If you have ever purchased a condo for sale in Victoria, you would have likely been given a set of documents about the condo building called strata documents.
In any strata purchase, these documents are incredibly important. The proper name for a "condo building" is a "strata corporation." As the name suggests, it is actually a fully functioning corporation that has the same rights, responsibilities, and liabilities as any other person.
In other words, what you are buying is not just a home but also a piece of a corporation. When you normally buy a piece of a corporation (i.e. stocks), you do a lot of research on the finances and minutes of a company. So why would it be any different when buying a condo?
Arguably, you will be even more involved in the strata corporation compared to the stock market and, on average, there are less experienced people running a strata corporation (read: the owners) compared to a CEO of a major corporation. Suffice to say, there is a lot at stake when you purchase a strata property.
Some of the strata documents you will receive when making an offer on a condo include:
- strata plan
- Form B information certificate
- 24 months of meeting minutes (if the corporation has been an entity for at least 24 months)
- bylaws and rules
- rental disclosure statement
- depreciation report
- warranty documents
- two years of financials
- annual general meeting (AGM) and special general meeting (SGM) minutes
So much information is pack into these minutes and it is key that you know what you are looking for. It's easy (albeit tedious and sometimes boring) to read through the 300+ pages of documents, but it can be difficult for the average buyer to know what they should be looking for and to know if anything is missing in these minutes.
For example, do you just assume that all of the meeting minutes are there? Did you read at the bottom of the March 2017 Strata Minutes to see that the next meeting is scheduled for April 2017, but the next meeting in your package is May 2017 Strata Minutes? I can tell you that these errors happen all the time when getting a package of minutes.
Kaley and I have read the minutes of over 200 Strata Corporations, so we know our stuff. We are here to make sure your condo transaction goes as smoothly as possible and to give you the confidence in your purchase that you're buying into a solid strata corporation.
If you are looking for a trusted source to help you find the perfect condo, please don't hesitate to contact us.
Until next time!
Mike + Kaley