- How can repair work be warrantied? For what period of time and at what cost?
- See Repair Warranty Insurance on Building Envelope Renovations
- What are the responsibilities of property managers during major repair projects?
- The duties of a property manager are set out in the contract between the strata corporation and the property manager — but many contracts do not contemplate a major repair. Some property management contracts call for an additional percentage fee to the property manager in the event of a major repair.
- How does someone ascertain the cause/source of the problem and the extent of the damage?
- Investigation follows a series of steps. It will start with a visual inspection, a review of the maintenance history and owners’ reported problems. Non-destructive testing will be done, typically using moisture meters. Depending on what is found, some amount of destructive testing will be done, which involves removing areas of the cladding to see what is happening underneath.
- Who can perform building envelope renovation work?
- See Selecting a Licensed Building Envelope Renovator
- What is the best way to communicate with owners throughout the major repair?
- The best way is to have multiple venues for communication. The plan should have opportunities for two-way communication as well as newsletters and announcements. For example, they may include:
- information meetings - information exchange, question and answer
- newsletters sent at regular intervals
- consultants available for direct communication with owners at general meetings
- good minutes adequately summarizing information exchanges and decisions following general meetings
- What are the legal obligations of the owners to undertake repairs? Can they vote against taking action, or the best course of action?
- The strata corporation - the owners - is obligated by the Strata Property Act to …repair and maintain the common property and facilities... The building envelope is common property, and damage to a strata unit that results from failure of the building envelope is also the responsibility of the strata corporation. If the strata corporation votes against taking action, or reasonable action, a strata owner can apply to the courts for alternate stewardship of the strata.
- What are the strata council’s obligations to undertake repairs?
- The strata council can authorize repairs in emergency situations, or if not an emergency, any repair that does not cost more than $500. They are obligated to act in good faith which means performing their duties in accordance with the Strata Property Act. A strata council should take care in explaining the duties of the strata corporation to the owners, and assisting the owners in making decisions that will not bring harm to the assets of the strata corporation or place the strata corporation in legal jeopardy.
Strata Property Act - Responsibilities of Strata Councils - What must be disclosed to potential purchasers in regard to a building with problems? What are the ramifications of vague or inaccurate disclosures? Who is responsible if the problems legitimately turn out to be worse than first expected?
- The owner must disclose what they know about the problems with the building. The wise course of action is to give the buyer all the minutes and other communications the owner has received from the strata corporation with respect to any problems. Most contracts of purchase and sale have a condition that all minutes for at least the last 12 months will be provided to the buyer. Additionally, the prospective buyer will usually receive a property disclosure statement that is completed by the owner.
If the problems turn out to be more extensive than first expected, as long as the owner discloses all they know up to the completion date of the sale, the owner has fulfilled their obligations to disclose.
- Can the strata corporation use the Contingency Reserve to fund repairs? What options are available to fund the repairs?
- According to the Strata Property Act, monies in the Contingency Reserve Fund can be used for emergency repairs without approval from the owners. Beyond emergencies, owners must give their approval at a general meeting to use these funds.
The strata corporation has two options for raising money:
- the strata corporation can borrow money and collect additional amounts from owners each month to repay the loan
- special assessments can be levied against each strata unit
Either course of action requires approval by the owners at a general meeting of the strata corporation.
- What happens if not all owners are able or willing to contribute their share of the repair costs?
- Once the strata corporation has approved a resolution to levy special assessments, the Strata Property Act provides remedies for those who do not pay on time. Ultimately, the strata corporation can place a lien against the strata lot requiring it to be sold and monies owing to the strata corporation are collected from the sale proceeds.
For more detailed information see:
- Highlights of the Licensing and Warranty Insurance Requirements for Building Envelope Renovations
- Selecting a Building Envelope Renovator
- Public Registry of Licensed Building Envelope Renovator
- Four-Step Approach to Managing a Major Repair
- Building Envelope Renovation Costs and Timelines
- Strata Property Act: Responsibilities of Strata Councils
