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Professional Standards Manual

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5. Strata Sales

(e) Additional Issues for Buyer's Agents - View Entire Section

(VIII) Buyer has not Received or Reviewed the Documentation

Sections 36(3) and 59(1) of the Strata Property Act and section 25 of the Interpretation Act effectively give the strata corporation eight days, following a request, to deliver a Form B – and up to 15 days to provide copies of the other records referred to in the following clause. Additionally, Under the Strata Property Act, unless a request for documents is personally presented to a strata council member, the strata corporation is deemed not to have received the request for 4 days. Therefore the 8 and 15 day periods do not start until 4 days after the request was faxed, mailed or emailed to the strata corporation or strata manager. Licensees should recommend a subject removal date that allows enough time for the strata corporation or strata manager to receive and respond to a request and for buyers to review the records provided by the strata corporation. Where the listing licensee has not already obtained the documents, such that the listing licensee must now request them from the strata corporation, it may take up to 18 days for subject removal. However, a prudent listing licensee will ensure that most, if not all, of the documents referred to in the clauses below are obtained at the time of taking a listing. This may enable buyers to shorten the due diligence period if there is no change in the information contained in these documents since the time of taking the listing. Licensees should add or delete documents from the list if they have already been reviewed or if they do not apply.

Strata Documentation to be Provided Clause

Subject to the Buyer, on or before (date) * receiving and approving the following documents with respect to information that reasonably may adversely affect the use or value of the strata lot, including any bylaw, item of repair or maintenance, special levy, judgment or other liability, whether actual or potential:

A Form ‘‘B’’ Information Certificate from the strata corporation, attaching the strata corporation’s rules, current budget, the developer’s Rental Disclosure Statement (if any), and the most recent depreciation report obtained by the strata corporation (if any);

If relevant, a Form ‘‘B’’ Information Certificate from the section, attaching the section’s rules, current budget, the developer’s Rental Disclosure Statement (if any), and the most recent depreciation report obtained by the strata corporation (if any);

a copy of the registered strata plan, any amendments to the strata plan, and any resolutions dealing with changes to common property;

the current bylaws and financial statements of the strata corporation, and any section to which the strata corporation lot belongs;

the minutes of any meeting held between the period from (date) to (date) ** by the strata council, and by the members in annual or special general meetings, and by the members or the executive of any section to which the strata lot belongs; and

the current insurance cover note explaining the strata corporation’s insurance coverage and deductibles.

[Include any other information, document, record or report the Buyer needs before being committed to buy.]

Immediately upon acceptance of this offer or counter-offer, the Seller will authorize the (Seller’s/Buyer’s) agent, to request***, at the (Seller’s/Buyer’s)† expense, complete copies of the documents listed above from the strata corporation or other source and to immediately, upon receipt, deliver the documents to the Buyer (or the Buyer’s agent).

This condition is for the sole benefit of the Buyer.

*When an owner asks a strata corporation for one of the strata records listed here, in most cases section 36(3) of the Strata Property Act, when read together with section 25 of the Interpretation Act, and section 63(2) of the Strata Property Act, which deems that the request for documents is not received by a strata corporation until 4 days after they are received,   permits the strata corporation up to 19 days to deliver the relevant records to the owner. If the listing licensee already has all of the records listed above, choose a reasonably short subject removal date. If the records are not available, allow up to 22 days from the date the offer is accepted. The 22 days represent four days to allow the strata corporation to receive the request, 15 days for the statutory delivery period plus three days for the buyer to review the documents.

**The Council recommends two years, but cautions licensees that this is just the beginning of the investigation. Any indication of issues regarding the finances or physical condition of the strata corporation or building may necessitate the further investigation of minutes beyond the two-year requirement.

***Use an authorization form such as the “Authorization to Agent to Obtain/Deliver Documentation” for this purpose.

† The wording of this clause allows for the parties to negotiate who will pay for the cost of obtaining these documents.