The British Columbia Real Estate Association (BCREA) and the Association of Interior Realtors (AOIR) are pressing the provincial government for a comprehensive review and update of the Strata Property Act. Citing outdated regulations that fail to keep pace with digital advancements and modern governance needs, the organizations highlight significant inefficiencies and frustrations within the current system, impacting over 1.5 million residents.
Key Takeaways
- The Strata Property Act, in place for over 25 years, requires modernization to address digital technology and current governance practices.
- Delays and excessive costs associated with obtaining strata documents, particularly the Form B: Information Certificate, are a major concern.
- Incomplete document packages are frequently delivered, leading to further complications and costs for buyers and sellers.
- Mandatory education for strata council members is proposed to improve governance and document management.
Outdated Legislation Hinders Modern Transactions
The Strata Property Act, which governs the creation, operation, and management of strata corporations, has not seen a significant update since its introduction over 25 years ago. This has led to a disconnect between the Act's requirements and the realities of modern digital technology, record-keeping, and buyer expectations. The BCREA and AOIR have formally communicated these concerns to the Ministry of Housing and Municipal Affairs, detailing issues such as cost disputes, lengthy wait times for essential documents, and incomplete information packages.
Document Delivery and Cost Concerns
A critical point of contention is the delivery of the Form B: Information Certificate, which is legally required within seven calendar days. However, many property management companies impose their own seven-business-day timelines, which can extend to 11 days due to weekends. This delay is particularly problematic in a fast-moving market. Furthermore, while the Act sets a low fee for the Form B ($35 plus per-page costs), expedited delivery can cost upwards of $500 to $600, with unregulated rush fees. In one cited example, a document package costing $151.38 saw its rush order price jump to $781.38, a 416% increase. Per-page fees can constitute a significant portion of the total cost, and these packages may need to be reordered multiple times for a single transaction.
Incomplete Packages and Lack of Recourse
Adding to the frustration, a recent memo indicated that 95% of strata document reviews conducted by Condo Clear were missing essential requested documents. This lack of completeness, coupled with high costs and little recourse for consumers and realtors, creates uncertainty and stress during complex real estate transactions. Joel Fox, COO of Ownright, notes that buyers are often overwhelmed by hundreds of pages of technical documents under tight deadlines, potentially leading them to make significant financial decisions without full understanding.
Proposed Solutions for a Modernized System
To address these issues, the BCREA and AOIR propose several policy changes:
- Implementing fair and transparent rush fees.
- Allowing critical documents to be reordered at a reduced price.
- Shortening document delivery timelines and updating processes for the digital age.
Enhancing Strata Governance Through Education
Beyond document delivery, the organizations advocate for mandatory education for strata council members. This initiative, modeled on Ontario's director training, aims to equip volunteer council members with the knowledge to make informed financial decisions, manage buildings proactively, and resolve disputes effectively. Given the increasing complexity of strata developments, including mixed-use buildings and evolving legislation, enhanced training is seen as crucial for maintaining well-managed and resilient communities. While organizations offer voluntary education, making it mandatory would establish a consistent baseline of knowledge and reduce reliance on management companies facing their own staffing challenges.
