If a strata corporation enters into a service agreement with a brokerage, is that brokerage required to hold the strata corporation’s funds?
No. As with other aspects of the services that a strata manager may provide, this is a matter of negotiation between the strata corporation and the brokerage. If a brokerage is to collect and hold funds on behalf of the strata corporation, those funds must be kept in a separate trust account in the name of the brokerage on behalf of the client e.g. ABC Strata Management Co. in trust for VR 12777. If the brokerage is to also collect and hold special levy and/or contingency reserve funds on behalf of the strata corporation, those funds must be held in at least one other separate trust account.
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