Running a Small Strata | First Year
First Year Checklist for a New Small Strata
In the first year of a new BC strata, the owner developer holds the first AGM, hands over the documents, the money and the keys, and then the owners run the strata. Each of those steps has a date in the Strata Property Act, and missing one can leave the strata without insurance or without records. This checklist puts every step in date order for a duplex to sixplex, then covers the handover list, the first budget, insurance, money, records, Form B, warranty dates, bylaws and tax.
The short answer
- 01The owner developer must hold the first annual general meeting (AGM) in the 6 weeks that start on the earlier of 50% plus one of the lots being sold, or 9 months after the first sale (Strata Property Act s.16).
- 02At that meeting the developer hands over the building plans, contracts, warranties, manuals, the contractor list and the strata's records, and owners pass the first annual budget by majority vote (s.20, s.21).
- 03The first budget must put at least 10% of the operating fund contribution into the contingency reserve fund (Strata Property Regulation s.3.4).
- 04The developer's insurance only has to run 4 weeks past the first AGM (s.15). Have the strata's own policy in place before that date.
- 05Within 1 week of the AGM the developer must hand council the strata's money and keys (s.22). Council then runs the strata: records, Form B within 1 week of any request, and a T2 tax return every year.
- 06Write down your warranty dates. Under the 2-5-10 home warranty, cover for common property starts with the first unit in each building (Homeowner Protection Act Regulation, Schedule 3 s.5).
The checklist, in date order
"SB" is a Standard Bylaw. "Act" is the Strata Property Act and "Reg" the Strata Property Regulation. The first AGM is the anchor for most dates, so write its date down as soon as it is set.
| When | What to do or check | Source |
|---|---|---|
| Before you sign to buy | Read the interim budget. The developer must give it to you before you sign, and its contribution to the reserve fund must be at least 10%. | Act s.13; Reg s.3.01 |
| At your purchase | Hold back 7% of the price for up to 55 days if you buy from the owner developer. Liens against your lot must be filed within 45 days of the sale. | Act s.88; Reg s.5.2 |
| Within 2 weeks of becoming an owner | Give the strata your name, strata lot number and a mailing address outside the strata plan, if any. | SB 4(1) |
| Up to the end of the month of the first sale | The owner developer pays all the strata's expenses. | Act s.7 |
| From the earlier of 50% plus one sold, or 9 months after the first sale, for 6 weeks | First AGM. Notice of at least 2 weeks, with the first budget and a financial statement. If the developer is late, an owner can call the meeting and the developer pays a penalty. | Act s.16, s.17, s.45; Reg s.3.1(2) |
| At the first AGM | Elect a council for one year (every owner, if fewer than 4 lots or owners). Receive the handover documents. Pass the first annual budget by majority vote, with at least 10% to the reserve fund. | Act s.20, s.21; Reg s.3.4; SB 9(2) |
| Within 1 week after the first AGM | The developer transfers control of the strata's money to council and gives council the keys and other means of access. | Act s.22 |
| Before 4 weeks after the first AGM | Strata insurance in the strata's own name, renewed or replaced: full replacement value on the buildings, major perils, $2,000,000 liability. | Act s.15, s.149; Reg s.9.1, s.9.2 |
| Within 8 weeks after the first AGM | The developer gives the strata a financial statement updated to the date the budget took effect. If interim budget costs ran over, the developer pays the difference in this window. | Act s.14(4), s.21(6) |
| First month of the new budget | Strata fees start under the first annual budget, due on the 1st of each month. The budget runs 12 months from the first day of the month after the AGM. | Act s.21(1); SB 1 |
| Year one, then ongoing | Set up the strata's records, Form B process and a list of warranty expiry dates. Report the insurance at each AGM. | Act s.35, s.59, s.154 |
| 2 years after the transfer of control | Last day the developer must keep the pre-handover financial records, which the strata may inspect free and copy or audit at its own cost. | Act s.23 |
| Within 2 months after the first fiscal year end | Second AGM, with a new budget and council election. A developer-signed management contract ends 4 weeks after this meeting unless renewed by majority vote. | Act s.24, s.40 |
| 6 months after the fiscal year end | T2 return due. A strata that qualifies as a non-profit may also need form T1044 by the same date. | CRA T2 and T4117 |
The first AGM
The owner developer must hold the first annual general meeting (AGM) in the 6 weeks that begin on the earlier of the day 50% plus one of the lots have been sold, or 9 months after the first sale (s.16(1)). In a 4-lot strata, the third sale starts that clock (our arithmetic). Notice must go out at least 2 weeks before, with the first budget and a financial statement (s.16(2), s.45).
