Strata management FAQ
Following are some of the more frequently asked questions that we receive from Strata Owners, Strata Managers, and Strata Councils. Please note that this information is for reference only, and does NOT substitute for legal advice from a lawyer. Please consult a lawyer before making any legal decisions regarding this information.
- How many people can sit on a strata council?
This would be determined by your strata bylaws. If using the standard strata bylaws, the number is 3-7 members.
- Can we remove someone from our strata council before his/her term is up?
Yes, a strata council member can be removed from council with or without cause by a majority vote of the owners at a general meeting.
- Can I be paid for sitting on strata council?
Yes, you can be paid if permitted through either the annual budget, the bylaws, or a 3/4 vote of the owners in a resolution.
- As an owner of a strata lot, can I attend a strata council meeting even if I am not a council member?
Yes, you can attend the meeting as an observer.
- Can strata council approve an expense from the CRF without asking the other owners?
Yes, but only in the case of an emergency. This would be to prevent significant loss or damage, or for a safety issue. For all non-emergency expenses a 3/4 vote is required to pass a resolution at an AGM or SGM.
- Can an owner who is also a REALTOR be a strata council member?
Yes, a REALTOR can also sit on strata council as long as there is no conflict of interest and the council member is acting in the best interests of the strata corporation.
- I am in arrears on my monthly strata fees. Can my strata corporation charge me interest?
Yes, a strata corporation can charge interest on late strata fees if the corporation adopts a bylaw to do so. The maximum allowable interest rate is 10% per annum, compounded annually.
- Can a strata corporation prevent a strata lot owner from voting if they are in arrears on their strata fees?
Yes, but only if a bylaw has been passed that prevents an owner from voting if the strata corporation is entitled to register a lien against the lot.
- What happens if an operating budget gets voted down at an AGM?
The Strata Corporation must then prepare a new budget and hold an SGM within 30 days of the AGM to vote on approving the new budget.
- What is the minimum allowable insurance coverage for a strata corporation?
A strata corporation must have at least $2 million in liability coverage, preferably more if the property has facilities such as a pool or fitness center.
- Can our strata corporation borrow money by mortgaging out the guest suite which is shown on the strata plan as common property?
No, common property cannot be mortgaged according to the Strata Property Act
- Do rules have to be filed at the land titles office?
No, rules are adopted by strata council via majority vote, and do not have to be filed with land titles. These rules are generally included in the council meeting minutes.
- Can the spouse of an owner who is not on the strata lot title stand for strata council?
No, unless a bylaw has been passed which allows the spouse of an owner to run for council.
- Can our strata corporation borrow money from our contingency reserve fund to cover a cash shortfall in our operating fund?
Yes, but only if the loan is repaid by the end of the fiscal year AND the loan is for the purposes of covering temporary shortages in the operating fund resulting from expenses being due and payable before the contributions are available in the fund. A common example of this type of loan would be to pay an insurance premium.
- If a 3/4 vote is required to pass a resolution, are 3/4 of all the strata lot owners required to pass the resolution, or only 3/4 of the strata lot voters present at the meeting?
Only 3/4 of the voters present at the meeting or either by proxy or by person are required to pass a 3/4 resolution.
- For a resolution requiring a unanimous vote of strata lot owners, if all the voters present at the meeting vote to pass the resolution, will this resolution pass?
No, for a resolution requiring a unanimous vote, ALL eligible owners in the strata corporation must be present either in person or by proxy at the meeting, and vote in favour of the resolution. If even one owner does not show up for the meeting, or votes against the resolution, the resolution will NOT pass.
- What types of resolutions require a unanimous vote by a strata corporation?
Some of the more common resolutions requiring a unanimous vote by a strata corporation would be removing or changing the designation of limited common property, and changing the unit entitlement of each strata lot from what is currently stated on the strata plan.