Dear Tony: We bought a condo in Richmond last fall. We have been disputing how the strata fees and a special levy have been calculated as there is a fairness issue.
In our townhouse complex created in 2008, everything is based on an equal share. Everyone pays 1/78th of all common costs. Some units are almost twice the size of others, and have families, while smaller units are occupied by single owners. In essence, the smaller units are subsidizing the larger units.
At the time of purchase, we noticed that only the monthly strata fee was disclosed on the Form B. Buyers don’t see the formula that is applied by the strata corporation to the calculation of strata fees or special levies for common costs. How is this fair?
J.B.K. Richmond
Every strata corporation has a filed schedule of unit entitlement, or amendments, in the Land Title Registry. I encourage all buyers to access a copy of the schedule before they purchase, to understand what their share of the common costs and liabilities will be.
A common schedule for bare land strata corporations generally applies for equal share, as the strata lot is the land, not the homes, which are not shown on the strata plan. Depending on the time period when the strata plan was filed, you may also find townhouse communities and apartment style buildings were identified with the same equal payment schedules or by the number of bedrooms per unit.
While most townhouse and apartment style strata corporations are based on the measured size of each unit, the owner-developer still retains the options to file a simpler formula. This formula is filed at the same time the strata plan is created.
Strata corporations frequently adopt the schedule of unit entitlement the owner-developer proposed in the disclosure statement. It is critical to double check the land title documents as they will prevail. An owner-developer is required to include an estimated schedule of unit entitlement with the disclosure statement, but an accurate schedule is not possible until a surveyor completes the calculations once the units near completion. Always refer to the schedules filed in Land Titles. The schedule applies to all common expenses and liabilities.
Strata fees, special levies, a share of an insurance deductible, law suits or settlements, are all based on unit entitlement formulas. If your strata corporation discovers they are using the incorrect formula, they are obliged to immediately correct the error as they must comply with the Strata Property Act. Amending the schedule of unit entitlement requires a unanimous vote of the corporation as it changes the liabilities for all owners.
Tony Giovenut is executive director of the Condominium Home Owners Association.
