Strata Governance and Compliance. Do you know the difference?

Strata Governance and Compliance

The Strata Property Act regulates the creation and operation of strata corporations. A strata corporation is a unique form of real estate development that permits multi-unit developments, each with an individual title, to be created on a single parcel of land. Strata plans may be filed to create multi-unit developments ranging in size from two to hundreds of units. 

The units may be for residential, commercial, industrial, or recreational use or some combination of these various uses. When a strata plan is filed in the Land Title Office, a strata corporation is created. Thus, a two-unit duplex may be a strata corporation.

Some operational requirements are that every strata corporation must have bylaws, it must hold Annual General Meetings and keep minutes of the meetings, it must retain records relating to the strata corporation, the owners must approve a budget annually and the strata corporation must maintain operating and contingency reserve funds.

Regardless of the size or way in which the units are to be used, the Strata Property Act and the Regulation apply to govern the strata corporation's operation. Strata Councils and owners should be aware that The Strata Property Act of BC and the Regulations were created to provide the owners of strata corporations a means to self-government of their strata corporations and the Act is not enforced by the Provincial government. 

Therefore, strata corporations may Self-Manage or employ the services of a Strata Management Company, like All Property Consulting Inc. for example, to assist in the management.

Generally, strata corporations that are managed by a Strata Management company are more likely to comply with the legislative requirements, however there are many self-managed strata corporations that are well informed regarding the requirement of the legislation and are diligent in their efforts to comply.

Often it is found that some self-managed strata corporations tend to be less familiar with the requirements of the legislation. It is not uncommon, for example, for duplex owners to deny that they are part of a strata corporation and thus fail to hold general meetings, approve budgets and maintain operating and contingency reserve funds. 

Some owners even believe that the legislation exempts smaller strata corporations from the need to comply with the legislation. Others believe that The Strata Property Act does not apply to strata developments used for commercial or industrial purposes. Such beliefs are incorrect. 

Neither the Strata Property Act nor the Regulation contains exemptions from the governance requirements for any strata corporation.

Related Article:

Your Strata could be NON COMPLIANT! How do you know for sure?

More Strata Governance Pages & Articles:
 

• Strata Governance & How We Can Help
   
• The Truth About Strata Depreciation Reports
• Are There People in Your Strata Complex Getting a Free Ride?
• Myths Surrounding the Dreaded Strata Depreciation Report
• Strata Governance and Compliance. Do you know the difference?
• Your Strata could be NON COMPLIANT. How do you know for sure?
• Is Your Strata properly insured? Many are not and don't know it!
• How to avoid Personal Liability as a Strata Council Member
• One of the most neglected & misunderstood areas of the Strata Property Act
• Have strata council's expenditures been approved? How do you know?