Read Full Answer at: http://www.rightpricedrealty.com/Blog.php/52



QUESTION OF THE DAY~ is where we answer a question that was emailed to us or asked by one of our clients. A question, we feel more people might have, and therefore the answer should be shared. If you do have a question you would like answered, please email us your question to info@rightpricedrealty.com



1.) The Strata Corporation’s budget is divided into two components:

An operating fund for common expenses which usually occur once a year or more often than once a year; and
A contingency reserve fund (CRF) for common expenses which usually occur less often than once a year or do not normally occur.


2.) Each owner must contribute to the Strata Corporation his or her strata lot’s share of the total contributions budgeted for the operating fund and for the contingency reserve fund (CRF), by means of “strata fees.” Strata fees are calculated in accordance with the requirements of the Strata Property Act. The strata fees for a strata lot’s share of the contributions to the operating fund and the CRF fund are calculated as follows:

Unit entitlement of the strata lot/ divided by the total unit entitlements of all the strata lots * multiplied by the total contributions and then / divided by 12


3.) The unit entitlement for a strata lot is the number indicated in the schedule of unit entitlements on the registered strata plan, and is the only number which can be used to determine the strata’s share of the common property and common expenses of the Strata Corporation.



4.) The unit entitlement is usually based on the habitable area of the strata lot as determined by the surveyor at the time of registration of the Strata Plan, rounded to the nearest whole number. The unit entitlement does not necessarily have to be based on this figure, however, and may be altered by the developer subject to approval by the Superintendent of Real Estate.



BIO: Strata Docs & Right Priced Realty