Papers caught in the middle of a legislation defect
Tony Gioventu
Province
Dear Condo Smarts:
I recently listed my condo for sale and last week had an offer to purchase.
It was subject to the review of a Form B information certificate and the engineering report for work that was completed in 2004. The strata council did not provide the Form B within the 10-day period and, as a result, my sale collapsed.
It turns out that our management company was terminated on Sept. 15, and have not yet returned our records or documents, thus preventing the new manager from completing the forms.
Who’s going to be responsible for the loss of our sale?
Isn’t there some way to force the return of the records?
— Gavin C., Port Moody
Dear Gavin:
You have unfortunately been caught by a defect in the legislation.
Under the Strata Property Act, the strata management contract usually terminates 60 days after the strata makes the decision to cancel the contract. Then, the manager has another four weeks to hand over the records to the new manager.
In that-four week period, new managers or the strata councils may not have sufficient records to complete many of the forms required for sales or routine strata business, so this leaves people vulnerable.
The other quirk is that while the legislation requires the records must be returned in the four weeks, the legislation says nothing about when stratatrust funds are to be transferred from old to new manager. The legislation is silent on this issue.
CHOA is working with the Real Estate Council and Ministry of Finance to find solutions, but until that time, here are a few remedies for strata corporations.
n Each strata can negotiate specific time periods within their contracts for the return of the records and documents, provisions of forms, and the return of financial documents and trust funds.
n What would happen if the manager’s building was destroyed along with all of your records? An on-site set of records for the strata may also be a solution.
n Many strata corporations also create a Form B every one to three months so they have quick access to materials for real-estate transactions, avoiding the last-minute rush.
n If all else fails, there’s nothing better than simply informing the strata owners of the transition and delays.
Whatever you do, don’t guess. As a strata corporation, you will be responsible and liable for any information on the forms, whether completed by you or your manager.
Tony Gioventu is the executive director of the Condominium Home Owners Association (CHOA). Contact CHOA at 604-584-2462 or toll-free 1-877-353-2462, fax 604-515-9643 or e-mail [email protected]
© The Vancouver Province 2006
