Running a Small Strata | Strata Corporation
The Strata Corporation: Who It Is and What It Owns
A strata corporation is the legal body made up of every owner in one strata plan, and the Strata Property Act creates it the moment the plan is deposited at the Land Title Office. Each owner holds their own strata lot, and all of them share the common property through it. This page covers when the corporation starts, who owns what, the duties it carries even in a duplex, its money, its contracts and lawsuits, its tax filings, and how many stratas BC has.
The short answer
- 01A strata corporation is created by law the moment the strata plan is deposited at the Land Title Office. Its name is "The Owners, Strata Plan [plan number]", and every strata lot owner is a member (Strata Property Act s.2, s.239).
- 02The corporation has no shares. Each owner owns their own strata lot, plus a share of the common property and common assets as a "tenant in common", in proportion to their unit entitlement (s.66).
- 03It must repair and maintain the common property, insure the buildings, keep records, collect strata fees into two funds and follow its bylaws. Council does this work for it (s.3, s.4, s.72, s.149).
- 04It can sign contracts, sue and be sued. A judgment against it is a judgment against all the owners, shared by unit entitlement (s.38, s.163, s.166).
- 05The Canada Revenue Agency (CRA) says every corporation must file a T2 return every year, even with no tax payable. Many stratas must also file form T1044.
- 06The Land Title and Survey Authority (LTSA) counted 35,098 filed strata plans and 807,738 active strata lots in BC as at March 31, 2026.
When the corporation starts
Land becomes 2 or more strata lots when a strata plan is deposited at the Land Title Office (s.239). From that moment a strata corporation exists, and the owners of the strata lots are its members under the name "The Owners, Strata Plan [registration number]" (s.2(1)). Depositing the plan is the whole incorporation step. The plan number has two or three letters and a number, such as LMS 1234 or KAS 9876, and it is usually at the end of the legal description on each strata lot's title.
The Act gives the corporation "the power and capacity of a natural person of full capacity" (s.2(2)). In plain words, it can do what an adult person can do with property and money, within the limits the Act sets. Its powers are used by a council, unless the Act, the Regulation or the bylaws say otherwise (s.4). Until the first annual general meeting (AGM), the owner developer acts as the council (s.5). The owner developer page covers that period.
Who owns what
The corporation has no shares to sell. Ownership sits with the owners, split in the way the table shows. Your share of everything held in common comes from your lot's unit entitlement.
| What | Who owns it | Source |
|---|---|---|
| Your strata lot | You, as the registered owner. It has its own title and its own parcel identifier (PID). | Act s.1, s.239(2) |
| Common property (land and parts of the building outside the lots, plus pipes and wires that serve more than one lot) | All the owners together, as tenants in common. Each owner's share equals their unit entitlement divided by the total. | Act s.66 |
| Limited common property (a yard, deck or parking space set aside for one lot) | Still common property, owned by all. One or more lots have the use of it. | Act s.1 |
| Common assets (land registered in the strata's name, and personal property it buys) | Held by the corporation for the owners, shared the same way. Buying or selling land needs a 3/4 vote. | Act s.66, s.78, s.79, s.82 |
| Reserve fund money | The corporation. A seller gets no refund of what they paid in. | Act s.101 |
For property tax, each strata lot and its share of the common property is one separate parcel (s.67), so each owner gets their own assessment.
What the corporation must do
These duties apply at every size. A 2-lot strata has the same list as a 200-lot strata; only a few rules change with size, such as quorum and the depreciation report. The rules by size page lists those.
