ritish olumbia - british columbia law institute · (realtor, re/max real estate services) tim...

BRITISH COLUMBIA

LAW INSTITUTE 1822 East Mall University of British Columbia Vancouver, British Columbia Canada V6T 1Z1 Voice: (604) 822 0142 Fax: (604) 822 0144 E-mail: [email protected] Website: https://www.bcli.org

Consultation Paper on

Common Property, Land Titles, and

Fundamental Changes for Stratas

Prepared by the Strata Property Law (Phase Two) Project

Committee

December 2018SupportedBy:

Disclaimer Theinformationandcommentaryinthispublicationisnotofferedaslegaladvice.Itrefersonlytothelawatthetimeofpubli-cation,andthelawmayhavesincechanged.BCLIdoesnotundertaketocontinuallyupdateorreviseeachofitspublicationstoreflectpost-publicationchangesinthelaw.TheBritishColumbiaLawInstituteanditsdivision,theCanadianCentreforElderLaw,disclaimanyandallresponsibilityfordamageorlossofanynaturewhatsoeverthatanypersonorentitymayincurasaresultofrelyinguponinformationorcom-mentaryinthispublication.Youshouldnotrelyoninformationinthispublicationindealingwithanactuallegalproblemthataffectsyouoranyoneelse.Instead,youshouldobtainadvicefromaqualifiedlegalprofessionalconcerningtheparticularcircumstancesofyoursituation._____________________________________________©2018BritishColumbiaLawInstituteTheBritishColumbiaLawInstituteclaimscopyrightinthispublication.Youmaycopy,download,distribute,display,andoth-erwisedealfreelywiththispublication,butonlyifyoucomplywiththefollowingconditions:

1. Youmustacknowledgethesourceofthispublication;

2. Youmaynotmodifythispublicationoranyportionofit;

3. YoumustnotusethispublicationforanycommercialpurposewithoutthepriorwrittenpermissionoftheBritishCo-lumbiaLawInstitute.

ThesematerialscontaininformationthathasbeenderivedfrominformationoriginallymadeavailablebytheProvinceofBrit-ishColumbiaat:http://www.bclaws.ca/andthisinformationisbeingusedinaccordancewiththeQueen’sPrinterLicense—BritishColumbiaavailableat:http://www.bclaws.ca/standards/2014/QP-License_1.0.html.Theyhavenot,however,beenproducedinaffiliationwith,orwiththeendorsementof,theProvinceofBritishColumbiaandTHESEMATERIALSARENOTANOFFICIALVERSION.

British Columbia Law Institute

1822EastMall,UniversityofBritishColumbia,Vancouver,BC,CanadaV6T1Z1

Voice:(604)822-0142Fax:(604)822-0144E-mail:[email protected]:https://www.bcli.org

-----------------------------------------------

TheBritishColumbiaLawInstitutewascreatedin1997byincorporationundertheprovin-cialSocietyAct.Itsstrategicmissionistobealeaderinlawreformbycarryingout:

• thebestinscholarlylawreformresearchandwriting;and

• thebestinoutreachrelatingtolawreform.

-----------------------------------------------ThemembersoftheInstituteare:

ThomasL.Spraggs(Chair) AndreaL.Rolls(Vice-chair)MargaretH.Mason,QC(Treasurer) OliverA.Fleck(Secretary)Dr.ElizabethAdjin-Tettey Hon.MarionJ.AllanEmilyL.Clough Dr.TeshW.DagneMathewP.Good TejasB.V.MadhurDylanT.Mazur SusanM.MercerBrentB.Olthuis LisaA.Peters,QCDr.JanisP.Sarra

ThemembersemeritusoftheInstituteare:

Prof.JoostBlom,QC ArthurL.Close,QCProf.RobertG.Howell D.PeterRamsay,QC

-----------------------------------------------

ThisprojectwasmadepossiblewiththesustainingfinancialsupportoftheLawFoundationofBritishColumbiaandtheMinistryofJusticeforBritishColumbia.TheInstitutegratefully

acknowledgesthesupportoftheLawFoundationandtheMinistryforitswork.

