Dear Tony: We started looking at a condo in Victoria a month ago, gathering the minutes, depreciation report, and bylaws from the owner. Our agent never advised us to request a Form B Information Certificate. After the purchase, we discovered a lengthy list of court and tribunal decisions against the corporation, indicating we bought into a troubled community. Is there any way we could have avoided this? — Kelly S.
Understanding the Form B Information Certificate
Dear Kelly: A Form B Information is a recommended document for review before a buyer considers a purchase and often a subject in the purchase agreement. The clause typically reads: “Subject to satisfactory review of the Form B Information Certificate.” These forms can be requested at any time and are valid only for the time they are issued, as conditions may change within days.
What the Form B Covers
The Form B provides an overview of the strata corporation status, including monthly fees, alteration agreements, special levy obligations, projected deficits, contingency balance, bylaw amendments not yet filed, winding-up resolutions, pending resolutions, upcoming meetings, court or tribunal proceedings involving the strata, judgments or orders against the corporation, assigned parking stalls, storage lockers, rules, current budget, depreciation report, and electrical planning reports (coming into effect this year for CRD, Metro Vancouver, and Fraser Valley).
Additional Requests
Buyers may also request engineering or environmental reports, building envelope condition assessments, and a copy of the strata insurance policy.
Advice for Buyers
I always advise buyers to request a copy of the report before removing subjects. Read the materials closely and consult your conveyance lawyer and agent if you have any concerns. The standard fee, if requested more than one week before the delivery deadline, is $35 plus 25 cents per page per copy. Digital copies are available through most management companies.
Preparing the Form B is time-consuming and carries liability for the strata corporation and managers if inaccuracies cause buyer losses. In your case, the rush fee of $500 likely did not cover the time needed to meet the deadline. The disregard for your being informed is concerning, and you may have a valid claim. Contact the BCFSA, the regulator for trading services and strata management in B.C., to file a complaint.
Tony Gioventu is executive director of the Condominium Home Owners Association. Email tony@choa.bc.ca.
