SAMPLE REPORT — Sensitive details redacted
⚠️
Not Legal or Financial Advice This report is a document summary prepared for informational purposes only. It is not legal advice, not financial advice, and does not replace the review of a licensed lawyer, real estate professional, or financial advisor. We summarize what is in the documents — we do not interpret your legal rights or obligations. Before making any purchase decision, you should consult a qualified strata lawyer. StrataSpecialist accepts no liability for decisions made based on this report.
Sample Unit — Kelowna, BC
Strata Plan: [Strata Plan Redacted]
Generated: June 1, 2026
🔴
Overall Risk Rating
HIGH RISK
Active Supreme Court litigation over encroachments and parking with unresolved legal and financial exposure. The Residential CRF is critically underfunded at approximately 11.55% of optimum, and a mandatory special levy for commercial roof replacement is anticipated. Multiple deferred maintenance items, a recent emergency CRF expenditure used to cover an operating shortfall, and a recent strata management company change add further risk.
$404.88
Monthly Fees
22.72%
Reserve Funded
4 High / 3 Med
Red Flags
✓ None
Active Levy

🏢 Property Overview

AddressSample Unit — Kelowna, BC
Strata Plan[Strata Plan Redacted]
Property TypeMixed-Use Condo / Apartment (Residential Section)
Year Built2013
Estimated Units79

🅿️ Unit Entitlements — Parking, Storage & Assigned Property

Parking Stall(s) Assigned Interior Stall (Limited Common Property)
Storage Locker(s) Assigned Storage Locker
EV Charging Stall(s) —
Bike Storage Bikes may be stored in parkade locked to wall-mounted mounts; not permitted on decks or in hallways.

🚩 Red Flags (9)

🔴 HIGH Active Supreme Court Litigation — Encroachment & Parking Dispute
An adjacent developer filed a Notice of Civil Claim against the strata alleging trespass and encroachment of underground parking access, surface parking, and retaining walls on their adjacent lot. A hearing application is scheduled for mid-2026.
Legal documents; Council meeting minutes
Unknown — could include damages, legal costs, and mandatory removal of encroachments affecting parking and access.
Obtain a written legal status update and opinion on potential outcomes from the strata's litigation counsel before completing the purchase.
🔴 HIGH Critically Underfunded Contingency Reserve Fund — Residential Section
The Residential CRF holds approximately $122,014 against an optimum of ~$753,070 (11.55% funded). The Depreciation Report flags this as dangerously low and warns special levies may result if contributions are not urgently increased.
Depreciation Report; Financial Statements
Potential special levies; residential section has over $1.85M in anticipated capital expenditures over 30 years.
Request confirmation of council's adopted CRF contribution plan and timeline for bringing funding to acceptable levels.
🔴 HIGH CRF Loan Used to Cover Operating Fund Shortfall
A $30,000 loan from the Residential CRF was used to cover an operating fund cash-flow shortage. This must be ratified at a General Meeting and replenished, and is indicative of ongoing operating fund pressure.
Council meeting minutes
Further reduces an already critically low CRF; if not replenished could trigger further shortfalls.
Confirm ratification and replenishment resolution has been or will be passed at the next General Meeting.
🔴 HIGH Pending Mandatory Special Levy — Commercial Roof Membrane (~$1,646/unit)
The Depreciation Report confirms a $130,000 special levy is required for the commercial section roof membrane replacement. All three funding scenarios in the report require this levy.
Depreciation Report; AGM minutes
~$1,646 per unit as a special levy anticipated around 2038.
Understand how the special levy is apportioned between commercial and residential sections; factor into long-term ownership cost.
🟡 MEDIUM Strata Management Company Recently Changed
The previous management company was replaced by a new firm in late 2025. Pre-authorized debit agreements with the former manager are no longer valid, and some owners had not set up new arrangements with the incoming manager as of the most recent council meeting.
Council meeting minutes
Arrears risk; potential administrative disruption during transition period.
Confirm strata fees are current and a PAD agreement is in place with the new management company before closing.
🟡 MEDIUM Persistent Ceiling Cracking Throughout Common Hallways
A recent depreciation report inspection documents ceiling cracking on multiple floors of the building. An interior painting and crack-sealing project was quoted and approved from CRF but tabled to the next fiscal year.
Depreciation Report; Council meeting minutes
Up to $65,000 approved from CRF for hallway repairs; further costs possible if a structural cause is identified.
Inspect the subject unit and common hallways on the same floor; request an engineering assessment if cracking appears structural.
🟡 MEDIUM Adjacent Development Plan May Affect Strata Common Property Parking
A development plan was recently approved on the adjacent lot that the strata's lawyer advises may illegally proceed, as the lot is bound to be completed as a future phase of the strata. The plan may involve transfer of strata common property parking.
Council meeting minutes; legal correspondence
Potential loss of common property parking; further legal costs; uncertainty over future phase development.
Request full details and any City correspondence obtained by the Council from the strata manager.
🟢 LOW Emergency CRF Expenditure Pending Ratification
Emergency repairs to a commercial roof membrane were paid from the Corporate CRF under emergency spending provisions. A formal ratification and replenishment resolution by owners is still pending.
AGM minutes; Council meeting minutes
$27,326 drawn from Corporate CRF; insurance claim outcome unknown.
Confirm ratification resolution is passed and insurance claim result is known before closing.
🟢 LOW Bylaw Enforcement Action — Noise Complaint (Another Unit)
A noise complaint was filed against tenants in another strata lot whose owner is also a Council member. The Council member recused themselves during discussion; investigation ongoing.
Council meeting minutes
Minimal direct financial exposure; governance concern due to conflict of interest.
No immediate action required; monitor for resolution at the next Council meeting.