-----------------------------------------------

Strata Property Law (Phase Two) Project Committee

TheStrataPropertyLaw(PhaseTwo)ProjectCommitteewasformedinfall2013.Thisvol-unteerprojectcommitteeismadeupofleadingexpertsinstrata-propertylawandpracticeinBritishColumbia.Thecommittee’smandateistoassistBCLIindevelopingrecommenda-tionstoreformstrata-propertylawinthesevenareasselectedforstudyinthisphase-twoproject.Theserecommendationswillbesetoutinfinalreportsforeacharea.Themembersofthecommitteeare:

PatrickWilliams—chair (Partner,ClarkWilsonLLP)

VeronicaBarlee(Jul.2014–present) (SeniorPolicyAdvisor,HousingPolicyBranch,MinistryofNaturalGasDevelop-mentandResponsibleforHousing)

LarryButtress(Oct.2013–Jun.2016) (DeputyExecutiveOfficer,RealEstateCouncilofBritishColumbia)

GarthCambrey (RealEstateInstituteofBritishColumbia)

TonyGioventu (ExecutiveDirector,CondominiumHomeOwnersAssociation)

IanHolt(Oct.2016–Apr.2017) (Realtor,Re/MaxRealEstateServices)

TimJowett (SeniorManager,E-BusinessandDeputyRegistrar,LandTitleandSurveyAuthority)

AlexLongson(Jul.2016–present) (SeniorComplianceOfficer,RealEstateCouncilofBritishColumbia)

JudithMatheson(Oct.2013–Oct.2016) (Realtor,ColdwellBankerPremierRealty)

ElaineMcCormack (Partner,WilsonMcCormackLawGroup)

SusanMercer(Sep.2016–present) (NotaryPublic)

DougPage(Oct.2013–Jul.2014) (DirectorofLegislation,HousingPolicyBranch,MinistryofNaturalGasDevelop-mentandResponsibleforHousing)

DavidParkin (AssistantCitySurveyor,CityofVancouver)

AllenRegan (Vice-President,BaysidePropertyServicesLtd.)

GarrettRobinson(Apr.2017–present) (Realtor,Re/MaxCrestRealty—Westside)

StanleyRule(Oct.2013–Sep.2016) (Lawyer,SabeyRuleLLP)

SandyWagner (PresidentoftheBoardofDirectors,Van-couverIslandStrataOwnersAssociation)

EdWilson (Partner,LawsonLundellLLP)

KevinZakreski(stafflawyer,BritishColumbiaLawInstitute)istheprojectmanager.

Formoreinformation,visitusontheWorldWideWebat:https://www.bcli.org/project/strata-property-law-phase-two

Call for Responses Weareinterestedinyourresponsetothisconsultationpaper.Itwouldbehelpfulifyourre-sponsedirectlyaddressedthetentativerecommendationssetoutinthisconsultationpaper,butitisnotnecessary.Generalcommentsoncommonproperty,land-titleissues,andfun-damentalchangesforstratasarealsowelcome.Thebestwaytosubmitaresponseistousearesponsebooklet.YoumayobtainaresponsebookletbycontactingtheBritishColumbiaLawInstituteorbydownloadingoneathttps://www.bcli.org/project/strata-property-law-phase-two.Youdonothavetousearesponsebooklettoprovideuswithyourresponse.Responsesmaybesenttousinoneoffourways—

bymail: BritishColumbiaLawInstitute1822EastMallUniversityofBritishColumbiaVancouver,BCV6T1Z1

Attention:KevinZakreski

byfax: (604)822-0144

byemail: [email protected]

byonlinesurvey: linkfromwww.bcli.org/project/strata-property-law-phase-twoIfyouwantyourresponsetobeconsideredbyusasweprepareourreportoncommonproperty,landtitles,andfundamentalchangesforstratas,thenwemustreceiveitby28February2019.Privacy YourresponsewillbeusedinconnectionwiththeStrataPropertyLaw(PhaseTwo)Project.Itmayalsobeusedaspartoffuturelaw-reformworkbytheBritishColumbiaLawInstituteoritsinternaldivisions.Allresponseswillbetreatedaspublicdocuments,unlessyouex-presslystateinthebodyofyourresponsethatitisconfidential.Respondentsmaybeidenti-fiedbyname,title,andorganizationinthefinalreportfortheproject,unlesstheyexpresslyadviseustokeepthisinformationconfidential.Anypersonalinformationthatyousendtousaspartofyourresponsewillbedealtwithinaccordancewithourprivacypolicy.Copiesofourprivacypolicymaybedownloadedfromourwebsiteat:https://www.bcli.org/privacy.

