Strata Properties in Kelowna and the Okanagan: Frequently Asked Questions

Strata is the most common ownership structure for condos and townhouses in Kelowna and across the Central Okanagan. This page covers how strata works in BC, what the documents mean, and what to look for before you buy.

What is a strata property in BC?

A strata property is a building or complex where individual units are owned separately and common areas are owned collectively by all unit owners. In BC, strata properties are governed by the Strata Property Act. Condos, townhouses, and some bare land developments are all common strata structures in Kelowna and the Central Okanagan.

What are strata fees and what do they cover?

Strata fees are monthly payments made by each unit owner to the strata corporation. They cover two things: operating expenses for the building such as insurance, landscaping, utilities for common areas, and management fees, and contributions to the contingency reserve fund for future major repairs. Strata fees in Kelowna vary widely depending on building age, amenities, and size. Expect anywhere from $200 to $800 per month for a typical condo.

What is a contingency reserve fund?

The contingency reserve fund (CRF) is money set aside by the strata corporation for major future expenses such as roof replacement, elevator repair, parking lot resurfacing, or window replacement. BC law requires strata corporations to maintain a CRF. A well-funded CRF reduces the likelihood of special levies. Before buying, check both the current CRF balance and the depreciation report to understand whether it is adequately funded.

What is a depreciation report and why does it matter?

A depreciation report is a long-term financial planning document that assesses the condition of the building's common property components and estimates the cost of replacing them over a 30-year period. BC strata corporations with five or more lots are required to obtain one every five years. The report tells you whether the CRF is sufficient to cover upcoming costs or whether a special levy is likely. Always read the depreciation report before buying a strata unit.

What is a special levy in a BC strata?

A special levy is a one-time charge assessed to all unit owners to cover a major expense that the contingency reserve fund cannot fully cover. Special levies can range from a few hundred dollars to tens of thousands depending on the project. They are voted on at a general meeting and require a three-quarters vote to pass. When reviewing strata documents, check the minutes for any approved or proposed special levies.

What documents should I review before buying a strata unit in BC?

Before removing subjects on a strata purchase in BC, review the Form B Information Certificate, strata bylaws and rules, current budget and financial statements, contingency reserve fund balance, depreciation report, and minutes from the last two years of council and general meetings. The minutes are often the most revealing document. They show disputes, ongoing issues, deferred maintenance, and the financial health of the corporation.

What is a Form B in a BC strata transaction?

A Form B is an Information Certificate issued by the strata corporation that discloses key details about the specific unit and the strata as a whole. It includes the current strata fee amount, any outstanding strata fee arrears on the unit, approved or proposed special levies, current CRF balance, and any legal proceedings involving the strata. The Form B is a required disclosure in BC strata transactions.

Can a strata corporation restrict rentals or pets in BC?

BC amended the Strata Property Act in 2022 to prohibit strata corporations from enforcing rental restriction bylaws. Strata corporations can no longer ban or limit rentals in their buildings. Pet restrictions, however, are still permitted. Bylaws can restrict the type, size, or number of pets allowed. Always review the bylaws for the specific building before buying if pets are a consideration.

What is bare land strata in the Okanagan?

Bare land strata is a form of strata ownership common in the Okanagan where each owner holds title to their own lot and the buildings on it, while sharing ownership of common roads, amenities, or green space. It is common in recreational and rural developments. Bare land strata owners still pay strata fees for maintenance of common areas and are subject to strata bylaws, but they own and are responsible for their own structure.

How do I know if strata fees are reasonable for a building in Kelowna?

Compare the fee to similar buildings of the same age and amenity level. Older buildings with elevators, pools, or underground parking will have higher fees than newer wood-frame walk-up buildings. A low strata fee is not always a positive sign. It may indicate that the CRF is underfunded or that necessary maintenance is being deferred. Review the depreciation report and financial statements alongside the fee to get the full picture.

More Questions About Buying in the Okanagan

• Buying a Home in Kelowna BC
• BC Property Transfer Tax and Closing Costs
• Peachland to Vernon Real Estate Guide
• Working With a Buyer's Agent in Kelowna BC
• Leasehold Properties in Kelowna and the Okanagan
• Back to the FAQ Index

Have a question not covered here? Call or email directly.

Phone: 250-258-4663
Email: michaeljones@royallepage.ca

All for now,
Michael

This page is for general informational purposes only. It does not constitute legal advice or financial advice. Strata fees, CRF balances, depreciation report requirements, bylaw restrictions, and special levy rules vary by strata corporation and are subject to change. Review all strata documents with your REALTOR and confirm legal matters with a qualified BC real estate lawyer before making any purchase decisions. Michael A. Jones is a licensed REALTOR with Royal LePage Kelowna and is not a lawyer or financial advisor.