Strata Document Review: Red Flags for Buyers

We get the same call from buyers a few times a month: "I'm under contract on a Squamish condo, I have a stack of strata documents, and I have 48 hours to figure out what they mean." This guide is the cheat sheet we wish every buyer had a week before subject removal. After hundreds of council tables and thousands of document packages, the strata document review red flags that signal real trouble are predictable. Below are the 12 we look for first, organized by document type, with what each one means and what to do about it.

What documents you should have in hand

Before reading any further, confirm you have all eight of the standard strata document categories. If any are missing, that's red flag zero. Get them before you keep going.

• Form B Information Certificate (current, signed)
• Form F Certificate of Payment (dated within 30 days)
• Two years of council and AGM minutes
• Current depreciation report
• Last two years of audited or reviewed financial statements
• Registered bylaws and rules
• Strata plan
• Current insurance summary

Sellers and listing agents should produce all of this within a few days through eStrataHub or directly from the strata. Slow document production is itself a red flag. See our Form F guide for what you should be getting.

Red flags in the minutes

Council and AGM minutes tell you how the building is governed. We read them looking for patterns, not single events.

1. Multiple special levies in three years. A levy is normal; three is a pattern. The pattern says the strata is funding reactively, which means more is coming.
2. Owner-vs-council conflict. Repeated heated exchanges, named threats of legal action, or formal hearings under SPA s. 135 for bylaw enforcement signal governance instability.
3. Council resignations mid-term. One resignation is life; three in 18 months is a culture problem.
4. Deferred decisions. A motion that keeps getting tabled (envelope inspection, depreciation report procurement, EV charging) usually means council can't agree, and the deferral is costing money.

Red flags in the financials

Two years of statements gives you trend, not just snapshot. We look at five things:

5. Accounts receivable balance. This is unpaid strata fees. A small balance is normal: every strata has slow payers. A growing balance, or one that's a meaningful share of annual fee revenue, says collection isn't being enforced and the building is short cash.
6. Operating account vs CRF. Healthy stratas keep operating roughly equal to one to two months of expenses, with the rest in the CRF. A bloated operating account often means the strata isn't transferring to CRF as required.
7. Unexplained one-time expenses. Large legal fees, consultant fees, or "repairs and maintenance" line items that jumped sharply. Trace each one back to the minutes.
8. CRF balance trend. Is it growing year over year, or being drawn down? Compare to the depreciation report's recommended balance.

Red flags in the depreciation report

We have a full buyer's guide to reading depreciation reports, but the headline red flags are:

9. Major projects in years 1 to 5 with low CRF. Special levies are nearly certain. Envelope work on an older wood-frame building can run to substantial five-figure costs per door.
10. Phrases like "deferred maintenance" or "scope not assessed." Consultants are careful with language. These phrases usually mean real problems were observed and council hasn't acted.
11. A report older than 5 years. As of 2026, this is non-compliance with SPA s. 94. The strata is overdue for a refresh.

Red flags in the bylaws

Bylaws shape what life in the building will actually look like for you. Five specific things to watch:

12. Rental restrictions. As of 2024, BC removed strata authority to restrict long-term rentals to family members. But age restrictions (55+) remain valid under SPA s. 141 and short-term rental bylaws are still enforceable. Make sure the registered bylaws match what the seller has told you.
13. Pet restrictions that don't match what was advertised.
14. Move-in fees, parking fees, locker fees, amenity fees. Add them up. They're real ongoing costs.
15. Bylaws never updated since the developer wrote them. A strata that's never amended its bylaws is either incredibly cohesive or hasn't been paying attention. Usually the latter.

Always read the LTSA-filed version, not what the seller or agent describes verbally. Bylaws registered at the Land Title Office are the only ones that count.

Red flags in the insurance summary

The Form B includes a summary. Look for:

• Deductibles. Elevated water deductibles are common since the 2020 insurance crisis; very high deductibles often signal claim history.
• Premium history. A premium that has jumped sharply over a short period signals risk, not just a hard market.
• Coverage gaps. Earthquake, sewer backup, and flood are common exclusions in BC. Confirm what's covered.

Red flags in CRT activity

The Civil Resolution Tribunal handles most BC strata disputes. Search the CRT decisions database for the strata's name or plan number. Active or recent files can signal:

• Bylaw enforcement disputes that may be costly
• Special levy challenges that could unwind funding
• Council governance challenges (improper meetings, quorum issues)

Civil Resolution Tribunal decisions on document disclosure show the kind of friction that ends up at CRT, and buyers are sometimes the catalyst for these cases.

What to do when you find a red flag

A red flag doesn't kill a deal. It changes the price, the timing, or both. The pattern we recommend:

1. List what you found in writing to the seller's agent
2. Quantify the risk. Estimate the special levy or fee exposure
3. Negotiate a price reduction, an extended subject period, or a written holdback
4. Decide. If the answer isn't satisfactory, walk

The buildings that look bad on paper sometimes are fine after a council change or a completed project. The buildings that hide problems behind incomplete document packages almost never are. Trust the documents, not the agent's reassurance.

If you're staring at a strata document package and want a second opinion before subject removal, our team does buyer document reviews across the Sea to Sky. We can flag the top three risks in a one-hour read and tell you whether the price reflects them.