| Duty | What it means | Source |
|---|---|---|
| Manage and maintain common property and common assets | For the benefit of the owners. Under the Standard Bylaws the strata also repairs the structure and exterior of the buildings, including parts inside a strata lot. | Act s.3, s.72; Standard Bylaw 8 |
| Insure | Property insurance on common property, common assets and the buildings on the strata plan at full replacement value, plus at least $2,000,000 of liability insurance. | Act s.149, s.150; Regulation s.9.2 |
| Pay the common expenses | Through strata fees paid into an operating fund and a contingency reserve fund. At least 10% of the operating budget goes to the reserve fund each year. | Act s.91, s.92; Regulation s.6.1 |
| Pass a budget | Each year, by majority vote at the annual general meeting (AGM). | Act s.103 |
| Hold an AGM | Within 2 months after the fiscal year ends, unless every eligible voter waives it in writing. | Act s.40, s.41 |
| Keep records | Minutes, lists of owners and council, books of account, contracts, bank statements, correspondence and more, each for a set time. | Act s.35; Regulation s.4.1 |
| Have bylaws and enforce them | The Standard Bylaws apply unless the strata filed different bylaws at the Land Title Office. Council must enforce bylaws and rules. | Act s.26, s.119, s.120 |
| Keep its address on file | The correct mailing address must be filed at the Land Title Office. A change goes on Form D, which has no LTSA fee. | Act s.62 |
| Issue certificates | Form B (Information Certificate) and Form F (Certificate of Payment) within one week of a request. | Act s.59, s.115 |
Money and the bank account
The strata must set up an operating fund for costs that come once a year or more often, and a contingency reserve fund (CRF) for costs that come less often, and the owners pay into both through strata fees (s.92). The CRF must be accounted for separately and kept in insured accounts at BC savings institutions or in investments the Regulation allows, such as term deposits and guaranteed investment certificates that are eligible for deposit insurance (s.95; Regulation s.6.11). Interest earned stays in the fund.
Owners of small stratas ask whether they can skip all of this. One owner of a new 3-unit strata in Vancouver wrote to a BC strata advice column in April 2024 because the largest owner wanted no bank account and no budget, and simply to split each bill three ways. The Act requires the budget and both funds at every size, and it requires the strata to keep its bank statements and cancelled cheques for 6 years (s.35; Regulation s.4.1). Running the money through an account in the name "The Owners, Strata Plan ___" is the plain way to meet those rules.
The budget and contingency fund page explains what council may spend without a vote.
Contracts and lawsuits
The corporation can enter contracts for its powers and duties, and can join organizations that serve its purposes (s.38). A contract it signs stays valid even if the council member who signed it was not properly elected, unless the other party knew or should have known (s.30).
It can be sued as representative of the owners about the common property, common assets, bylaws, rules, or its own acts, and an owner can sue it (s.163). It can sue as representative of all owners except any it is suing, once a 3/4 vote at a general meeting approves the suit (s.171). A judgment against the corporation is a judgment against all the owners, and each owner's share is set by unit entitlement (s.166). The Province puts it plainly: "A strata corporation does not have limited liability like a company." An owner who is suing the strata does not pay toward the strata's defence costs (s.167(2)).
Most strata disputes can go to the Civil Resolution Tribunal (CRT) after an owner asks council for a hearing. The disputes page covers how that works.
Tax filings
CRA says: "All corporations (including non-profit organizations, tax-exempt corporations, and inactive corporations) have to file a T2 return for every tax year, even if there is no tax payable." CRA also says "most residential condominium corporations qualify as non-profit organizations under paragraph 149(1)(l)". The Province adds that the strata "must file a tax return for each fiscal year with the Canada Revenue Agency."
| Return | Who must file | When |
|---|---|---|
| T2 corporation income tax return | Every corporation, every tax year, even with no tax payable. CRA lists only tax-exempt Crown corporations, Hutterite colonies and registered charities as exceptions. | Every year |
| T1044 non-profit organization information return | A strata that qualifies as a non-profit under paragraph 149(1)(l) and, in the year, received more than $10,000 in interest, dividends, rent or royalties, or had total assets over $200,000 at the end of the previous year, or filed a T1044 before. | Within 6 months after the fiscal year ends. Late penalty: $25 a day, at least $100 and at most $2,500. |
| T3 trust return | Not confirmed. CRA's bare trust questions and answers page (modified October 5, 2026) does not mention strata corporations. | Ask an accountant |
Keep every tax return for at least 6 years (Regulation s.4.1). The taxes page covers what owners can deduct.
How many strata corporations BC has
The LTSA says: "As at March 31, 2026, there were 35,098 filed strata plans and 807,738 active strata lots in BC." Each filed plan created one strata corporation. The LTSA does not publish how many of those have since been wound up, so 35,098 is the count of plans filed, the closest published figure. The Province estimates that 1.5 million people live in stratas, and it labels that figure an estimate.
