When considering the purchase of a strata unit, it is important to obtain information about the strata corporation in order to make an informed decision. The strata documents, which include the bylaws and financial statements, can provide valuable insights into the strata corporation’s operations. In addition, minutes of meetings and other records can provide helpful information about strata council decisions and activities. As such, it is important to consult with a strata lawyer or strata manager to ensure that all necessary information is obtained before making a purchase.
A Strata Corporation’s financial and other records may be accessed by a potential buyer in a few ways.
Firstly, all strata documents are typically available for perusal by the public at the strata office. Secondly, if an individual is considering purchasing a strata unit, they may request to view the strata’s bylaws, financials, and minutes of council meetings from the strata corporation. Thirdly, some strata corporations post select information (e.g. meeting minutes, agendas) on their website or online bulletin board for owners and residents to view. There are also services like StrataPress.com that enable you to obtain documents easily online.
Finally, most strata corporations welcome questions from owners and prospective purchasers alike; thus, another route to gaining access to needed information would be to simply ask the strata council for the records in question. In sum, there are several methods by which a potential buyer may gain access to a Strata Corporation’s financial and other records.
The Strata Property Act entitles owners, or their delegates, authorized in writing, to inspect and obtain copies of all of the strata corporation’s records listed in Section 35 of the SPA. If an owner authorizes a buyer, in writing, to inspect the strata corporation’s records or to obtain copies of them, the corporation must allow the buyer to inspect and purchase copies of the records specified. Typically, a buyer obtains the owner’s authorization by negotiating a suitable provision in the parties’ contract of purchase and sale. If the buyer cannot inspect the records before signing a purchase agreement, they may require a contingency clause in that agreement.
Not Legal Advice - The material provided on the StrataPress website is for general information purposes only. It is not intended to provide legal advice or opinions of any kind and may not be used for professional or commercial purposes. No one should act, or refrain from acting, based solely upon the materials provided on this website, any hypertext links or other general information without first seeking appropriate legal or other professional advice. These materials may have no evidentiary value and should be checked against official sources before they are used for professional or commercial purposes. Your use of these materials is at your own risk.