Obligations for Record-Keeping

WHY DOES A STRATA HAVE TO MAKE AND KEEP RECORDS?

One of a Stratas most important responsibilities is to create and maintain records. These records allow owners to understand how the Strata is organized, how money is spent, and what decisions are made. Proper record-keeping allows for transparency, accountability, and the smooth operation of the Strata over time.

Record-keeping is not optional. The Strata must maintain a continuous and reliable record over time.

WHAT RECORDS DOES A STRATA NEED TO CREATE?

A Strata must create and maintain up-to-date records about its governance and finances. These records are necessary for communication within the Strata and financial transparency. The records a Strata must create includes:

• A list of council members.

• Contact information for council members so they can be reached at short notice,

• A list of owners that includes:

  • Strata lot addresses.

  • Mailing addresses.

  • Strata lot numbers.

  • Parking stall and storage locker numbers.

  • Unit entitlements.

• Records of incoming and outgoing payments, including the reason for each.

WHAT RECORDS DOES A STRATA NEED TO RETAIN?

In addition to the records that a Strata must create, it must also retain records that relate to it but are created by other people.

Certain records must be kept until they are no longer relevant. For example, reports relating to major repairs can be disposed of when the object that was repaired is replaced entirely or removed.

Most records do not need to kept forever and the length of time that a Strata must keep a record depends on the type of record.

WHAT RECORDS DOES A STRATA NEED TO ONLY KEEP IN THE CURRENT VERSION?

The Strata must keep current copies of key governance documents but do not need to keep records that are no longer valid. These include:

• The Strata Property Act and Regulations, which available from the BC Laws Website.

• The Strata’s bylaws.

• The Strata’s rules.

WHAT RECORDS DOES A STRATA NEED TO KEEP PERMANENTLY?

These are documents that do not 'expire' and could be necessary and relevant at any time. They include:

• The strata plan and any amendments.

• Resolutions that deal with changes to common property.

• Legal decisions by an arbitrator, judge or the Civil Resolution Tribunal.

• Records and contact details concerning the building of the Strata.

• All depreciation reports.

• Important electrical reports.

WHAT RECORDS DOES A STRATA NEED TO KEEP FOR AT LEAST SIX YEARS?

Strata records that deal with money and expenses generally need to be kept for at least six years. The specific records include:

• Waivers of general meetings.

• Budgets and financial statements.

• Income tax returns.

• Banking records.

• Insurance policies for six years after they end (generally seven years from when they are in force).

• Contracts for six years after they terminate.

WHAT RECORDS DOES A STRATA NEED TO KEEP FOR AT LEAST TWO YEARS?

A Strata must keep copies of all correspondence sent by or to the Strata for at least two years. We discuss, in this article, what is considered this form of correspondence.

ROBUST AND RESILIENT STRATA CORPORATIONS ARE BUILT ON RELIABLE RECORD KEEPING

Recordkeeping is a key and critical responsibility for the Strata. It is particularly important because the members of the Council can change, and it is inadequate to rely on the personal memories of member or Council.

A lack of accurate and accessible records can lead to confusion, serious governance and financial problems, and a loss of confidence in the ability and trustworthiness of the Strata. In this article we discuss an Owners right to access a Strata's records.

With well-kept records, owners can understand, participate in, and have confidence in the management of their property and community.