Q: I own an 8 unit (2 four-plexes) building in Salmon Arm. The units are already strata titled and we would like to sell them individually. Is there a legal requirement to set up a Strata council, establish monthly strata fees and a CRF prior to listing the units? If so would this be done by a lawyer? Any advice you could give me on this would be greatly appreciated.
A : I like Salmon Arm.
I sold the building on 302 – 420 4th Ave and still own a very large suite there.
I assume you have 8 titles?
IN BC, WHEN YOU SELL MORE THAN 5 UNITS … EVEN IF YOU OWN THEM … YOU ARE CONSIDERED A DEVELOPER AND MUST HAVE AN OFFERING MEMORANDUM.
The memorandum must show a budget (including strata fees) and you must also put – I believe 5% of the budget – into the strata fee pot right on day one.
That would definitely have to be done by a QUALIFIED lawyer. Go to the FiCom website for details.
The council must be set up within 90 days after you have sold them. (You can’t have a council without members.)