Consultation Paper on Common Property, Land Titles, and Fundamental Changes for Stratas

British Columbia Law Institute vii

TABLE OF CONTENTS ExecutiveSummary.............................................................................................................xiii

Chapter1.Introduction.........................................................................................................1AnOverviewofthisConsultationPaper’sSubjects.....................................................................................1AboutthePublicConsultation..............................................................................................................................2AbouttheStrataPropertyLaw(PhaseTwo)Project.................................................................................2ThePhase-TwoProject’sSupporters................................................................................................................4TheStrataPropertyLaw(PhaseTwo)ProjectCommittee......................................................................4AnOverviewofthisConsultationPaper..........................................................................................................4Chapter2.Strata-PropertyBasics......................................................................................7Introduction.................................................................................................................................................................7TheEssentialElementsofaStrataProperty..................................................................................................7TheThreeGenerationsofStrata-PropertyLegislation.............................................................................8

Introduction......................................................................................................................................................................8StrataTitlesAct1966–74............................................................................................................................................8StrataTitlesAct/CondominiumAct1974–2000...............................................................................................8StrataPropertyAct2000–present...........................................................................................................................9

TheOwner-Developer...........................................................................................................................................10CreationofaStrataPropertybyDepositofaStrataPlan......................................................................10KindsofStrataPlans..............................................................................................................................................10StrataLots..................................................................................................................................................................11CommonProperty,LimitedCommonProperty,andCommonAssets.............................................12

Commonproperty.........................................................................................................................................................12Limitedcommonproperty........................................................................................................................................12Commonassets..............................................................................................................................................................13

TheStrataCorporation.........................................................................................................................................13TheFundamentalsofStrata-CorporationGovernance...........................................................................14

Bylawsandrules...........................................................................................................................................................14Annualgeneralmeetingsandspecialgeneralmeetings..............................................................................15Thestratacouncil..........................................................................................................................................................17Budgetsandfunds........................................................................................................................................................17

CommonExpenses..................................................................................................................................................18UnitEntitlement......................................................................................................................................................19

Whatisunitentitlementandhowisitused?....................................................................................................19Howisunitentitlementdetermined?..................................................................................................................19Whenisunitentitlementdeterminedandwhereisitfound?...................................................................21

TheDutytoRepairandMaintainProperty.................................................................................................21Commonpropertyandcommonassets...............................................................................................................21Stratalots..........................................................................................................................................................................23

DisputeResolutionandtheCivilResolutionTribunal............................................................................24


viii British Columbia Law Institute

Chapter3.CommonProperty...........................................................................................25ScopeofthisChapter.............................................................................................................................................25BackgroundInformationonCommonProperty........................................................................................26

Definitionof“commonproperty”..........................................................................................................................26Rightstouse,ownershipof,andadministrationofcommonproperty.................................................28Definitionandnatureoflimitedcommonproperty......................................................................................29Howtodesignatecommonpropertyaslimitedcommonproperty........................................................30Short-termexclusiveuseofcommonproperty...............................................................................................31

IssuesforReform—DefiningCommonProperty.......................................................................................31Introduction.....................................................................................................................................................................31Shouldthedefinitionof“commonproperty”beamended?.......................................................................32

Briefdescriptionoftheissue.....................................................................................................................32Discussionofoptionsforreform..............................................................................................................32Thecommittee’stentativerecommendationforreform...............................................................34

Shouldthedefinitionof“limitedcommonproperty”beamended?.......................................................35Briefdescriptionoftheissue.....................................................................................................................35Discussionofoptionsforreform..............................................................................................................35Thecommittee’stentativerecommendationforreform...............................................................36

IssuesforReform—TransactionsInvolvingCommonProperty........................................................36Introduction.....................................................................................................................................................................36ShouldtheStrataPropertyActprovidealeaseofafixturethatiscommonpropertyorofa

commonassetenteredintobytheowner-developermaynotexceedfiveyears?................39Briefdescriptionoftheissue.....................................................................................................................39Discussionofoptionsforreform..............................................................................................................40Thecommittee’stentativerecommendationforreform...............................................................41

Howshould“fixtures”bedefinedforaprovisionapplyingtoaleaseofafixturethatiscommonpropertyorofacommonassetenteredintobytheowner-developer?.....................................41Briefdescriptionoftheissue.....................................................................................................................41Discussionofoptionsforreform..............................................................................................................42Thecommittee’stentativerecommendationforreform...............................................................43

