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Difference between revisions of "Strata Corporation Finances (22:VIII)"
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Strata Corporation Finances (22:VIII) (view source)
Revision as of 17:53, 1 August 2023
, 17:53, 1 August 2023→1. Purpose of Operating Fund
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Each strata corporation must establish an operating fund (SPA, s 92) to be used for common expenses that occur either once a year or more often than once a year. Examples include landscaping, management fees, annual inspection fees, and office and administrative expenses. | Each strata corporation must establish an operating fund (SPA, s 92) to be used for common expenses that occur either once a year or more often than once a year. Examples include landscaping, management fees, annual inspection fees, and office and administrative expenses. | ||
'''a) Common Expenses''' | '''a) Common Expenses'''<BR> | ||
Under s 1(1) of the SPA, “common expenses” is defined as those expenses: | Under s 1(1) of the SPA, “common expenses” is defined as those expenses: | ||
# Relating to the common property and common assets of the strata corporation; or | # Relating to the common property and common assets of the strata corporation; or | ||
# Required to meet any other purpose or obligation of the strata corporation. | # Required to meet any other purpose or obligation of the strata corporation. | ||
'''b) Strata Fees''' | '''b) Strata Fees'''<BR> | ||
To create the operating fund, each owner contributes fees that are determined by reference to the budget approved at the annual general meeting. These fees are generally a strata corporation’s primary source of income. The default formula to calculate strata fees is set out in s 99: | To create the operating fund, each owner contributes fees that are determined by reference to the budget approved at the annual general meeting. These fees are generally a strata corporation’s primary source of income. The default formula to calculate strata fees is set out in s 99: | ||
