Strata Management (22:VII)

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This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 1, 2024.
LSLAP Manual
LSLAP Manual
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Advice Program Manual.
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LSLAP Manual
Introduction
Chapters
22. Strata Law
 · I. Introduction

 · II. Governing Legislation
 · III. Strata Concept
 · IV. Strata Plan
 · V. Common Property & Assets
 · VI. Governance
 · VII. Management
 · VIII. Finances
 · IX. Collections
 · X. Bylaws & Rules
 · XI. Rentals & Accommodations
 · XII. Privacy
 · XIII. Insurance
 · XIV. Repair & Maintenance
 · XV. Dispute Resolution

 · XVI. Recourse to the Courts
v • d • e



A. Introduction to Strata Management

The most common type of management of a strata corporation in British Columbia, and the primary focus of this section, is a professional, third-party strata manager who is licensed by BC Financial Services Authority (BCFSA) and bound by the provisions of the Real Estate Services Act, SBC 2004, c 42 [RESA] and the Real Estate Services Rules, BC Reg 209/2021 [RES Rules]. This manager is contractually engaged by a strata corporation to provide “strata management services” as defined in section 1 of RESA.

Less commonly, in other cases, strata corporations can choose to be self-managed with no licensing requirements. Section 2.17 of the Real Estate Services Regulation, B.C. Reg. 506/2004 [RES Regulation] permits an unlicensed individual to provide strata management services to a maximum of two strata corporations to which the person is an owner.

1. Definition of Strata Management

Neither the SPA nor the SPR provide definitions for the term “strata management”, but there are references to the term in each. For example, section 37 of the SPA and section 4.3 of the SPR both refer to the strata management as “providing the strata management services”.

B. The Contractual Relationship

1. Power and Capacity of a Strata Corporation to Contract

Section 2(2) of the SPA states that a strata corporation has the power and capacity of a natural person of full capacity. This includes the ability to enter into contracts in respect of its powers and duties under the SPA, the SPR, and the bylaws. Therefore, the strata corporation is permitted to enter into contracts for the provision of strata management services.

2. Contract Decisions

The SPA and the courts (Enefer v The Owners, Strata Plan LMS 1564, 2005 BCSC 1866 (Chambers)) give the strata council permission to make decisions regarding contracting parties, including with which parties the strata corporation will contract.

If funds being spent by a strata corporation occur more frequently than once a year, the SPA requires that the expenditure is approved in a budget before funds are spent. Only after the expenditure is approved and the budget that includes the expenditure is approved by the strata low owners, can the strata council enter into a contract with a strata manager of its choice.

3. Termination of Strata Management Contract

Section 39.1 of the SPA permits a strata management contract to be terminated by a strata corporation on two months’ notice if the cancellation passes a ¾ vote at an annual or special general meeting, regardless of any termination provisions in the strata management contract. The other party can terminate on two months’ notice without prior approval.

Section 39.2 clarifies that the only time a ¾ vote is not needed by the strata corporation to cancel a contract is when the contract could be terminated according to its terms if they are not onerous.

Within four weeks of the termination of a contract, section 37 confirms that the person(s) providing strata management must return the strata corporation’s records, subject to a $1,000 penalty if they do fail to do so per section 4.3 of the SPR.

C. Role of the Strata Manager

1. Exercise of Delegated Power and Duties

A strata manager exercises delegated powers and duties of a strata corporation and can often act as chair of general meetings and facilitate part of the strata council’s business, although the strata manager is under the instruction of the strata council.

2. Principal/Agency Relationship

Unless specifically stated otherwise, a strata manager acts as an agent of the strata corporation, authorized to act on the strata corporation’s behalf when dealing with other parties, issuing forms and records, and entering into contracts.

The common law has developed duties that an agent (strata manager) owes to its principal (strata corporation), referred to as fiduciary duties. Sections 56 and 58 of the RES Rules give examples of those fiduciary duties in the disclosure of renumeration and disclosure of the nature and extent of benefits in relation to rental property management services and strata management services.