ShouldtheStrataPropertyActprovidethatthesuperintendentofrealestatemayapprovealeaseofafixturethatiscommonpropertyorofacommonassetenteredintobytheowner-developerwithatermthatexceedsfiveyears?.....................................................................43Briefdescriptionoftheissue.....................................................................................................................43Discussionofoptionsforreform..............................................................................................................43Thecommittee’stentativerecommendationforreform...............................................................44

IssuesforReform—ParkingStallsandStorageLockers........................................................................44ShouldtheStrataPropertyActcontinuetoallowleasesandlicencesofparkingstallsand

storagelockers?...................................................................................................................................................46Briefdescriptionoftheissue.....................................................................................................................46Discussionofoptionsforreform..............................................................................................................47Thecommittee’stentativerecommendationforreform...............................................................47

Shouldtheperiodinwhichanowner-developermayamendthestrataplantodesignateparkingstallsaslimitedcommonpropertyfortheexclusiveuseofownersofstratalotsinthestrataplanbeextended?..........................................................................................................................48Briefdescriptionoftheissue.....................................................................................................................48Discussionofoptionsforreform..............................................................................................................48Thecommittee’stentativerecommendationforreform...............................................................48


British Columbia Law Institute ix

ShouldtheStrataPropertyActprovidethatanyparkingstallsthathavenotbeendesignatedaslimitedcommonpropertybytheowner-developerundersection258becomecommonproperty?................................................................................................................................................................49Briefdescriptionoftheissue.....................................................................................................................49Discussionofoptionsforreform..............................................................................................................49Thecommittee’stentativerecommendationforreform...............................................................50

Chapter4.LandTitles.........................................................................................................51BackgroundInformationonLand-TitleIssues..........................................................................................51ScopeofthisChapter.............................................................................................................................................52IssuesforReform—EmergingIssuesinSubdivisionControl..............................................................53

Introduction....................................................................................................................................................................53Shouldallstrataplansrequiretheapprovalofanapprovingofficer?...................................................59


Shouldastrataplanthatdepictstheboundariesofstratalotsastheexteriorsurfaceofafloor,wall,orceiling,orasapointexternaltoabuilding,beheldtothesameapprovalrequirementsthatapplytoabare-landstrataplan?..........................................................................62Briefdescriptionoftheissue.....................................................................................................................62Discussionofoptionsforreform..............................................................................................................63Thecommittee’stentativerecommendationforreform...............................................................64

Shouldthedefinitionof“previouslyoccupied”insection14.1oftheStrataPropertyRegulationbeamendedtoexcludetemporaryconstructionpurposes?............................................................65Briefdescriptionoftheissue.....................................................................................................................65Discussionofoptionsforreform..............................................................................................................65Thecommittee’stentativerecommendationforreform...............................................................66

IssuesforReform—DepictingCommonPropertyforStrataPlans...................................................66Introduction....................................................................................................................................................................66ShouldtheStrataPropertyActexpresslyrequireastrataplantoincludeadepictionof

commonproperty?.............................................................................................................................................68Briefdescriptionoftheissue.....................................................................................................................68Discussionofoptionsforreform..............................................................................................................68Thecommittee’stentativerecommendationforreform...............................................................69

IssuesforReform—DepictingtheVerticalLimitsofLimitedCommonPropertyforStrataPlans....................................................................................................................................................................69Introduction....................................................................................................................................................................69ShouldtheStrataPropertyActrequirestrataplanstoincludeacross-section?..............................70


ShouldtheStrataPropertyRegulationrequirestrataplanstoincluderepresentationstoidentifylimitedcommonproperty?............................................................................................................71Briefdescriptionoftheissue.....................................................................................................................71Discussionofoptionsforreform..............................................................................................................72Thecommittee’stentativerecommendationforreform...............................................................72

ShouldtheStrataPropertyActrequirethat,whenlimitedcommonpropertyisdesignatedbya3/4vote,thesketchplanthatmustbefiledinthelandtitleofficemustbepreparedbyaBritishColumbialandsurveyor?.................................................................................................................72


x British Columbia Law Institute


IssuesforReform—CertificateofPayment..................................................................................................74Introduction.....................................................................................................................................................................74ShouldaFormF(CertificateofPayment)berequiredwhenatransferofastratalottakesplace

underacourtorder?..........................................................................................................................................77Briefdescriptionoftheissue.....................................................................................................................77Discussionofoptionsforreform..............................................................................................................77Thecommittee’stentativerecommendationforreform...............................................................78

