Pitfalls To Watch For When Buying A Strata

• Low contingency funds - Make sure the building’s fund for emergencies and repairs is not depleted. If it is, does the strata have a plan to increase the fund to a healthier level?

• Missing minutes - Make sure you have a full set from your realtor prior to removing subjects. Tip: At the end of the minutes, there is an alert as to the scheduling of the next strata meeting.

• Large budget deficits - Do strata fees need to rise to cover the deficit? 

• Upcoming proposed/approved assessments - Will the seller pay? Will the assessments increase the future value of the building (roof, plumbing, new envelope... yes)? Will a hold-back be required?

• Check the age of the roof, plumbing, boiler (if any). Look for excessive leaking in the parkade, and proper ventilation in the storage area.

• Check the strata bylaws to make sure your intended use for the property is allowed. Some examples would be: - hardwood floor restrictions
- BBQ restrictions
- pet restrictions (type of pets, # of pets, size/weight restrictions, etc.)
- rental restrictions (no restrictions, unit % restrictions, or unit # restrictions)
- age restrictions (55+, or 19+)

• Outstanding resolutions to change bylaws. Make sure there are no 3/4 vote resolutions to amend bylaws that may affect your intended use of the property.

• Seller’s standing with strata and property manager (eg. check to make sure there isn’t litigation against the seller; ensure no outstanding strata fees are owing)

• Non-active strata councils. All buildings require ongoing maintenance - look for a strata which is diligent in maintaining the property and balancing the budget.

Buying a strata can be a complicated process with many pitfalls facing buyers. However, hiring a qualified and experienced realtor to guide you can ensure a rewarding strata experience.