What is a Form B?
A strata Form B Information Certificate is a document that provides critical information about both the strata corporation and a specific strata lot, including: the amount of the regular monthly strata fees; the balance of any arrears and special levies for a specific unit; allocation of parking stalls and storage lockers as either part of the strata lot or as common or limited common property; details about previous unit alterations requiring future maintenance of the property owner; disclosure as to approved changes to bylaws that have yet to be filed at the Land Title Office; the amount in the strata’s contingency reserve fund (CRF); confirmation as to the strata corporation’s involvement in any lawsuits or civil resolution tribunal (CRT) cases; and attached copies of the strata corporation’s rules, annual budget, rental disclosure statement and depreciation report. Click here to see a blank sample Form B.
Each Form B is unique in that it is created for a specific strata lot at a given point in time and the information provided is verified by a signature of either the strata manager or, commonly in cases of self-managed strata corporations, by two strata council members on behalf of the strata corporation. Ergo, a Form B for strata lot 3 will be different than a Form B for strata lot 4, even if produced at the same time. Similarly, a Form B provided for strata lot 9 in January will be different than a Form B provided for the same strata lot in April. A Form B expires and is no longer valid after 60 days from the document date. Buyers and borrowers should make sure that they are given a current Form B because if the Form B expires prior to their Completion Date, a new one must be purchased for completion. (Note: Information can change after the Form B is issued and prior to the Completion Date, so it’s best practice for the Buyer’s Notary or lawyer to confirm financial information, such as strata fee amounts and arrears, directly with the strata council or management company prior to Completion; this is typically checked when the Buyer’s Notary orders and provides undertakings associated with the Strata Form F).
Form B as an Indicator
Arguably, a Form B may be the most important document for a purchaser to review prior to making an unconditional offer on a strata property. When read carefully, the Form B functions as a tool that indicates potential or actual issues with the property. It enables the purchaser to either: move forward with “eyes wide open,” knowing exactly what her money is buying; or, conversely, to not remove subjects on her purchase offer after learning of a pending lawsuit and inferring that a special levy may be required to fund upcoming litigation. For the same reason, a bank loaning money in exchange for a mortgage against a strata property will also want to see the Form B as a condition of (prior to) funding.
How to Order a Form B
A Form B Information Certificate must be ordered from the Strata Corporation – usually through the online e-Strata Hub portal or directly via the strata management company – and is paid for by the ordering party. The prescribed base cost is $35 for the Form B, but, depending on the management company and delivery platform, there may be additional per page, delivery and rush costs. For a real estate sale/purchase, a realtor will commonly order the Strata Form B; for a stand-alone refinance, your Notary Public can facilitate the order.