Chapter5.FundamentalChanges....................................................................................81Meaningof“FundamentalChanges”...............................................................................................................81TransactionsClassifiedasFundamentalChanges.....................................................................................81

Transactionsrequiringauthorizationbyaresolutionpassedbyaunanimousvote......................81Othertransactions........................................................................................................................................................83

ScopeofthisChapter.............................................................................................................................................84IssuesforReform—AmendingaStrataPlan...............................................................................................84

Introduction.....................................................................................................................................................................84OverviewoftheStrataPropertyAct’sprovisionsonamendingastrataplan....................................85

Introduction.......................................................................................................................................................85Commonproceduralelements..................................................................................................................86Designatinglimitedcommonproperty..................................................................................................87Addingto,consolidating,ordividingastratalot...............................................................................89Makinglandheldbythestratacorporationintoanewstratalot..............................................91Addingastratalottocommonproperty...............................................................................................92Makingcommonpropertyintolandheldbythestratacorporation........................................92Addinglandheldbythestratacorporationtothecommonproperty.....................................93

ShouldtheStrataPropertyActcontinuetorequirearesolutionpassedbyaunanimousvotetoauthorizeamendingastrataplantodesignatelimitedcommonproperty?.............................94Briefdescriptionoftheissue.....................................................................................................................94Discussionofoptionsforreform..............................................................................................................94Thecommittee’stentativerecommendationforreform...............................................................95

ShouldtheStrataPropertyActcontinuetorequirearesolutionpassedbyaunanimousvotetoauthorizeamendingastrataplantoremoveadesignationoflimitedcommonproperty?.....................................................................................................................................................................................96Briefdescriptionoftheissue.....................................................................................................................96Discussionofoptionsforreform..............................................................................................................96Thecommittee’stentativerecommendationforreform...............................................................96

ShouldtheStrataPropertyActContinuetoRequireaResolutionPassedbyaUnanimousVotetoAuthorizeAmendingaStrataPlantoAddto,Consolidate,orDivideaStrataLot?..........97Briefdescriptionoftheissue.....................................................................................................................97Discussionofoptionsforreform..............................................................................................................98Thecommittee’stentativerecommendationforreform...............................................................98

ShouldtheStrataPropertyActContinuetoRequireaResolutionPassedbyaUnanimousVotetoAuthorizeAmendingaStrataPlantoAddaStrataLottoCommonProperty?..................98Briefdescriptionoftheissue.....................................................................................................................98Discussionofoptionsforreform..............................................................................................................99Thecommittee’stentativerecommendationforreform...............................................................99


British Columbia Law Institute xi

IssuesforReform—SchedulestotheStrataPlan......................................................................................99Accompanyingdocumentstothestrataplan....................................................................................................99AmendingtheScheduleofUnitEntitlement..................................................................................................100

Amendmentbyresolutionpassedbyaunanimousvote............................................................101Amendmentasaconsequenceofastrata-planamendment.....................................................102Amendmentbyapplicationtosupremecourt.................................................................................103Correctionoferrorsinaregisteredstrataplan..............................................................................104Significantunfairness.................................................................................................................................105LandTitleAct.................................................................................................................................................106

Changingthebasisofcontributiontosharedexpenses............................................................................106Changetobasisforcalculationofcontributiontooperatingfundandcontingency

reservefund.........................................................................................................................................107Changetobasisforcalculationofcontributiontospeciallevy................................................108

ShouldtheStrataPropertyActcontinuetorequirearesolutionpassedbyaunanimousvotetoauthorizeamendingaScheduleofUnitEntitlementtoreflectachangeinthehabitableareaofaresidentialstratalotinastrataplaninwhichtheunitentitlementofthestratalotiscalculatedonthebasisofhabitablearea?.................................................................................109Briefdescriptionoftheissue..................................................................................................................109Discussionofoptionsforreform...........................................................................................................109Thecommittee’stentativerecommendationforreform............................................................110

