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GOBC Real Estate • Mortgage • Strata • Property Management Class Notes

2.3
STRATA PROPERTIES
AND CO-OPS IN BC

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 2.3 Strata Properties and Co-ops in BC
Creation of Strata can sue or be sued,
There are no “strata police” who regulate compliance all owners will be
with the strata legislation. liable
Every strata development is self-enforcing

Strata Plan Strata Corporation

Designates which parts of project are strata lots and which are Formed by the deposit of a Strata Plan whose members are the
common property owners of the strata lots in the strata plan- NEW Definition!
Registration and approval of a strata plan creates an estate in fee
Collectively, the group of owners as one entity, once the strata
simple for each individual strata lot
plan has been deposited at the Land Title office
Cannot be deposited at the land title office until the developer has Duty: to manage, maintain, insure & repair common area
obtained all the required approvals, such as approval from local
government authorities.

“Strata Plans” - Subdivide building

Bare Land Strata Plan NEW

- Is required by regulation to be identified as such in the strata plan itself
- may subdivide bare land (i.e., land without buildings)

“Bare Land Strata Plans” - Subdivide LAND

UNIT ENTITLEMENT
Purchaser’s Interests Property Taxes
The figure used to calculate a strata lot owner’s Fee simple for strata lot &
Each strata lot owner must pay his own property
Tenants in common for
contribution to the common expenses taxes (unit/lot) + share of common property taxes
common property

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 2.3 Strata Properties and Co-ops in BC

Duties of Strata Corporation: Funds:

Duty to Manage (Control, manage and administer the • OPERATING FUND - Common expenses (1 or more times per
common property) year), Interim budget
Duty to Repair and maintain • CONTINGENCY FUND (CRF) (Less than once a year)
• SPECIAL LEVIES (Each owner must pay a portion)
Duty to Insure common assets – NO set amount!

Duty to to keep records (minutes, records, budget,

Purchasers can obtain Strata Corporation Records by:
financial statements)

Duty to establish contingency and operating funds • Information Certificate (Form B)

• Certificate of Payment (Form F)

Certificate of Payment (form F)

– a document that informs a buyer of a strata lot whether there

Enforce its Bylaws & Rules
Strata Council is any money owing to the strata corporation in respect of a
on behalf of corporation
strata lot

Executive body which carries

Form B (Information Certificate)
out the activities needed so
▪ Monthly Strata Fees
the Strata Corp fulfills it’s ▪ Any amount owing to the strata
duty under the law ▪ Amount in the contingency reserve fund
▪ Amendments to the bylaws
1st Annual Meeting ▪ Judgments or orders against the strata corporation
▪ Storage locker(s), parking stall(s) allocated
Must give 20 days written notice in advance of every ▪ The most recent depreciation report must be attached
▪ The current budget
general meeting ▪ The rules of the strata corporation;
▪ Number of strata lots in the strata plan that are rented
• The obligation to exercise the powers and perform
the duties of the strata corporation. NOT in Form B:
• 20% shares in strata entitles you to call a special - Section’s accounts or Bylaws
general meeting to demand in writing that the - Schedule of Certificate of Title
strata corporation holds a SPECIAL general meeting must be provided by the strata corporation in the prescribed form within
(SGM) to consider a resolution or other matter. one week of a request by an authorized person.

Management Contract
Strata Corporation Can: ➢ Can hire someone for day-to-day responsibilities
➢ Need to 2 months’ notice to cancel a contract
➢ Enforce its Bylaws & Rules (must be filed in the Land Title office to ➢ Can hire management company, but it may only take
be enforceable) instructions from the Council
➢ Create rules to manage the common property
➢ Prohibit the rental of units Owner’s Remedies:
➢ Sue persons against whom the corporation has a legal claim ➢ May sue strata corporation
➢ Remove owner’s right to use some common property ➢ Court may order the appointment of
➢ Register a lien for unpaid strata fees (not fines) administrator
CANNOT: ➢ Obtain mandatory injunctions
• filing a lien for money owing for a fine ➢ Right to apply to the Supreme Court of BC for
• Collect fines by filing liens and forcing the sale of owners’ an order requiring the strata corporation to
strata lots comply with the Strata Property Act.

Owners CANNOT:
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➢ File a lien against Strata corporation
 2.3 Strata Properties and Co-ops in BC
The Human Rights Code
allows distinctions to be
on the basis of age

Can change bylaws and rules by 3/4 VOTE

1 vote per Strata Lot

Exemptions form Rental Restrictions:

• Family Members: (a spouse, a
parent, child of the owner
• Hardship

CANNABIS
STRATA AND COOPERATIVE A strata council or landlord that attempts to unduly restrict
(Condominium & Coop) an individual’s use of medical cannabis may find themselves
in contravention of human rights legislation, such as the BC
Human Rights Code.

