What to Look for in Strata Documents Before You Make an Offer

Strata documents can look overwhelming, but they tell you exactly what you are buying into, the building’s finances, its rules, and its future maintenance needs.

Here’s what to focus on before you remove subjects, and the red flags that should slow you down.

1) Form B (Information Certificate)

Form B is the fastest way to get the big picture. It can include details on strata fees, insurance notes, bylaws, unit entitlement, special levies, and legal matters.

• Check: fee amount, what’s included, and insurance deductible notes.
• Red flag: unclear insurance notes or missing sections.

2) Strata minutes (12 to 24 months)

Minutes reveal the real story: repeated maintenance issues, upcoming projects, contractor quotes, and whether owners are aligned or stuck.

• Scan for: roof, building envelope, plumbing, windows, parkade, elevator, and water ingress.
• Red flag: the same issue appearing repeatedly with no funding plan.

3) Financial statements and the CRF

You want to know if the strata is budgeting realistically and saving for the repairs every building eventually needs.

• Check: Contingency Reserve Fund balance, operating surplus/deficit, and fee increase pattern.
• Red flag: low CRF combined with major projects being discussed.

4) Depreciation report (and follow-through)

The key is not only whether a depreciation report exists, but whether the strata is actually following it.

• Check: the next 3 to 5 year projects and cost ranges.
• Red flag: “we’ll deal with it later” with no budgeting plan.

5) Bylaws and rules (the lifestyle test)

Confirm pets, rentals, age restrictions, smoking, parking, storage, and renovation rules.

Quick red-flag checklist

• Recurring water ingress or envelope concerns
• Major repairs discussed without clear funding
• High insurance deductibles or frequent claims
• Low CRF with aging components
• Frequent owner disputes or management turnover

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