You've found the one. The layout works, the location is right, and your offer has been accepted subject to financing, inspection and a review of the strata documents. It's tempting to treat that last subject as paperwork.
It isn't. When you buy a condo, you're not just buying your unit. You're buying into a shared building, its finances and every decision the strata makes after you move in. The strata documents are where you find out what you're really signing up for, and once you remove subjects, your deal is firm.
Here's a breakdown of what the Strata documents tell us:
Start with the Form B
The Form B gives you a snapshot of the building's finances and obligations: the monthly strata fees, the balance of the contingency reserve fund, any special levies that have been approved, and any amendments or legal matters you should know about. Check whether the seller owes anything to the strata and whether any levies are coming up.
Council Meeting Minutes
The minutes are where the real story usually lives. Look for repeated mentions of leaks, roof or window problems, elevator or plumbing repairs, and insurance claims. Watch for any discussion of a future special levy, even if it hasn't been voted on yet. Ongoing disputes between owners, council or the developer are worth noting too.
One mention of a small repair isn't a red flag. The same issue showing up meeting after meeting is something to ask about.
Depreciation Report vs The Reserve Fund
The depreciation report looks ahead at the big-ticket items in the building, such as the roof, the envelope, the elevators and the mechanical systems, and estimates when they'll need repair or replacement. The contingency reserve fund is the money the strata has set aside to pay for them.
If major work is coming and the fund is small, owners usually make up the gap through a special levy or higher strata fees. If there's no current depreciation report, ask why.
Insurance and The Deductibles
Strata insurance costs have gone up for many buildings in BC, and in some cases that has pushed monthly fees higher. Look at what the strata is paying and whether the budget reflects it.
Its important to check the deductibles. If something in your unit causes damage, such as a leak from your dishwasher, you could be responsible for the strata's deductible. Make sure your own home insurance is set up to cover that amount.
The Bylaws
Think about how you'll actually use the home. Do you have a pet? Are you planning to renovate? Might you rent it out one day? Check what the bylaws and rules say so there are no surprises after you move in.
The Bottom Line
A condo can look perfect on a showing and still come with costs you can't see from the hallway. The strata documents are your best chance to spot them before your deal is firm.
Thinking about buying a condo in Burnaby? Reach out to our team. We go through the strata documents with our buyers before they remove subjects, so you know exactly what you're buying into.