ShouldtheStrataPropertyActcontinuetorequirearesolutionpassedbyaunanimousvotetoauthorizechangingthebasisonwhichastratalot’sshareofthecontributiontothestrata’soperatingfundandcontingencyreservefundiscalculated?.......................................110Briefdescriptionoftheissue..................................................................................................................110Discussionofoptionsforreform...........................................................................................................111Thecommittee’stentativerecommendationforreform............................................................112

ShouldtheStrataPropertyActcontinuetorequirearesolutionpassedbyaunanimousvotetoapproveaspeciallevywheneachstratalot’sshareofthespeciallevyiscalculatedinawayotherthaninaccordancewithsections99,100,or195oftheact?.................................112Briefdescriptionoftheissue..................................................................................................................112Discussionofoptionsforreform...........................................................................................................113Thecommittee’stentativerecommendationforreform............................................................113

ShouldaScheduleofVotingRightsberequiredtoaccompanydepositofastrataplancontainingatleastonenonresidentialstratalot?.............................................................................114Briefdescriptionoftheissue..................................................................................................................114Discussionofoptionsforreform...........................................................................................................114Thecommittee’stentativerecommendationforreform............................................................115

IssuesforReform—Amalgamation...............................................................................................................115Amalgamationgenerally.........................................................................................................................................115Developmentofthelaw...........................................................................................................................................116AmalgamationundertheStrataPropertyAct...............................................................................................117Reasonsforamalgamating.....................................................................................................................................119ShouldtheStrataPropertyActrequirearesolutionpassedbyan80-percentvotetoapprove

anamalgamationagreement?....................................................................................................................120Briefdescriptionoftheissue..................................................................................................................120Discussionofoptionsforreform...........................................................................................................120Thecommittee’stentativerecommendationforreform............................................................121

Chapter6.Conclusion........................................................................................................123AppendixA—ListofTentativeRecommendations..................................................125


xii British Columbia Law Institute

AppendixB—SummaryConsultation...........................................................................129

AppendixC—BiographiesofProject-CommitteeMembers..................................139PrincipalFundersin2017...............................................................................................147


British Columbia Law Institute xiii

EXECUTIVE SUMMARY An overview of the consultation paper Thisconsultationpapertacklesselectedlegalissuesinthreedistinctareasofstrata-propertylaw.Itcontains25tentativerecommendationstoreformtheStrataProper-tyActandtheStrataPropertyRegulation.Thesetentativerecommendationsaddresssomeofthebasicbuildingblocksofastrataproperty,manyofwhichservetodefinethenatureofastratapropertyasaninterestinland.Theconsultationpaperexaminesissuesthatariseoverthecourseofastrataproper-ty’slifecycle:fromtheearlyplanningandconceptionofastrata-propertydevelop-ment,throughitsday-to-dayoperation,andtothemajor,deeplyalteringcrossroadsthatsomematurestratapropertiesencounter.Manyoftheseissuesrelatetothestrataplan,afoundationaldocumentforastratapropertythatshapesanddefinesthestratapropertyasaninterestinland.Theconsultationpaperfirstconsiderscommonproperty:howitisdefined,long-termleasesofit,andthespecialcaseofparkingstallsandstoragelockersascom-monproperty.ThenitlooksattheinteractionoftheStrataPropertyActwithBritishColumbia’sleadingreal-propertystatute,theLandTitleAct.Hereitexaminesemerg-ingissuesinthesubdivisionoflandandwaysinwhichthedepictionofcommonpropertyonastrataplancanbeimproved.Finally,theconsultationpapergrappleswithfundamentalchangestoastrataproperty.Thesearethesortsofmajortransac-tionsthateffectivelyreorderthelegalinterestsinastratapropertyorthewaysinwhichfinancialresponsibilitieswithinastratapropertyareallocated.Theytendtorequireauthorizationbyaunanimousvoteofthestrata-lotowners.Theoverridingquestionforthispartoftheconsultationpaperiswhetherthisvotingthresholdshouldbeloweredtoan80-percentvote,whichwouldmirrorrecentlegislativechangesrespectingterminatingastrataproperty.Theconsultationpaper’stentativerecommendationsareintendedtostimulatepub-liccomment.Readersmaygivetheirviewsontheconsultationpaper’sproposalsbyavarietyofmeans—fillingoutallorpartofaresponsebooklet,sendingalettertoBCLI,orcompletinganonlinesurvey.Asummaryconsultationisalsoavailableforreaderswhowanttorespondonlytoaselectgroupofhighlightedproposals.BCLIwillconsiderreaderresponsesincraftingitsfinalrecommendationsforreform.Foraresponsetobeconsideredinthisprocess,BCLImustreceiveitby28Febru-ary2019.