💰 Financial Snapshot

Monthly Strata Fees$404.88
CRF Balance$171,105.95
CRF Required (Projected)$753,070
Operating FundResidential operating fund shows a small positive balance; a $30,000 CRF loan was used in the prior fiscal year to cover an operating cash-flow shortage.
Recent Fee IncreasesCorporate section increased 14.79%; Residential section increased 6.37% at most recent renewal.
Reserve Fund Health 22.72%
70%+ healthy · 50–70% monitor · <50% concern
Monthly fees are the combined Strata Corp and Residential section amounts for the subject strata lot. The Residential CRF is significantly below optimum; the Depreciation Report recommends increasing contributions annually over the next 7 years.

⚠️ Special Levies

$65,000
DISCUSSED
Repair and repaint entry hallways — approved from CRF by 3/4 owner vote at most recent AGM
Already approved from CRF; not an additional levy on owners but reduces CRF balance.
$27,326
DISCUSSED
Emergency roof membrane replacement above ground-floor commercial unit — paid from CRF under emergency provisions
Council to propose replenishment resolution at next General Meeting; insurance claim also being explored.
$130,000
This unit: $1,646
PENDING
Commercial roof membrane replacement (Corporate Section) — mandatory special levy identified in Depreciation Report
Required under all three Depreciation Report funding scenarios. Per-unit share approximately $1,646. Due: 2038.

📋 Meeting Minutes Highlights 2025 – 2026

Major Decisions
  • Most recent AGM: Approved 14.79% Corporate and 6.37% Residential strata fee increase
  • Most recent AGM: Approved up to $65,000 from Residential CRF for crack sealing and hallway repainting
  • Most recent AGM: Ground-floor commercial space converted to daycare with 10-year lease — council decision only
  • Mid-year council: Strata filed legal response to adjacent developer's civil encroachment claim
  • Early 2026: Approved fire deficiency repairs totalling $13,613 plus tax
  • Early 2026: Approved 2-year mechanical/plumbing maintenance contract
  • Early 2026: Approved landscape contract for current season
Water / Leak Incidents
  • Mid-2025: Sink overflow in one unit caused water damage to the unit below; restoration costs charged back to the responsible owner
  • Mid-2025: Water leak from residential unit above ground-floor commercial space caused ceiling tile damage; repairs completed within weeks
  • Early 2025: Persistent shower leak in a suite above commercial property tracked and owner notified; commercial property managers involved
Ongoing Issues
  • Active Supreme Court litigation with adjacent developer — hearing scheduled mid-2026
  • $30,000 CRF loan used to cover operating shortfall not yet formally ratified by owners; replenishment resolution pending
  • Strata considering change of fiscal year-end — requires 3/4 owner vote
  • Council considering converting from Sections to Types — requires bylaw rewrite and owner votes
  • Exterior stairs on adjacent building sunken and damaged — quotes sought; full replacement deferred
  • Some owners in arrears following management company transition; lien/collection process initiated for multiple accounts
Deferred Maintenance
  • Interior hallway painting and crack sealing — tabled to next fiscal year budget
  • Exterior stair replacement on adjacent building — further quotes being sought
  • Replacement of exterior garbage enclosures — deferred to next AGM for owner vote
  • HVAC maintenance contract renewal — quotes sought following deficiency reports from previous contractor

