When buying a condo or townhome in Greater Vancouver, it can be tempting to compare properties by looking at their monthly strata fees.

A lower fee may seem like a better deal—but the amount alone does not tell you whether a strata corporation is being managed responsibly or whether significant expenses may be coming.

Before purchasing a strata property, here are six important questions to ask.

1. What Does the Strata Fee Cover?

Strata fees help pay for the operation and maintenance of the common property. Depending on the complex, they may cover:

• Building insurance

• Common-area utilities

• Property management

• Caretaker or concierge services

• Cleaning and landscaping

• Garbage and recycling

• Elevator servicing

• Routine repairs and maintenance

• Contributions to the contingency reserve fund

Every property is different. Some strata fees may also include services such as gas, heat or hot water, while others may not.

Review the current budget carefully so you understand exactly what is included and how the money is being spent.

2. Will You Still Need Personal Insurance?

Yes. The strata corporation’s policy insures the building and common property, but it does not replace the buyer’s own condominium insurance.

Owners generally need personal coverage for their belongings, liability, improvements made to the unit, additional living expenses and other potential costs that may not be covered by the strata corporation’s policy.

Before purchasing, review the strata’s insurance summary and speak with an insurance professional about the coverage you will need as an owner.

3. Is a Low Strata Fee Actually a Good Sign?

A low strata fee can be attractive, but it is not automatically a sign of a well-managed building.

It may mean the property is inexpensive to operate. However, it could also mean the strata is contributing too little toward future repairs or postponing necessary maintenance.

A higher fee may include more services, stronger contributions to the contingency reserve fund or expenses that another complex charges separately.

Instead of asking only whether the fee is high or low, ask whether it is realistic for the building’s age, amenities and maintenance requirements.

4. What Do the Financial Records and Reports Reveal?

The contingency reserve fund is intended to help pay for major repairs and replacements that do not normally occur every year.

Find out how much money is currently in the fund, but do not stop there. Ask what expenses have already been approved and what work may still need to be completed.

The depreciation report is also important. It helps identify major building components, estimates when they may need repair or replacement, and projects the associated costs.

Buyers should also review any available engineering or inspection reports. These documents may contain important information about the building envelope, roof, plumbing, balconies, windows or other systems.

A large contingency fund can sound reassuring, but it must be considered alongside the building’s future needs.

5. Are There Any Special Levies?

A special levy is an additional amount owners may be required to pay for a particular project or expense.

Find out whether any special levies have already been approved and whether others are being discussed or considered. Review the estimated cost, the payment schedule and the purpose of the work.

It is also essential to determine who will be responsible for paying an approved levy—the seller, the buyer or both. This can depend on the timing and the terms of the purchase contract, so it should be clarified before conditions are removed.

Review at least the previous 24 months of strata council, annual general meeting and special general meeting minutes. The minutes may reveal projects or concerns that have not yet resulted in a formal levy.

6. What Is the Condition of the Building?

The age of the building matters, but its maintenance history matters just as much.

Important questions may include:

• Has the building been rainscreened?

• How old is the roof?

• Have the windows or balconies been replaced?

• What is the condition of the plumbing?

• How old are the boilers or hot-water tanks?

• Are any major repairs expected?

• Have owners been discussing future upgrades or special levies?

The answers help create a clearer picture of what the property may cost to own—not only this year, but over the years ahead.

Read the Documents and Arrange an Inspection

A strata purchase involves more than evaluating the individual unit. You are also buying into the financial health, maintenance history and decision-making of the entire complex.

Read the strata documents and meeting minutes carefully, ask questions about anything unclear, and arrange a professional inspection. An inspection may identify concerns inside the unit and provide useful observations about visible building components.

The goal is not necessarily to find a building with the lowest monthly fee. It is to understand what you are buying, how the property has been maintained and whether you are comfortable with its financial outlook.

If you are considering a condo or townhome in Greater Vancouver, I would be happy to help you review the available information, ask the right questions and make a confident, informed decision.

Maria Menjou
Greater Vancouver REALTOR®
Guiding Families Home Since 2002

Let’s talk