If the developer does not hold it, an owner may hold the meeting after giving the same notice to everyone, including the developer. The developer then owes the strata $1,000 if the meeting is up to 30 days late, plus $1,000 for each further 7 days (s.17; Regulation s.3.1(2)).
At the meeting, owners elect a council for one year (s.20(1)). With fewer than 4 lots or fewer than 4 owners, every owner is on council (Standard Bylaw 9(2)). The developer, or its agent, chairs the meeting unless it will not, in which case owners elect a chair (s.19). The AGM page covers notice, quorum and meeting online.
The handover documents
At the first AGM, the developer must put these before the meeting and give the strata copies (s.20(2); Regulation s.3.2):
- all plans needed for the building permit, and any amendments filed with the permit issuer;
- any document showing that a pipe, wire, duct or similar is not where the plans show it;
- all contracts signed by or for the strata;
- any disclosure statement required by the Real Estate Development Marketing Act;
- the registered strata plan from the Land Title Office;
- the names and addresses of the contractors for the electrical, heating and plumbing systems, elevators, exterior walls, outside windows and doors, roof and foundations, plus any building envelope consultant and the project manager;
- all warranties, manuals, drawings, operating instructions and service guides for the common property and common assets;
- all records the strata must keep under section 35.
Check the list at the meeting and write down what is missing. If the developer does not hand over a document and the strata has to pay to get it, the cost is money the developer owes the strata (s.20(3)).
The strata must keep the plans, the strata plan, the disclosure statement and the contractor list permanently. Contracts and insurance policies are kept 6 years after they end. Warranties are kept until the item is replaced or the warranty ends, whichever comes first (Regulation s.4.1(7)). The developer must keep its own pre-handover financial records for 2 years, and the strata may inspect them free and copy or audit them at its own cost (s.23).
The first budget and the 10% reserve
Before the first AGM, the strata runs on the interim budget, which covers 12 months from the month after the first sale. You received it before you signed (s.13). If actual costs beat that budget, the developer pays the difference within 8 weeks after the first AGM, plus an extra amount when costs ran 10% or more over (s.14; Regulation s.3.1(1)).
The first annual budget runs 12 months from the first day of the month after the first AGM, and owners pass it by majority vote (s.21(1), (4)). At least 10% of the operating fund contribution must go to the contingency reserve fund (Regulation s.3.4). Fees are due on or before the first day of each month (Standard Bylaw 1). The budget page has a layout for a 4-unit strata, and the fee split calculator shows each owner's share.
Insurance: the 4-week gap
The developer must make sure any strata insurance policy runs at least 4 weeks after the first AGM (s.15). After that date the duty is the strata's. It must insure the common property, the buildings on the strata plan and the fixtures the developer installed, at full replacement value against major perils, and carry at least $2,000,000 of liability insurance (s.149; Regulation s.9.1, s.9.2).
Ask for the policy's end date at the first AGM. If the developer's policy ends at the 4-week mark, council has less than a month to get quotes and bind a new one. From then on the strata must review its cover every year, report on it at each AGM, and tell owners promptly of any material change, including a higher deductible (s.154). The insurance page explains the deductible.
Money and the strata's account
Within 1 week after the first AGM, the developer must transfer control of the strata's money to the new council (s.22). The strata corporation is a legal person named "The Owners, Strata Plan [number]" (s.2). Reserve fund money must be accounted for separately and kept in insured accounts at BC savings institutions or in investments the Regulation allows (s.95). Bank records and books of account must be kept for 6 years (Regulation s.4.1(3)).
A practical step, which the Act does not name: open an account in the strata's legal name, with at least two owners able to see every transaction. That meets the rules above and lets every owner check the money.
Records and Form B readiness
The strata must keep minutes, a list of council members, a list of owners with their lot numbers and mailing addresses, books of account, and the other records in s.35. Owners can ask for copies, which must be given within 2 weeks (bylaws and rules within 1 week) for at most 25 cents a page, and inspection is free (s.36; Regulation s.4.2).
The first sale after handover will need a Form B. The strata must give one within 1 week of a request, for at most $35 plus 25 cents a page (s.59; Regulation s.4.4). It shows monthly fees, money owed, levies, the reserve fund balance, unfiled bylaw changes, court and tribunal cases and an insurance summary, with the rules and current budget attached. Build the file now so the week is enough. The Form B page lists every item.