Government has not introduced any specific restrictions on

STRATA (Condominiums) CO-OPS -own shares in a Corporation strata councils with respect to cannabis

- Fee simple - NO Fee simple ( only shares) The Cannabis Control and Licensing Act does not make any
- Filed in Land Title office - Cannot sell their interest amendments to the Strata Property Act
- Disclosure statement - Hard to obtain financing
- Residential Tenancy Act - Governed by Shareholders’
applies for rentals agreement & Cooperative Association
CONVERSION
- Easier to sell- A strata lot Act NEW
Developer 1st must obtain approval from municipal
owner may sell his or her lot - Disclosure statement
council
to whomever he or she - CANNOT rely on the Residential
- Conversions are not limited to buildings that were
wishes Tenancy Act! (although tenants
previously occupied or occupied for a residential
renting from co-op owners can
purpose NEW
- Board of Directors must approve a
- Where an existing rental building is being converted,
prospective Buyer
the existing tenants are covered by the protection of
the Residential Tenancy Act

Should be considered:
• Priority of rental over private ownership in the
area
• Relocation of tenants
• Life expectancy of the building
NOT Considered:
• The potential increase in real property taxes

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 2.3 Strata Properties and Co-ops in BC

MY NOTES:

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 2.3 Strata Properties and Co-ops in BC

Questions
1). The interest that is acquired by a purchaser of a strata lot is:

(1) a fee simple interest only.

(2) a fee simple interest in the strata lot and a fee simple interest, as a tenant in common with the other strata lot owners,
in the common property.

2). An owner may subdivide a property into strata lots even if there is no building on the property (i.e., strata lots consisting of
only land).
(1) True
(2) False

3). A strata plan:

(1) a plan contained in the disclosure statement filed with the superintendent which shows the developer's goals for the
development.
(2) filed in the land title office and designates which parts of a strata project are strata lots and which are common
property.
(3) used for all condominiums or cooperative developments.
(4) only necessary when creating five or more strata lots

4). Which of the following best describes the "strata corporation"?

(1) the individual strata owners collectively, once the strata plan has been deposited at the land title office
(2) a body of three to seven elected representatives from among the owners of the strata lots
(3) a corporation formed by a group of individuals who possess an undivided joint ownership interest in the land and/or
buildings
(4) a group of professional managers hired by a condominium project to handle the matters affecting the security and
maintenance of the common property, facilities and assets of the condominiums

5). Which statement is TRUE?

(1) Each strata lot owner owns a proportionate share of the common property based on his unit entitlement.
(2) Each state lot owner owns an equal share of the common property.

6). Common property in a strata title development is:

(1) owned equally by all members of the strata corporation.

(2) owned by the strata corporation.
(3) owned jointly by the strata corporation and the strata council.
(4) any property not designated as strata lots on a strata plan.

7). Strata corporations are not responsible for maintaining property insurance on common property.

(1) True
(2) False

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 2.3 Strata Properties and Co-ops in BC
8). Strata corporations do not have to determine the amount of contribution to the contingency reserve fund each year.

(1) True
(2) False

9). Strata corporations can keep a list of the names of tenants in their building

(1) True
(2) False

10). Which of the following is sufficient notice of an AGM?

(1) Notice emailed 7 days prior to the meeting
(2) Verbal notice given 20 days prior to the meeting
(3) Notice left under the door of each strata unit
(4) None of the above

11). The strata council is responsible to manage the common property in the best interests of the strata lot owners.
(1) True
(2) False

12). Which one of the following is NOT one of the legislated obligations imposed on a strata corporation under the Strata
Property Act?

(1) The obligation to exercise the powers and perform the duties of the strata corporation.
(2) The obligation to obtain and maintain property insurance of the common property
(3) The obligation to prepare certain records such as minutes of annual and special general meetings and council meetings.
(4) The obligation to manage the common property and common assets of the strata corporation for the benefit of the
owners.

13). The Human Rights Code allows distinctions to be on the basis of age, if specifically permitted by another Act or regulation,
therefore, it permits things like age restriction bylaws.

(1) True
(2) False

14). If an age restriction bylaw is passed by a strata corporation, it will apply to all of the current residents of the strata and may
require some residents to vacate their strata lots within 90 days of the passing of the bylaw.

(1) True
(2) False

15). Which of the following statements comparing cooperatives and condominiums is TRUE?

(1) Both condominiums and cooperatives are created by filing a plan in the land title office.
(2) Purchasers of both condominiums and cooperatives acquire a fee simple interest in the real property on which the
purchased unit is situated.
(3) Purchasers of condominiums will generally find it easier to finance their purchase than will purchasers of cooperatives.
(4) Both owners of condominiums and owners of cooperatives are equally free to sell their units to whomever they wish.

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 2.3 Strata Properties and Co-ops in BC

16). When converting an existing building to a strata development:

(1) the existing tenants must be relocated by the developer.

(2) the age and condition of the building is irrelevant.
(3) the developer must pay the existing tenants' moving expenses.
(4) none of the above statements is true.

17). Ron, a developer, wanted to convert a 15 unit three-story apartment he owned into a condominium, in order to realize a
greater profit on the sale of condo units then he would if he sold the building as a single entity. Which of the following
factors would the municipal council NOT be required to consider in deciding whether to give approval to the conversion
application?

(1) The fact that the construction of a large shopping mall four blocks from the building had caused land values to rise to
an extent where it was no longer economical to maintain the property as a small apartment.
(2) The fact that there was a relatively high rental vacancy rate in the area, as compared with the city as a whole.
(3) The fact that Ron had promised, as part of his conversion proposal, to make a voluntary payment of $500 to each of
the tenants, as a contribution to their moving costs.
(4) The fact that the building had a limited life expectancy due to its aging construction and the need for replumbing
throughout the entire building.

Answers: 1(2), 2(1), 3(2), 4(1), 5(1), 6(4), 7(2), 8(2), 9(1), 10(4), 11(2), 12(1), 13(1), 14(2), 15(3), 16(4), 17(1)

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