📊 Depreciation Report

Report Date2025
WaivedNo
Funding ScenarioOption 1 recommended for both sections — 100% funding target. Residential contributions start at $20,000/year rising significantly for the first 7 years, then 2.5% annually. Corporate contributions follow a similar stepped increase.
Residential CRF is at approximately 11.55% of optimum — classified as Poor with special levy risk. Corporate CRF is at approximately 48.4% of optimum. Both sections require significant increases in annual contributions. No GIC or higher-yield investments currently in place.
End-of-Life Systems
  • Residential roof cover — effective age 12 years, replacement due approximately 2035–2038
  • Residential HVAC rooftop units — replacement due within the next 10–12 years
  • Commercial roof membrane — effective age 11 years, replacement due approximately 2038 (requires special levy)
  • Residential life safety and access control system — replacement due approximately 2034
  • Residential common area flooring and carpet — replacement cycle due approximately 2030
Upcoming Capital Expenditures
Residential Roof Cover — Building 1 SBS membrane replacement
2035
$234,221
Residential Roof Cover — Building 2 SBS membrane replacement
2029
$52,501
Residential Balconies & Railings replacement
2038
$86,221
Residential Elevator — full replacement
2034
$342,221
Residential Building Envelope — windows & doors partial replacement
2032
$38,583
Commercial Roof Cover — full replacement (special levy required)
2038
$288,702
Commercial HVAC — rooftop unit replacement
2041
$228,243
Common Driveway asphalt replacement
2040
$239,005

🛡️ Insurance

Carrier[Insurance Broker Redacted]
Earthquake Deductible$3,132,800
Water Damage Deductible$50,000
Earthquake deductible is 10% of the $31.3M appraised value — approximately $3.13M shared among all owners by unit entitlement. Water escape deductible is $50,000 per claim. Owners should carry personal condo insurance with deductible buydown coverage. Strata insurance does not cover owner betterments or upgrades.

📜 Bylaws — Key Restrictions

PetsPet registration required within one week of move-in. No explicit breed or weight restriction noted in documents reviewed.
Long-Term RentalsPermitted. Form K required within one week of tenant move-in.
Short-Term / AirbnbNot explicitly addressed in the documents provided.
Age RestrictionsNone noted.
RenovationsOwner responsible for maintaining strata lot per bylaws. Approval required for work affecting common property.
Realtor lockboxes banned from common and limited common propertySmoking permitted only in designated area; no smoking or vaping on patios or balconiesMaximum suite occupancy of 10 persons including balcony at any timeQuiet hours 11:00 PM to 7:00 AMMinimum $50 fine for rule violations; minimum $200 for bylaw infractions

⚖️ Litigation & Legal

🔴 Active litigation found

Active BC Supreme Court litigation filed by an adjacent developer against the strata, alleging trespass and encroachment of underground parking access, surface parking, and retaining walls on their adjacent lot. The developer seeks mandatory injunctions requiring removal of encroachments plus damages. The strata considers the claim meritless and has filed its response. A hearing application is scheduled for mid-2026.

✅ Recommended Actions Before Removing Subjects

  1. 1
    CRITICAL: Obtain a written legal status update from the strata's litigation counsel regarding the encroachment claim before completing the purchase — including an opinion on potential outcomes and financial exposure.
  2. 2
    CRITICAL: Request confirmation from the strata manager that the $30,000 CRF loan has been or will be ratified and replenished by owners at the next General Meeting.
  3. 3
    HIGH: Factor in the significantly underfunded Residential CRF (11.55% of optimum) when negotiating purchase price — monthly contributions will need to increase substantially over the next 7 years per the Depreciation Report.
  4. 4
    HIGH: Obtain personal condo insurance with at least $50,000 water escape deductible buydown coverage and consider earthquake loss assessment coverage given the strata's $3.13M earthquake deductible.
  5. 5
    MEDIUM: Confirm the status of the $65,000 CRF expenditure for hallway crack repair and painting — verify whether work has commenced and whether the full amount is expected to be spent.
  6. 6
    MEDIUM: Request the strata's legal correspondence and any municipal documentation regarding the recently approved development plan on the adjacent lot.
  7. 7
    MEDIUM: Verify that the strata fee payment arrangement has been set up with the new management company and that no arrears exist on the subject unit.
  8. 8
    LOW: Review the scope of recently approved fire inspection deficiency repairs to understand whether any work affects the subject unit or its floor.
  9. 9
    LOW: Have a strata lawyer review the Form B, title covenants, and any outstanding bylaw enforcement actions prior to removing subjects.

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This report is a document summary for informational purposes only. It does not constitute legal advice, financial advice, or a professional opinion of any kind. Always consult a qualified strata lawyer before making a purchase decision. StrataSpecialist accepts no liability for decisions made based on this report.