Warranty dates
A new home in BC must be covered by home warranty insurance of at least 2 years on materials and labour, 5 years on the building envelope and 10 years on structure (Homeowner Protection Act s.22). The 2-year cover has shorter windows inside it:
| What is covered | For | Source |
|---|---|---|
| Defects in materials and labour, units | First 12 months | HPA-R Sch. 3 s.1(1)(a) |
| Defects in materials and labour, common property | First 15 months | HPA-R Sch. 3 s.1(1)(b) |
| Electrical, plumbing, heating, ventilation and air conditioning systems; cladding, caulking, windows and doors that may lead to detachment or damage; defects that make the home unfit to live in | First 24 months | HPA-R Sch. 3 s.1(1)(c) |
| Building envelope | 5 years | HPA s.22(2) |
| Structure | 10 years | HPA s.22(2) |
The clocks start at different times. For each unit, cover starts on the earlier of actual occupancy or the transfer of title. For the common property, it starts on the first unit's start date in each building (Homeowner Protection Act Regulation, Schedule 3 s.5). So the common property's 15-month window can be partly used up before the last unit sells. The warranty provider must send owners a schedule of expiry dates that includes the common property (Homeowner Protection Act Regulation s.15). Put those dates in the strata's calendar.
Before the first AGM, the developer acting as council has a duty to pursue warranty claims for the strata (Strata Property Act s.6). A building built under the rental exemption has no home warranty insurance. The 2-5-10 warranty guide covers the details.
Lien holdback, bylaws, council and tax
Lien holdback. A buyer from the owner developer must hold back 7% of the gross price for up to 55 days, and liens against the lot must be filed within 45 days of the sale (s.88; Regulation s.5.2). A 2025 amendment to s.88 is passed but not in force. The builders lien page explains liens on a multiplex.
Bylaws. The Standard Bylaws apply unless the developer filed different ones with the strata plan. In an all-residential strata, no bylaw can change before the second AGM without a unanimous vote (s.127(1)). After that a 3/4 vote is enough, and the change takes effect only when Form I is filed (s.128).
Council. Council elects a president, vice president, secretary and treasurer at its first meeting after each AGM (Standard Bylaw 13). It must send owners the minutes of each council meeting within 2 weeks (Standard Bylaw 19).
Tax. The Canada Revenue Agency says every corporation must file a T2 return for every tax year, even with no tax payable, and that most residential condominium corporations qualify as non-profit organizations. A strata that had more than $10,000 of interest, dividends, rent or royalties in the year, or more than $200,000 of assets at the end of the previous year, or filed one before, must also file form T1044, due 6 months after its fiscal year ends. The taxes page has the details.
Questions owners of new small stratas have asked
Owners of new 3, 4 and 5 unit stratas sent these questions to a BC strata advice column. The right-hand column gives the rules that apply, from the Act and Regulation.
| Asked | The owner's question | The rules that apply |
|---|---|---|
| April 2024 | In our new 3-unit Vancouver strata, the largest owner wants no bank account and no budget, and to split costs 3 ways. Is that allowed? | A budget passed by majority vote at each AGM is required (s.103), with at least 10% to the reserve fund (Regulation s.6.1). Costs are split by unit entitlement unless every owner agrees another formula by unanimous vote, filed at the Land Title Office (s.99, s.100). Reserve fund money must be kept in insured accounts or allowed investments (s.95). |
| December 2025 | We are first buyers in a Vancouver 4-plex. The developer says no strata fees for the first year, and the insurance runs out in a month. How can that be? | The developer pays all expenses only up to the end of the month of the first sale (s.7). The interim budget and the first annual budget each need at least 10% for the reserve fund (Regulation s.3.01, s.3.4). Insurance must run at least 4 weeks after the first AGM (s.15), and the strata must keep it in place after that (s.149). |
| August 2025 | A Nanaimo 5-plex says it can run "casually", with no records, financial statements or insurance papers. Is that OK? | Every strata must keep the records in s.35 for the times in Regulation s.4.1, give a financial statement with each AGM notice (s.103), and carry and report on its insurance (s.149, s.154). A 5-lot strata also needs a depreciation report (Regulation s.6.21). |
Best For
- ✓ New owners who put every date in this checklist into a shared calendar on the day of the first AGM.
