Understanding Strata Management Services

ARE THERE STANDARD STRATA MANAGEMENT SERVICES?

In BC, people who provide strata management services for a fee are regulated by the BC Financial Services Authority. There is no single and complete description of strata management services. This can result in conflict about the expectations of what services a strata manager should provide. In an ideal world, the services provided by a strata manager are clearly stated in a contract, but that is not always the situation.

ARE STRATA MANAGEMENT SERVICES DEFINED IN THE STRATA PROPERTY ACT?

There is no definition of the strata management services in either the Strata Property Act or the Strata Property Regulation. However, strata management services are contemplated and there are references to “contracts for the provision of strata management services” (section 24 and 39 of the Act) and to a “person providing strata management services” (section 37 of the Act and 4.3 of the Regulation). There are also references to a person performing the role of a “Strata Manager” (Forms B, D, F, G, and H).

There is no specific reference to a responsibility of a strata manager in the Strata Property Act and the reference to contracts for the provision of strata management services implies that these services can be delegated by the Strata Corporation to a non-owner. However, the Strata Property Act and Regulation do not provide any explicit limit of what can be delegated.

The “Schedule of Standard Bylaws” included with the Act are not legislation and are not binding on any Strata. However, bylaw 20 does permit that the Council to delegate some or all its powers to people who are not members of the Council. Implied in this, is that the Council could delegate all of its responsibilities to a person providing strata management services.

ARE STRATA MANAGEMENT SERVICES DEFINED IN THE REAL ESTATE SERVICES ACT?

The Real Estate Services Act (“RESA”) defines strata management services as:

• Collecting or holding amounts due to the strata corporation under the Strata Property Act.

• Exercising delegated powers and duties of a strata corporation.

RESA lists five situations that come within the scope of exercising delegated power and duties:

• Making payments on behalf of the strata corporation.

• Negotiating and entering into contracts on behalf of the strata corporation.

• Supervising employees of the strata corporation.

• Supervising contractors hired or engaged by the strata corporation.

• Enforcing bylaws or rules.

These five situations are only examples and RESA does not restrict the “delegated powers”.

IS THE BC FINANCIAL SERVICES AUTHORITY INVOLVED IN STRATA MANAGEMENT SERVICES?

The BC Financial Services Authority (“BCFSA”) is responsible for the licensing, education and discipline of people licensed to provide strata management services for a fee.

The public-facing website maintained by BCFSA addressing strata management identifies services provided by strata managers. These services repeat the ones included in RESA and add:

• Managing paperwork of a strata.

• Managing the finances of a strata.

• Preparing for meetings and taking minutes.

IS THERE TRAINING FOR SOMEONE THAT WANTS TO PROVIDE STRATA MANAGEMENT SERVICES?

People providing strata management services for a fee must complete the Strata Management Licensing Course. The topics taught in that course can indicate what is included in property management services.

The topics include:

• The law of contract.

• Strata management contracts.

• The law of agency.

• Effective negotiations.

• Overview of the Strata Property Act and Strata Property Regulation.

• Strata Meetings and Communications.

• Strata Governance: Meetings, Rules and Effective Decision Making.

• Building Design and Construction.

• Insurance and Risk Management.

• Local Government Law.

• Accounting Fundamentals for Strata Management.

• Budgeting: The Operating Budget and Fund.

• Budgeting: The Contingency Reserve Fund and Depreciation Reports.

• Purchasing.

WHEN A STRATA HIRES SOMEONE TO PROVIDE STRATA MANAGEMENT SERVICES THE SERVICES PROVIDED MUST BE IDENTIFIED IN A CONTRACT

There are many things that can be included in the term strata management services. It is important that a Strata understands, and has clearly stated in a contract, what services it wants to be provided by another person.

It is also noteworthy that community-building, the discussion of expectations of owners, and interaction with the larger community in which the Strata is located are not included strata management services. These are the core responsibilities of a Council and it makes sense that they are in a category separate from “management services.”