Roles And Responsibilities of a Strata Corporation
A strata corporation is a legal entity as defined under section 2 of the Strata Property Act (SPA). They are not corporations as defined under the BC Corporations Act, so there is no incorporation certificate. A strata corporation has “natural person” powers: it can behave like a person as it can be sued, it can sue, and it can enter into contracts.
All strata corporations must have bylaws and may also have rules.
Their duties and responsibilities are outlined in Section 3 of the SPA:
Except as otherwise provided in this Act, the strata corporation is responsible for managing and maintaining the common property and common assets of the strata corporation for the benefit of the owners.
The specific obligations of the strata corporation are usually performed by the strata council, or by agents or employees it hires such as a strata property manager. Owners elect a strata council to carry out the duties and responsibilities of the strata corporation.
Overview of the primary responsibilities of a strata corporation:
- Keep, create and share information such as parking or depreciation reports.
- Hold general meetings.
- Prepare and issue forms for various aspects of the strata, e.g. for anyone who wants to buy a unit, a form outlining various fees, amenities etc.
- Communicate various items such as change in strata fees and legal proceedings.
Repair and Maintenance
- Doing repair and maintenance of common property and documenting it properly. This also helps the strata corporation and strata lot owners meet the home warranty insurance requirements.
- Maintenance of limited common property, which is for the sole exclusive use of the strata lot or lots, e.g. patios that are the sole responsibility of the owner and not the strata corporation.
- Handling emergencies.
- Paying common expenses – hydro, insurance, etc.
- Maintaining a contingency reserve and operating funds.
- Determining the amount of contributions owners must make to the operating fund and the contingency reserve fund.
- Preparing budgets and financial statements.
- Determining strata fees.
The role of the strata corporation is to ensure that all the common assets are properly insured. The property insurance must be on the basis of full replacement value and insure against major perils as out in the regulations and any other perils specified in the bylaws.
When renting out your home one of the most important decisions to consider is whether you should manage it yourself or do you hire a property management company to take care of it? Make a call to our offices at 604 913 1000 or email us and we will help you decide.