential Buyers to understand what to expect for future building maintenance.
Strata Bylaws: Every Strata Corporation has a set of rules that every owner needs to follow. The BC Strata Property Act stipulates a set of Standard Strata Property Act Bylaws but Strata Corporations are allowed to add new Bylaws if approved by the Owners. Strata Bylaws touch on everything from rental restrictions, pet restrictions, age restrictions, smoking, noise, BBQs, Strata Council rules, amenity usage, cleanliness, etc. The Bylaws is a REALLY important document for any potential owner.
This is just a start about the intricacies of strata living. I’ve read PLENTY of strata documents over the years, and I’ve been on Strata in my own building. I will tell all my clients to join their strata at least for a few years as it’s a great opportunity to understand your building and make a difference in the short and long terms goals of the Strata. It’s annoying (there are a lot of emails) but it’s worthwhile.
If you have any other questions feel free to contact me: kristi@realestatevancity.ca.