Frequently Asked Questions about the Form B: Information Certificate
When buying or selling a strata property, navigating through various documents is essential to ensure a smooth transaction. One critical document in this process is the "Form B: Information Certificate." This certificate provides detailed insights into the strata lot and the strata corporation, offering valuable information for both buyers and sellers. Below, we address some frequently asked questions about the Form B to help you understand its significance and application.
What is a Form B: Information Certificate?
The Form B: Information Certificate is a standardized document that discloses pertinent details about a specific strata lot and the overarching strata corporation. It encompasses information such as monthly strata fees, any outstanding amounts owed by the owner, agreements related to alterations, approved special levies, and more. As of April 1, 2023, it also includes a summary of the strata corporation's insurance coverage.
Who can request a Form B, and how is it obtained?
An owner, purchaser, or an individual authorized by either party can request a Form B. Upon such a request, the strata corporation is obligated to provide the completed certificate within seven days. It's important to note that the maximum fee a strata corporation can charge for a Form B is $35, plus up to 25 cents per page for copying. If the certificate is needed in less than seven days, some corporations or property managers may impose a rush fee.
Why is the Form B important in a strata transaction?
For buyers, the Form B offers a comprehensive overview of the strata lot's financial and legal standing, ensuring transparency before finalizing a purchase. Sellers benefit by providing this document to potential buyers, facilitating informed decisions and potentially expediting the sale process.
What specific information is disclosed in the Form B?
The Form B provides current details as of its issuance date, including:
- Monthly strata fees payable by the owner.
- Any amounts owed by the owner to the strata corporation.
- Agreements where the owner assumes responsibility for expenses related to alterations.
- Amounts due for approved special levies and their payment deadlines.
- Expected overages in the strata corporation's expenses for the current fiscal year beyond the budgeted amounts.
- The balance in the contingency reserve fund, minus any approved expenditures not yet deducted.
- Unregistered amendments to the bylaws.
- Resolutions passed requiring filing in the Land Title Office but not yet filed.
- Any wind-up (termination) resolutions that have been passed.
- Notices for resolutions pending a vote that require significant approval thresholds or pertain to bylaw amendments.
- Ongoing legal proceedings involving the strata corporation and any judgments or orders against it.
- Outstanding notices or work orders related to the strata lot, common property, or assets.
- Details about parking stalls and storage lockers assigned to the strata lot.
- A summary of the strata corporation's insurance coverage.
Are there additional documents attached to the Form B?
Yes, the Form B must include:
- The strata corporation's rules, if any.
- The current budget of the strata corporation.
- The most recent depreciation report, if available.
Depending on the circumstances, other documents may also be attached, such as agreements where the owner has taken on expenses for alterations, pending resolutions, details of legal proceedings, and outstanding work orders.
What should be considered when preparing or reviewing a Form B?
It's crucial to ensure that the most current version of the Form B is used, as it undergoes regular updates. The information provided should be accurate and reflect the current status as of the date on the form. Both the strata council and, if applicable, the strata property manager play roles in compiling and verifying the information disclosed. Given the binding nature of the Form B on both the strata corporation and the requester, accuracy and completeness are paramount.
Final Thoughts.
Understanding the Form B: Information Certificate is vital for anyone involved in the purchase or sale of a strata property. It ensures transparency and provides essential insights into the financial and legal aspects of the strata lot and corporation, thereby facilitating informed decision-making.