POWERS AND DUTIES OF A STRATA CORPORATION & THE ROLE OF THE STRATA COUNCIL Presented by: Sean Ingraham - FirstService Residential Jamie Bleay - Access Law Group

Introduction Awareness of powers and duties, roles and responsibilities and what can and should be delegated is essential to avoid internal and external challenges to decision-making, including financial and non-financial decisions.

Agenda – Duties and Responsibilities 1.Strata Corporation and the Strata Property Act 2.Strata Council and the Strata Corp. Bylaws 3.Strata Management Company’s role 4.Onsite functions 5.Bringing it all together 6.Questions and answer

Strata Corporation What exactly is a Strata Corporation? A Strata Corporation is a legal entity that comes into existence when the strata plan is filed in the land title office which allows for the subdivision of a parcel of land “into separate components, called strata lots, individually owned along with common components, called common property, owned by all owners.” (section 2 & guide # 3- Province of British Columbia – Role and Responsibilities of Strata Corporations)

Strata Corporation Power and Duties A Strata Corporation’s general responsibility is created through the Strata Property Act in Part 2 Section 3 which states: A Strata Corporation is responsible for managing and maintaining the common property and common assets of the Strata Corporation for the benefit of the owners.

Powers & Duties of a Strata Corporation Powers and duties under the Act include: Preparing and keeping records - Section 35 Entering into contracts – Section 38 Holding annual and special general meetings – Sections 40 and 42 A Strata Corporation is required to have an annual budget for annual operating expenses Part 6 – Finances

Powers & Duties of a Strata Corporation Duty to repair and maintain common property – Section 72 Power to borrow money – Section 111 A Strata Corporation can sue (and be sued) as a representative of the owners – Part 10 – Legal proceedings and arbitration Power to sue an owner for monies owing – sections 112 to 118 Power to make bylaws and rules – Part 7 – Bylaws and rules Power to enforce bylaws and rules - Section 26

Strata Corporation and the Strata Property Act Under the bylaws: Considerable decision-making powers and dispute resolver– see bylaws 3, 5, 6, for example Debt collector – bylaw 1 Refinement of repair and maintenance obligations – bylaw 9 Spending/spending restrictions – bylaw 21 Fines – bylaw 23

Strata Corporation and the Strata Property Act The Strata Corporation therefore has a wide variety of duties and responsibilities. Who will exercise the power and duties of the Strata Corporation?

Strata Council and the Strata Property Act Strata Councils! Part 4 of the Strata Property Act The eligible voters (ownership) must elect a Council. The Council must exercise the powers and perform the duties of the Strata Corporation.

Strata Council and the Strata Corporation Bylaws Clarifying the Strata Council Role. Bylaws outline important information: Council make up and size Officer positions Ability to delegate Meeting guidelines More duties and responsibilities

Duties and Responsibilities: Obtain quotes for landscaping, carpet cleaning, powerwashing of parkade/sidewalks/window washing etc. Guide strata through major building repairs Obtain engineers report / depreciation report Maintain and coordinate schedule for maintenance of quarterly, semi and annual building items i.e in-suite fire inspections, alarm monitoring, elevator(s), winterization, emergency generator etc., Educate owners on various issues i.e. security in and around strata, bylaw infractions, importance payment of strata fees, insurance Send correspondence on behalf of strata council- letters, building notices, meeting minutes, etc. Maintain and provide financial records, insurance, appraisal and all strata records Issue Form F and Form B’s for realtors/lawyers for sale of units Attend and record council meeting minutes and provide agenda and necessary attachments. Ensure Annual General Meetings are held and if necessary Special General Meetings. Provide knowledge/interpretation of Strata Property Act Liaise with onsite staff and contractors when necessary Facilitate key fob, parking, locker, security audits, if necessary Ensures owner’s requests for in-suite renovations are directed to strata council and relay strata council’s response to owner. Provide interpretation of strata corporation bylaws and when necessary register Form I – Bylaw Amendments. Provide warranty updates if necessary And so much more

Strata Management The Strata Council can delegate many of the duties to a Strata Management company. The Strata Management company works for the Strata Corporation but takes direction from the Strata Council.

Strata Management Tasks that cannot be delegated using the standard bylaws: Bylaw contraventions and fines Denying access to amenities Spending funds without a Strata Council resolution

Strata Management Tasks that cannot be delegated regardless of bylaw: Be a proxy holder Hold hardship hearings in regards to rentals Hold hearings in regards to bylaw contraventions

Onsite Functions Onsite Building Functions a.Providing access to trades b.Posting notices c.Monitoring the building and residence d.Security

Powers & Duties of the Strata Corporation Typical Scenario Noise complaint from an owner. a.Strata Manager receives correspondence (delegated) b.Strata Council directs a violation letter be sent to the alleged (duty) c.Strata Manager send letter. (delegated) d.Strata Manager receives response requesting hearing. (delegated) e.Council holds hearing and meets alleged. (duty) f.Council directs $25 fine be issued. (duty) g.Strata Manager issues violation fine. (delegated)

Powers & Duties of the Strata Corporation Streamlining operation tips: Read the bylaws – 1 st annual council meeting Authorize the Strata Manager a maximum limit on general spending. Example $2000 Committees – Harness passions Point person on Council Lock boxes for small Strata Corporations

Strata Corporation and the Strata Property Act Important considerations to keep in mind: 1.Take the role seriously; 2.Avoid pursuing your own agenda or risk significant consequences; 3.Know when it is time to step down; and 4.Know when to seek outside help when things go wrong and let someone else be the condo cops!

POWERS AND DUTIES OF A STRATA CORPORATION & THE ROLE OF THE STRATA COUNCIL Questions?

POWERS AND DUTIES OF A STRATA CORPORATION & THE ROLE OF THE STRATA COUNCIL Presented by: Sean Ingraham - FirstService Residential Jamie Bleay - Access Law Group