Borrowing funds for Strata Repairs
Blog by Diane Cardoso | December 7th, 2010
What if a Strata is planning a major building facelift, new roof, windows or paint? Strata Corporations can borrow funds and there are several banking institutions in BC who lend to Strata Corporations. A Strata Corporation can enter into a loan agreement which is a contractual document that will grant the lender the first priority of receipt of special levies and strata fees. Because Strata's cannot mortgage common property, this is the security required by most lenders to insure that they have the legal authority to collect on behalf of the strata corporation in the event that the strata corporation defaults on the loan. Stay tuned for part 2. Courtesy of REBGV.