xiv British Columbia Law Institute

About the Strata Property Law Project—Phase Two ThisisthefifthandfinalconsultationpapertobepublishedinBCLI’sStrataProper-tyLawProject—PhaseTwo.Thephase-twoprojectbuildsontheconsultationandresearchcarriedoutinphaseoneoftheproject.ItaddresseslegislativereformoftheStrataPropertyAct,withthegoalofpromotingthedevelopmentofthenextgen-erationoftheact.Previousconsultationpapershaveconsideredterminatingastra-ta,complexstratas,governanceissuesforstratas,andinsuranceissuesforstratas.Our supporters and the project committee TheStrataPropertyLawProject—PhaseTwohasbeenmadepossiblebyprojectfundingfromtheRealEstateFoundationofBritishColumbia,theNotaryFoundationofBritishColumbia,theMinistryofMunicipalAffairsandHousingforBritishCo-lumbia,theRealEstateCouncilofBritishColumbia,theRealEstateInstituteofBrit-ishColumbia,StrataPropertyAgentsofBritishColumbia,theAssociationofBritishColumbiaLandSurveyors,theVancouverIslandStrataOwnersAssociation,andtheCondominiumHomeOwnersAssociation.BCLIiscarryingouttheStrataPropertyLawProject—PhaseTwowiththeassistanceofavolunteerprojectcommittee.Thecommitteeismadeupofadiverserangeofexpertsinthestrata-propertyfield.Its13currentmembershailfromthelegalandnotarialprofessions,owners’organizations,thestrata-managementandreal-estateprofessions,andthepublicsector.Content of the consultation paper Introduction Theconsultationpapercontainssixchapters,includingitsbriefintroductoryandconcludingchapters.Theintroductorychaptergivesanoverviewoftheprojectandtheconsultationprocess.Italsoprovidesasummaryoftheconsultationpaper’sten-tativerecommendations.Strata-property basics Theconsultationpaper’ssecondchaptercontainsageneraloverviewofstrata-propertylaw.Thisdiscussionispitchedatreaderswhoareunfamiliarwiththedis-tinctivetermsandconceptsfoundinthisbodyoflaw.It’sintendedtoprovidethesereaderswithjustenoughinformationaboutthecreationandoperationofstratapropertiestoallowthemtoworktheirwaythroughthechaptersthatfollow.


British Columbia Law Institute xv

Common property Insimpleterms,anythingdepictedonastrataplanthatisn’tastratalotisconsid-eredtobecommonproperty.Butthereareahandfulofareaswhereit’sdifficulttodrawastraightforward,black-and-whitedistinctionbetweenstratalotsandcom-monproperty.Thesecasesinvolvecertainkindsofpropertythat(1)arelocatedinaboundaryzoneor(2)formpartofanintegratedsystem,whichitselfmaybelocatedwithineithercommonpropertyorastratalot,orboth.Eventhoughcommonpropertyisafoundationalpartofthestrata-propertyconcept,someaspectsofitsdefinitioncontinuetovexparticipantsinthestratasector.Inthischapter,thecommitteeconsidersamendingthedefinitionsofcommonpropertyanditssubsetlimitedcommonpropertytoaddressfrustrationsthathavecroppedupinpractice.Afterwrestlingwiththeissuesthatarisefromthecurrentdefinitionofcommonproperty,thecommitteedeterminedthatretainingthestatusquoisthesaf-estandbestoption.Thecommitteedoesproposeaclarifyingamendmenttothedef-initionoflimitedcommonproperty.Then,thechapterexaminesapracticethathasalsocausedfrustrations—long-termleasesofcommonpropertyenteredintobyastrataproperty’sowner-developer.Thecommitteeproposesreininginthispractice,bylimitingthetermsofsuchleasestofiveyears,whenthecommonpropertyatissueisafixture.Finally,thechapterlooksatparkingstallsandstoragelockers,withaparticularfo-cusontheproceduresetoutinsection258oftheStrataPropertyAct.Thisproce-dureallowsanowner-developertoamendastrataplanafterithasbeendepositedinthelandtitleoffice.Thecommitteetentativelyrecommendsreformingtheproce-durebygivinganowner-developeruntilthethirdannualgeneralmeetingtoamendthestrataplananddesignateparkingstallsaslimitedcommonproperty.Inaddition,thecommitteeproposesdoingawaywiththepracticeofallowingleasesorlicencesofparkingstallsandstoragelockers.Land titles TheStrataPropertyActwasintendedtoworkinharmonywithBritishColumbia’ssystemforregisteringinterestsinlandundertheLandTitleAct.Thecommitteeex-aminedtherelationshipbetweenthetwoactsandmadetentativerecommendationstoaddresstwoareaswhereconflictshaveemerged.Thefirstconcernssubdivisionofland.InBritishColumbia,subdivisioniscontrolledbyadetailedlegalframework.Thedepositofastrataplaninthelandtitleofficeisconsideredtobeasubdivision.Howthisactistreateddependsonthekindofstrataplanbeingdeposited.Onekind,commonlyreferredtoasabuildingorconventional