Further, section 30 of the RES Rules set our requirements for a “brokerage” and its “related licensees”, in this case the strata manager, when providing services to a client. Sections 33 and 34 add additional requirements to act honestly and with reasonable care and skill when providing real estate services, respectively.

3. Strata Management Correspondence

The strata manager will receive and send correspondence on behalf of the strata corporation or strata council. Such correspondence will form part of the records of the strata corporation, unlike communication amongst strata council members, as held by the CRT in Hamilton v The Owners, Strata Plan NWS 1018, 2017 BCCRT 141.


v • d • e
 
Introduction
 
Chapters 1-7
Criminal Law  · Youth Justice  · Family Law  · Victims  · Public Complaints · Human Rights  · Workers Compensation
Chapter One:
Criminal Law
Chapter Two:
Youth Justice
Chapter Three:
Family Law
Chapter Four:
Victims
Chapter Five:
Public Complaints
Chapter Six:
Human Rights
Chapter Seven:
Workers' Compensation
I. Introduction · II. Governing Legislation, Policy & Guidelines · III. Introduction to Compensation Claims for Injured Workers · IV. LSLAP's Role at the Initial Decision Level · V. Limitation Periods and Timing of Decisions · VI. Making a Claim · VII. The Claim Acceptance Process · VIII. Worker Status · IX. Disability and Causation · X. Time Limits and Procedures · XI. Claim Benefits · XII. Appeals · XIII. Health and Safety Regulations · XIV. Assessments of Employers · XV. The WCB Fair Practices Office · Appendix A: Abbreviations · Appendix B: List of Cases · Appendix C: Referrals · Appendix D: Resources · Appendix E: Small Claims Flow Chart · Appendix F: Checklist for Interviews · Appendix G: Checklist for Appeals · Appendix H: Sample Authorization Form
 
Chapters 8-14
Employment Insurance  · Employment Law  · Creditors and Debtors  · Consumer Protection  · Auto Insurance (ICBC)  · Motor Vehicle Law  · Mental Health Law
Chapter Eight:
Employment Insurance
Chapter Nine:
Employment Law
Chapter Ten:
Creditors' Remedies and Debtors' Assistance
Chapter Eleven:
Consumer Protection
Chapter Twelve:
Auto Insurance (ICBC)
Chapter Thirteen:
Motor Vehicle Law
Chapter Fourteen:
Mental Health Law
 
Chapters 15-23
Adult Guardianship and Substitute Decision-Making · Wills and Estates  · Citizenship  · Immigration  · Landlord and Tenant Rights  · Small Claims  · Welfare Law  · Strata Law  · Referrals
Chapter Fifteen:
Adult Guardianship and Substitute Decision-Making
Chapter Sixteen:
Wills and Estate Administration
Chapter Seventeen:
Citizenship
Chapter Eighteen:
Immigration Law
Chapter Nineteen:
Landlord and Tenant Law
Chapter Twenty:
Small Claims and the CRT
I. Introduction · II. Governing Legislation and Resources · III. Do You Have a Claim? · IV. Choosing the Proper Forum · V. Starting a Claim · VI. Responding to a Claim · VII. Default Order · VIII. How a Claim Proceeds · IX. Pre-Trial Applications · X. Mediation · XI. Settlement Conferences · XII. Trial/Pre-Trial Conferences · XIII. Trial Preparation · XIV. Trials · XV. Costs and Penalties · XVI. Appeals · XVII. Enforcement of a Judgement · XVIII. LSLAP Program Information · Appendix A: Registries · Appendix B: Demand Letter · Appendix C: Notice of Claim · Appendix D: Reply to Claim · Appendix E: Glossary · Appendix F: Limitation Periods · Appendix G: Causes of Action · Appendix H: Court Fees · Appendix I: Tribunal Fees · Appendix J: Settlement Conference · Appendix K: Payment Hearing · Appendix L: Appeal
Chapter Twenty One:
Welfare Law
Chapter Twenty Two:
Strata Law
Chapter Twenty Three:
Referrals
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