Changing Strata Management Companies in BC

Few decisions test a strata council like deciding whether to switch strata property managers. Service has slipped, calls go unreturned, or the fee increase at renewal is hard to justify — and council starts asking what it actually takes to end the agreement. The Strata Property Act answers part of that question directly, and the contract itself answers the rest.

How a strata management contract can end

There are three practical routes, and they are not interchangeable.

1. Statutory cancellation under s.39. A contract for strata management services may be cancelled without liability or penalty, despite any provision of the contract to the contrary, by the strata corporation on 2 months' notice, if the cancellation is first approved by a resolution passed by a 3/4 vote at an annual or special general meeting. The other party to the contract has the mirror-image right: it may cancel on 2 months' notice as well (Strata Property Act s.39).

2. Using the contract's own terms, or simply not renewing. Section 39(2) says the strata corporation does not need any prior approval to cancel the contract in accordance with its terms or to refuse to renew it when it expires. So if your agreement contains its own termination clause, council can act on it without an owners' vote — but council is then bound by whatever that clause actually says about notice periods and consequences. Read it before relying on it.

3. Early-stage contracts in new buildings. A contract entered into before the first annual general meeting ends — regardless of any contrary provision — on the earliest of: four weeks after the second AGM, the termination date in the contract or agreed by the parties, or the cancellation date established under s.39. Owners may continue it by a majority vote at the second AGM, and that resolution does not require the usual notice of its proposed wording (s.24).

Questions councils actually ask

Do we need a 3/4 vote to terminate our strata management contract?
Only for the s.39 statutory cancellation route. A "3/4 vote" means at least 3/4 of the votes cast by eligible voters present in person or by proxy when the vote is taken, excluding abstentions — not 3/4 of all owners and not 3/4 of all strata lots (s.1).

How much notice do we give owners of the meeting?
At least 2 weeks' written notice, and the notice must include the proposed wording of any resolution requiring a 3/4 vote (s.45). Notice sent by mail, email or fax is deemed received four days after it is sent, so count backwards generously — an emailed SGM notice realistically needs to go out about 18 days ahead. Since November 24, 2022, every BC strata corporation may hold electronic or hybrid general meetings and accept electronic votes without passing a bylaw.

Can the outgoing manager keep our files until invoices are settled?
No. When a strata management contract ends, the person providing the services must, within 4 weeks, give the strata corporation the records referred to in s.35 that are in their possession or control; failing to do so attracts an amount calculated under the regulations (s.37).

Does a council member's spouse working for the new firm matter?
Yes. A council member with a direct or indirect interest in a contract or transaction must disclose it fully and promptly, abstain from voting, and leave the meeting while it is discussed and voted on (s.32). An undisclosed interest can expose the member to a court application unless the contract is ratified by a 3/4 vote, with interested persons excluded from voting (s.33).

Know what you are owed back

Section 35 lists what the corporation must prepare and retain: minutes of general and council meetings including vote results, the owner and council lists, books of account, the registered strata plan, bylaws and rules, contracts, legal opinions and tribunal decisions, budgets and financial statements, bank statements, Information Certificates, depreciation reports and electrical planning reports (s.35). Retention periods differ by record type under Regulation s.4.1 — minutes, books of account and financials for at least six years; contracts for at least six years after they end; correspondence for at least two years; depreciation and electrical planning reports permanently; bylaws, rules and the owner list as a current copy only.

Build a handover checklist against that list before the last day, not after. This is also where ManageStrata fits: the management company can change, but the strata's knowledge shouldn't — the documents, minutes, votes and books belong to the corporation. If you inherit a disorganized banker's box, tools like SearchStrata can run AI analysis across years of minutes and reports to surface what is actually in them.

Before you sign the next agreement

• Compare the termination clause in the proposed contract against the s.39 baseline.
• Confirm in writing how and when records will be returned.
• Check whether the firm's duties line up with your registered bylaws — not the Standard Bylaws, if yours have been amended. If you are unclear on the distinction, see strata bylaws vs rules.
• Decide who takes minutes during the transition; see how to prepare AGM minutes.

And note the alternative: there is no requirement under the Act to hire a property manager at all. Self-management by an elected council is lawful — whether it is wise depends on your building's size, systems and the volunteers available. For most mid-sized and larger buildings, a competent manager earns their fee.

This article is general information about BC strata law, not legal advice; verify against the current Strata Property Act and Regulation or consult a BC strata lawyer.