Strata council dispute? Here are the rights and obligations of this legal BC entity.
If you live in a condo or townhouse and, particularly, if you are a member of your complex’s strata council, you should understand the role and responsibilities of your strata council. In British Columbia, a strata council manages the operations of a condo or townhouse complex. The council is entrusted with ensuring the strata’s financial health, maintaining the common property, and enforcing the strata’s bylaws.
However, with this authority comes a significant set of rights and obligations that must be fulfilled responsibly.
Rights and responsibilities of a Strata Council
- Management Authority: The strata council has the right to manage and control the day-to-day affairs of the strata corporation. It can make decisions regarding the maintenance and repair of common areas, as well as overseeing the administration of the strata.
- Financial Control: The council should set and collect strata fees/maintenance based on the annual budget. These fees fund both the strata’s operating expenses and its reserve fund for long-term repairs (i.e. replacing the roof) or replacements (i.e. common area tile or carpet repairs or replacement).
- Enforcement of Bylaws: The council should enforce the strata’s bylaws, including issuing fines or other penalties for bylaw violations. They must apply the rules fairly and consistently to ensure cooperation among all owners and residents.
- Decision-Making Powers: The council approves or rejects requests for alterations to common property, pet approvals, or changes to individual units.
- Contractual Authority: Strata councils can enter into contracts on behalf of the strata corporation, such as hiring contractors for maintenance, landscaping, or repairs. They are also authorized to manage the strata’s insurance policies and other business relationships.
- Legal Representation: The council represents the strata corporation in legal matters, which may include disputes with owners or third parties, or representing the strata in court proceedings.
Obligations of a Strata Council
- Fiduciary Duty: Council members must act in the best interests of the strata corporation. They have a legal obligation to manage the affairs of the strata with care, diligence, and in good faith, avoiding conflicts of interest. This fiduciary duty requires that decisions benefit the entire community, rather than individuals or specific groups of owners.
- Enforcement of Rules and Bylaws: It is the council’s responsibility to ensure that the strata’s rules and bylaws are upheld, including addressing complaints and taking appropriate action when violations occur. Failure to enforce these rules can lead to disputes and legal challenges.
- Financial Management: Strata councils must maintain accurate financial records, prepare an annual budget, and ensure the strata corporation has sufficient funds to cover both current expenses and future repairs. The council must also ensure that owners have access to financial reports, and that an audit or review is conducted as required by law.
- Maintenance of Common Property: The council is obligated to ensure the maintenance and repair of the strata’s common property, such as hallways, roofs, and landscaping. This includes ensuring that repairs are made promptly and effectively to avoid safety risks and to preserve the property’s value.
- Duty to Inform Owners: The council must keep owners informed about important strata matters, such as financial updates, upcoming meetings, and any changes in policies or bylaws. Proper notice must be given for meetings, and detailed minutes should be made available to all owners.
- Compliance with Laws: The council must ensure that the strata complies with relevant municipal laws, building codes, and health and safety regulations. Non-compliance can result in fines or legal liabilities for the strata corporation.
Legal consequences of failing to fulfill duties
Strata councils must fulfill their duties properly to avoid legal repercussions. Owners have the right to take action if they believe the council is neglecting its responsibilities. In some cases, owners may call a special meeting or file a complaint with the Civil Resolution Tribunal (CRT), which resolves strata-related disputes. In more severe situations, legal action through the courts may be necessary to hold the council accountable.
A strata council in BC holds significant responsibilities that directly impact the quality of life for all owners and residents. Understanding both the rights and obligations of the council can help prevent disputes and ensure effective governance of the strata corporation. For strata owners and council members alike, seeking legal advice when in doubt can help avoid costly mistakes.
If you need assistance navigating the duties of a strata council or resolving any real estate related disputes, our team is here to help.
