Bad Strata Investments Hurt Condo Owners

There was news recently of two BC Condo complexes that got themselves into some hot water. The problem? They put their contingency fund reserves in risky investments lured by the potential of high returns. Unfortunately, these investments didn’t turn out as planned and now they’ve lost the owners money…to the tune of $100,000 in one case.

BC law prescribes (Strata Property Act Regulations, Section 6.11) what type of investments your strata can make with your contingency reserve fund. These investments (government bonds, GICs, bank account) are typically low risk and low return , but the point is that the money is there when you need it.

If you own a Vancouver Condo, do you know where your contingency reserve fund is invested? You have a right to know. If your Vancouver Condo money is being invested in the wrong type of financial vehicles, you should talk to a lawyer immediately.

What are your options? The lawyer may be able to recoup some losses for you through insurance. Otherwise, you really only have two options. One is to sue your Strata Council, and the other is to absorb the loss. Neither option is a winning one.

You can read the full article here.

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