A duplex or fourplex with a strata plan is counted in the 35,098, and the same Act governs it. The duplex strata page shows how the rules work with only two owners.
Best For
- ✓ Owners who open an account in the name "The Owners, Strata Plan ___" and run every strata payment through it.
- ✓ A small strata that passes a real budget, funds the reserve, and keeps minutes even when all the owners are friends.
- ✓ Owners who check the strata's insurance and tax filings each year, since every owner shares any judgment or penalty.
Usually Fails When
- ✕ One owner pays the bills from a personal account and nobody keeps books of account.
- ✕ The strata never files a T2 return because "it has no income".
- ✕ Nobody knows the mailing address filed at the Land Title Office, so legal notices go to an old address.
What To Verify Before Spending Money
- → The strata plan number in your title's legal description, which gives the corporation's legal name.
- → The mailing address on file at the Land Title Office.
- → The last T2 return and, if the thresholds apply, the T1044.
Common questions
What is a strata corporation? +
A strata corporation is the legal body made up of all the owners of the strata lots in one strata plan. It starts the moment the plan is deposited at the Land Title Office, it has the powers of a person, and it manages and maintains the common property for the owners (Strata Property Act s.2, s.3).
What is a strata corporation in BC? +
In BC it is the corporation the Strata Property Act creates for every strata plan, named "The Owners, Strata Plan [number]". Condos, townhouses and strata-titled duplexes and multiplexes all have one. An elected council runs it between general meetings (s.2, s.4).
Who owns the strata corporation? +
The owners of the strata lots are its members, and it has no shares. Each owner owns the common property and common assets as a tenant in common, in a share equal to their lot's unit entitlement divided by the total unit entitlement (s.66).
Who owns the land in a strata title? +
Each owner owns their own strata lot, and all the owners together own the common property land in unit entitlement shares (s.66). The corporation manages and maintains that land for them. Land registered in the corporation's own name is a common asset, and buying it needs a 3/4 vote (s.78).
Do strata corporations file tax returns? +
Yes. The CRA says all corporations, including non-profit organizations and inactive corporations, must file a T2 return for every tax year, even if no tax is payable. CRA also says most residential condominium corporations qualify as non-profit organizations, and some must file form T1044 as well. The strata must keep its tax returns for 6 years.
How many strata corporations are there in BC? +
The LTSA reports 35,098 filed strata plans and 807,738 active strata lots in BC as at March 31, 2026. Each filed plan creates one strata corporation. The LTSA does not say how many have since been wound up, so 35,098 is the count of plans filed. The Province estimates 1.5 million people live in stratas.
Is a strata corporation like a company with limited liability? +
No. A judgment against the strata is a judgment against all the owners, and each owner's share is set by unit entitlement (s.166). The Province says: "A strata corporation does not have limited liability like a company." Beyond that share, an owner has no personal liability for the strata's contracts, debts or council decisions (s.166(3)).
Does a small strata need a bank account? +
The law requires the strata to keep its contingency reserve fund in insured accounts at BC savings institutions or in investments the Regulation allows, and to account for it separately from other money (s.95). Special levy money is treated the same way (s.108). The strata must also keep bank statements and cancelled cheques for 6 years. These rules apply to a duplex as much as to a tower.
Can a strata corporation be sued? +
Yes. It can be sued as representative of the owners about the common property, common assets, bylaws, rules, or its own acts. An owner can also sue it (s.163). An owner who sues the strata does not pay a share of the strata's defence costs (s.167(2)).
Can the strata corporation sue someone? +
Yes, as representative of all owners except any being sued. Before it sues in court, a 3/4 vote at a general meeting must approve the suit (s.171). The Civil Resolution Tribunal (CRT) also hears most strata claims.
What is the legal name of my strata corporation? +
"The Owners, Strata Plan" followed by the plan's registration number, for example "The Owners, Strata Plan LMS 1234" (s.2). The number is usually at the end of your strata lot's legal description on the title.
Do I get my reserve fund money back when I sell? +
No. On the sale of a strata lot, the seller is not entitled to a return of contributions to the contingency reserve fund (s.101). The money stays with the corporation.
Who runs the strata corporation before any units are sold? +
The owner developer. Until the first AGM the owner developer acts as the council and must act honestly and with care (s.5, s.6). The owners elect their own council at the first AGM.
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