Hiring a ManagerJuly 9, 2026 · 7 min read

How to Change or Terminate Your Strata Management Company in BC (with Templates)

Q: Do we need a 3/4 vote or a majority?

A 3/4 vote at a general meeting to approve the cancellation.

Q: Can the manager charge us a cancellation penalty?

No. Section 39 lets you cancel without penalty, and any clause to the contrary is unenforceable.

Unhappy with your strata manager? How to terminate the contract in BC under Section 39 — the 3/4 vote, notice period, and handover — with free templates.

In BC, a strata corporation can cancel its management contract without penalty on two months' written notice, as long as owners first approve the cancellation by a 3/4 vote at a general meeting (Strata Property Act, section 39). Any clause in the contract that tries to impose a longer notice period or a termination penalty is not enforceable.

Your right to cancel under Section 39

Section 39 of the Strata Property Act is the key provision, and it's strongly in owners' favour. It says a strata management contract can be cancelled, without liability or penalty and despite anything the contract says to the contrary, by the strata corporation on two months' notice — provided the cancellation is first approved by a 3/4 vote at an annual or special general meeting. The manager, for their part, can also walk away on two months' notice.

Two takeaways matter most:

Penalty and long-notice clauses are void. If your contract threatens a termination fee or demands six months' notice, section 39 overrides it.
You still need the vote. A council cannot fire the manager on its own; the owners must approve it by 3/4 vote.

First, is switching actually the fix?

Before you start a formal termination, be honest about the problem. Slow responses and sloppy books are real reasons to move. But sometimes the friction is a stretched-thin manager carrying too many buildings, unclear direction from council, or unrealistic expectations. If the issue is really council dynamics, changing firms won't solve it — see dealing with a difficult strata council.

When switching is the answer, do your homework on the market first so you know what better looks like — and what it costs. Our guide to what strata management costs in BC covers real per-unit ranges.

Step by step: how to change your strata management company

Review the current contract. Note the term, the notice provision, and any auto-renewal ("evergreen") clause. Even if a clause tries to lock you in longer, section 39 still lets you out on two months' notice.
Line up a replacement first. Interview firms and get proposals before you terminate, so your building is never left unmanaged. Confirm each is BCFSA-licensed with a trust account.
Put the cancellation on a general-meeting agenda. It needs a 3/4 vote, so it goes to the owners at an AGM or a special general meeting. Give proper meeting notice — see the AGM prep guide.
Pass the resolution. Record the vote in the minutes.
Serve two months' written notice. The clock runs from delivery, so keep proof.
Coordinate the handover. The outgoing brokerage must return all of the strata's records within four weeks of termination and transfer the funds it holds in trust, with final reconciliations.
Onboard the new manager. Update signing authorities and banking, notify your insurance broker, and confirm who now issues Form B and Form F certificates.

One edge case: if you're a brand-new development, the contract the developer signed on the strata's behalf ends the earlier of four weeks after your second AGM (unless owners continue it by majority vote) or its own end date — so newer stratas often get a natural decision point without needing section 39 at all.

Template: cancellation resolution + notice letter

Adapt these to your building, confirm you've met meeting-notice requirements, and keep proof of delivery. When money or a messy handover is on the line, have a strata lawyer review before you send.

Template A — 3/4 vote resolution (for the AGM/SGM agenda):

``` RESOLUTION TO CANCEL THE STRATA MANAGEMENT CONTRACT (3/4 vote — Strata Property Act, s. 39)

The Owners, Strata Plan [BCS/NW/VR ____], resolve that:

1. The strata corporation cancel its strata management contract dated [____________] with [Management Company name] ("the Manager"), in accordance with section 39 of the Strata Property Act, on two (2) months' written notice.

2. The Strata Council be authorized to sign and deliver written notice of cancellation to the Manager, and to do all things necessary to complete the transition to a new strata manager, including arranging the transfer of records and trust funds.

Effective date of notice: on delivery to the Manager. ```

Template B — termination notice letter (to the outgoing brokerage):

``` [Strata Corporation name / Strata Plan No.] [Address] [Date]

[Management Company name] Attention: Managing Broker [Address]

Re: Notice of Cancellation of Strata Management Contract — Strata Plan [____]

Dear [Managing Broker],

On [date], at a [annual / special] general meeting of The Owners, Strata Plan [____], the owners approved by 3/4 vote the cancellation of the strata management contract dated [________] between the strata corporation and [Management Company name].

Pursuant to section 39 of the Strata Property Act, this letter is the strata corporation's written notice cancelling that contract, without penalty, effective two (2) months from the date of this notice — that is, on [end date].

Please confirm receipt, and provide no later than four weeks after the termination date: - all strata corporation records in your possession or control; - a full accounting and transfer of all funds held in trust for the strata corporation, with final reconciliations; - copies of current contracts, insurance policies, minutes, and the owner/tenant list; and - the name and contact for the person coordinating the handover.

Our incoming manager is [New firm]. Please liaise with them to ensure a smooth transition.

Sincerely, [Name], [Position], on behalf of Strata Council The Owners, Strata Plan [____] ```

What the outgoing manager must hand over

Within four weeks of termination, expect the return of:

Financial statements, the general ledger, and bank/trust reconciliations
All funds held in trust for the strata (operating and contingency reserve)
Meeting minutes, bylaws and rules, and filed resolutions
Contracts, warranties, and insurance policies
The owner and tenant list, and correspondence
Keys, fobs, and access devices
The most recent depreciation report

The brokerage keeps its own copies for the retention period BCFSA requires, but the originals and the money belong to the strata.

Common mistakes to avoid

Terminating before you have a replacement. Never leave the building unmanaged.
Trying to fire on a simple majority. It's a 3/4 vote, not 50% + 1.
Believing a penalty clause. It's void under section 39.
Skipping proper meeting notice for the resolution, which can invalidate the vote.
Not documenting the handover date and deliverables in writing.

Frequently asked questions

Can we terminate the contract immediately? Not unilaterally. It's two months' notice unless the manager agrees to less — or there's a serious breach, in which case get legal advice.

Do we need a 3/4 vote or a majority? A 3/4 vote at a general meeting to approve the cancellation.

Can the manager charge us a cancellation penalty? No. Section 39 lets you cancel without penalty, and any clause to the contrary is unenforceable.

Our contract auto-renews — are we stuck? No. Auto-renewal ("evergreen") clauses don't override section 39; you can still cancel on two months' notice with the required vote.