Buying a condo or townhome in British Columbia isn't just about deciding whether you like the home.

When you purchase a strata property, you're also buying into a shared corporation, its financial position, its rules, its maintenance history, and potentially its future expenses.

That means your due diligence should extend well beyond the four walls of the property.

A knowledgeable Realtor can help you obtain and review important strata documentation, identify items that deserve further investigation, and help you determine when additional professional advice may be appropriate.

Here are some of the areas buyers should pay particular attention to.

1. Make Your Offer Subject to Appropriate Due Diligence

Depending on the transaction, your offer may include conditions allowing you time to complete investigations before committing to the purchase.

These could include reviewing strata documents, arranging financing, completing a home inspection, reviewing title, or obtaining other professional advice.

The appropriate conditions will depend on the specific property and transaction.

Your Realtor should discuss the available options with you rather than relying on a one-size-fits-all approach.

2. Read the Strata Council Meeting Minutes

Meeting minutes can provide valuable insight into what's actually happening within the building.

Don't simply look at the most recent meeting.

Review the available history and look for recurring discussions involving:

• Water leaks or plumbing problems

• Building-envelope concerns

• Roof repairs

• Elevator problems

• Parkade or membrane issues

• Drainage

• Insurance claims

• Security problems

• Noise complaints

• Legal disputes

• Repeated repairs to the same building component

• Discussions of future major projects

One mention of a repair doesn't necessarily mean there is a serious problem.

Repeated references to the same issue, however, may warrant additional investigation.

3. Look Beyond the Minutes

Meeting minutes are only one part of strata due diligence.

Depending on the property and the documents available, buyers may also want to review items such as:

• Form B Information Certificate

• Current strata budget

• Financial statements

• Bylaws and rules

• Depreciation report

• Annual General Meeting minutes

• Special General Meeting minutes

• Information concerning special levies

• Insurance information

• Engineering or building reports where available

The goal isn't simply to collect documents.

It's to understand what those documents may tell you about the property you're considering purchasing.

FIND YOUR BUYERS GUIDE HERE!

4. Understand the Contingency Reserve Fund

A strata corporation's Contingency Reserve Fund — commonly called the CRF — helps pay for expenses that occur less frequently than once a year or that do not usually form part of the operating budget.

The size of the fund can be important, but the balance shouldn't necessarily be considered in isolation.

For example, a strata could have substantial savings while also facing an expensive upcoming project.

Another strata could have recently completed significant capital work that reduced its CRF.

This is where the depreciation report, financial statements, budgets and meeting minutes become particularly valuable.

5. Investigate Special Levies

A special levy can require owners to contribute additional money toward a particular expense or project.

When reviewing a strata property, buyers should investigate whether there are:

• Approved special levies

• Recently completed levies

• Proposed levies

• Major projects being discussed that could potentially require future funding

If a levy exists, your Realtor can also help clarify how responsibility for that levy is addressed within the proposed Contract of Purchase and Sale.

6. Pay Attention to the Depreciation Report

A depreciation report can provide useful information regarding major building components and anticipated repair or replacement requirements.

Rather than focusing exclusively on the estimated dollar figures, look at the bigger picture.

What major building components are approaching the end of their expected useful lives?

Are several significant projects forecast within a similar timeframe?

How does the strata currently plan to fund those expenses?

The depreciation report should also be considered alongside newer information contained in meeting minutes and other strata documents.

7. Review the Bylaws Before You Buy

Strata bylaws can materially affect how you use your property.

Depending on your circumstances, pay particular attention to rules involving:

• Pets

• Rentals

• Renovations

• Smoking

• Parking

• Storage

• EV charging

• Common property

• Move-in and move-out procedures

• Short-term accommodation

• Use of balconies and patios

Don't assume the rules at one building will be the same as another.

8. Watch for Patterns, Not Just Individual Problems

Virtually every established building will have maintenance issues at some point.

The more important question is often how the strata responds to them.

For example, repeated references to water intrusion over several years may deserve considerably more investigation than one isolated plumbing repair.

Similarly, recurring discussions about a major project without a clear resolution or funding plan could be something a buyer should understand before removing conditions.

9. Know When to Bring in Another Professional

A Realtor can help identify questions and documentation that deserve closer attention, but Realtors aren't engineers, lawyers, accountants or building inspectors.

If the documents reveal significant technical, financial or legal concerns, further investigation by an appropriately qualified professional may be advisable.

That distinction is important.

Good representation isn't about pretending to have every answer.

It's about knowing what questions need to be asked before you buy.

Thinking About Buying a Condo or Townhome?

At Coastal Key Homes, my goal is to help buyers approach strata purchases with a clear understanding of both the home they're purchasing and the strata corporation they're joining.

From document review and property searches to negotiations, conditions and closing, I'll help you navigate the process and identify areas that may require additional investigation.

Buying a strata property in Greater Vancouver?

Contact Ian at Coastal Key Homes to start your property search or discuss an upcoming purchase.

This article provides general information only and should not be relied upon as legal, engineering, accounting, inspection, or other professional advice. Every property and transaction is different, and buyers should obtain appropriate professional advice when required.