- ✓ A small strata that opens its own account and moves the money within the week the developer hands it over.
- ✓ Owners who read the handover documents at the meeting and write down what is missing.
Usually Fails When
- ✕ Owners accept "no fees this year" and then face a full insurance renewal with nothing in the bank.
- ✕ The developer's policy runs out 4 weeks after the AGM and nobody has a quote for the strata's own policy.
- ✕ The warranty schedule sits in one owner's email and the 15-month common property cover ends before anyone files a claim.
What To Verify Before Spending Money
- → The date of the first sale and the number of lots sold, which set the first AGM window.
- → The insurance policy's end date, deductible and named insured on the handover papers.
- → The warranty provider's schedule of expiry dates for each unit and the common property.
Common questions
What should new owners do in the first year of a strata? +
Go to the first AGM, elect council, pass the first budget with at least 10% to the reserve fund, and take the handover documents (s.20, s.21). Within weeks, get the strata's own insurance in place before the developer's policy can end, 4 weeks after the AGM (s.15), and take control of the money and keys within 1 week (s.22). Then set up records, Form B, the tax filing and a list of warranty dates.
When is the first AGM of a new strata? +
In the 6 weeks that begin on the earlier of the day 50% plus one of the lots have been sold, or 9 months after the first sale (s.16). If the developer misses it, an owner can call the meeting, and the developer owes $1,000 for up to 30 days late plus $1,000 for each further 7 days (s.17; Regulation s.3.1(2)).
What documents does the developer hand over at the first AGM? +
Building permit plans and amendments, documents showing services located away from the plans, all strata contracts, any disclosure statement, the registered strata plan, the list of main contractors and consultants, all warranties and manuals, and the strata's records (s.20(2); Regulation s.3.2). The strata must keep most of them permanently (Regulation s.4.1(7)).
Can a new strata have no strata fees in the first year? +
The developer pays the strata's expenses only up to the end of the month of the first sale (s.7). After that the interim budget applies, and the first annual budget passed at the first AGM must put at least 10% into the reserve fund (Regulation s.3.01, s.3.4). Owners pay those budgets through strata fees.
Does a new strata need its own bank account? +
The Act does not use the words "bank account", but reserve fund money must be kept separately in insured accounts at BC savings institutions or allowed investments (s.95), and the developer must hand control of the money to council within 1 week of the first AGM (s.22). An account in the strata's legal name, "The Owners, Strata Plan [number]", is the practical way to do both.
How long does the developer's strata insurance last? +
The developer must make sure any strata policy runs at least 4 weeks after the first AGM (s.15). After that, council must keep the required insurance in place: full replacement value on the buildings and common property, and $2,000,000 of liability cover (s.149; Regulation s.9.2).
When does the home warranty start on a new strata? +
For each unit, on the earlier of actual occupancy or transfer of title. For the common property, on the first commencement date of a unit in each building (Homeowner Protection Act Regulation, Schedule 3 s.5). The warranty provider must give owners a schedule of the expiry dates, including those for common property (Homeowner Protection Act Regulation s.15).
What is the builders lien holdback when buying a new strata unit? +
A buyer from the owner developer must hold back 7% of the gross price for up to 55 days. Liens against the lot must be filed within 45 days of the sale (Strata Property Act s.88; Regulation s.5.2). A change to s.88 was passed in 2025 and is not yet in force.
Can new owners change the bylaws in the first year? +
In an all-residential strata, no bylaw can be amended before the second AGM without a unanimous vote (s.127(1)). After that, a 3/4 vote is enough, and the change has no effect until Form I is filed at the Land Title Office (s.128).
Does a new strata have to file a tax return? +
Yes. The Canada Revenue Agency says all corporations, including non-profit organizations and inactive corporations, must file a T2 return every tax year even with no tax payable. Most residential condominium corporations qualify as non-profit organizations, and some must also file form T1044.
When does a new small strata need a depreciation report? +
Only at 5 or more lots. A strata formed on or after July 1, 2024 and before July 1, 2027 must get its first report within 2 years of its first AGM (Regulation s.6.21(4)). A strata with fewer than 5 lots is exempt (s.6.22).
Who keeps the strata records after handover? +
The strata, through council or a manager it hires. Council must keep the records in s.35, give owners copies within 2 weeks for at most 25 cents a page, and keep each record for the time the Regulation sets: permanently for the strata plan and reports, 6 years for minutes, budgets and bank records (Regulation s.4.1, s.4.2).
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