Condo Smarts – Management company Strata acts as agent

The successful management agreement is a valuable asset to the owners.

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Dear Tony:

We are an older strata corporation in Vancouver that treats the sale of our property as a liquidation.

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Our strata council signed a new management agreement in August. The contract allowed the management company to directly charge owners additional fees for records and document inspections. The rate is $ 100 per hour to cover office and staff time to provide these services. It goes beyond the financial capacity of our owners and prevents the owners from inspecting the records.

The contract also gives the management company 0.25 percent of the gross amount of the property sale if we can successfully settle the stratum with a buyer.

Is there a limit to the type of fees a strata corporation or property management company can charge?

– Helen B.

Dear Helen:

A strata management contract is an agency contract. When the company is hired, the brokerage and its employees, who are the managers, act as agents of the strata corporation.

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Many duties involve financial transactions, but none between the management company and the owners. When the company issues notices for stratum fee collections, special levies, deductible insurance claims, damages, fines and penalties, damages, and user fees, they are technically the corporation that issues these fees, and the managing company simply acts as an agent. .

The strata corporation cannot enter into a contract that allows the business to charge fees for additional services when it is not acting as agent of the corporation. The Strata Property Law and documents do not permit the charging of fees to landlords or tenants for inspection of records, and neither the strata corporation nor the manager may charge a fee for these services.

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The management company may have contracted with the strata corporation for an hourly rate to cover the cost of the record inspections. Still, these are an expense of the corporation, not directly of the owners.

All fees charged to the corporation and fees must be included with the service contract. These include fees for issuing certificates, such as a Form F Payment Certificate and a Form B Information Certificate.

When a strata corporation proceeds with a liquidation to sell the property, all fees associated with the liquidation must be approved in the liquidation resolutions along with a successful 80 percent vote at a general meeting.

Once the court agreements, meetings and requests are completed, if necessary, the liquidator will disburse the funds to the interest holders and owners, in accordance with the relevant formula that applies to your strata corporation.

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The strata council does not have the authority to authorize a portion of the advance commission from each owner’s income through a management agreement. If any charges or services are to be provided, these should be listed in the fee schedule with the management agreement, but they apply to the corporation, not to an outlay of the owner’s fees in a settlement.

A successful management agreement with your brokerage is a valuable asset to its owners and often turns into a long-term, trustworthy relationship. Whether your strata corporation is signing a new agreement, negotiating a renovation, or considering a major construction or liquidation, make an appointment for your attorney to join an electronic council meeting. It will be the best one or two hours invested on behalf of their owners.

Tony Gioventu is executive director of the Condominium Owners Association. Send an email to [email protected].

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Reference-theprovince.com

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