xvi British Columbia Law Institute

strataplan,subdividesabuildingandissubjecttoalightregulatorytouchifthebuildinghasn’tbeenpreviouslyoccupied.Theotherkind,calledabare-landstrataplan,subdividesland.Itissubjecttothekindofdetailedreviewandapprovalre-quirementsthatapplytoanyothertypeofsubdivisionofland.Thisdifferentialtreatmenthasled,insomecases,toabusivepracticesinwhichwhatisfunctionallyabare-landstrataplanischaracterizedasabuildingstrataplaninor-dertobenefitfromthelighterregulatoryrequirements.ThecommitteeproposestargetedchangestotheStrataPropertyActtostampoutthispractice.Thesetarget-edchangeswillalsopreservethecurrentregulatorystructurefortruebuildingstra-taplans.Theotherareaconsideredinthischapterinvolvesthedepictionofcommonproper-tyonaregisteredstrataplan.Thecommitteeproposesarangeofspecificreformsthatwouldclarifythisarea.Thesetentativerecommendationsareintendedtopro-videcertaintyforstrata-lotownersandthebroaderland-titlesystem.Fundamental changes Thischapterexaminesthevotingthresholdforauthorizingfar-reachingchangestoastrataproperty,suchasamendingthestrataplantodesignatelimitedcommonproperty,amendingaScheduleofUnitEntitlement,andamalgamatingstratacorpo-rations.Ineachcase,thecommitteeconsideredwhethertheexistingthresholdshouldbechangedtoaresolutionpassedbyan80-percentvote.Thecommitteehadamixedresponsetotheissuesforreforminthischapter.Initsview,circumstancesjustifyloweringthevotingthresholdinsomecasesbutnotinothers.Forexample,thecommitteeproposesloweringthethresholdforauthorizinganamendmenttoastrataplantodesignatelimitedcommonproperty.Thecommit-teefavoursthisapproachinthiscasebecauseitwillgivestratacorporationsaddedflexibilityandisunlikelytoprejudicetheinterestsofastrata-lotowner.Butthecommitteefavoursretainingthecurrentvotingthresholdfortheconversecase,inwhichastrataplanisamendedtoremoveadesignationoflimitedcommonproper-ty.Initsview,thiscasepresentsagreaterdangeroftheprocedurebeingusedforabusivereasons.Conclusion BCLIencouragesreaderstorespondeithertothefullconsultationpaperorthesummaryconsultation.Readers’responsesassistthecommitteeincraftingthefinalrecommendationsforreformforthisportionoftheStrataPropertyLawProject—PhaseTwo.


British Columbia Law Institute 1

Chapter 1. Introduction An Overview of this Consultation Paper’s Subjects “Strataplansareamechanismbywhichthelandissubdividedintoindividualstratalots”andcommonproperty.1Bycausingthisresult,“strataplan[s]andtheaccom-panyingdocumentsdepositedinthelandtitleofficedeterminethelegalstructureofthestratacorporationandthephysicalstructureofthestratadevelopment.”2Forthisreason,strataplansarecommonlydescribedas“fundamental”3and“essential”4documentsforstrataproperties.Strataplansareattheheartofthisconsultationpaper,whichexaminesthreesub-jects.ThisconsultationpapercontainsproposalstoreformtheStrataPropertyAct5andtheStrataPropertyRegulation6toaddresslegalissuesconcerningcommonproperty,land-titleissues,andfundamentalchangesforstrataproperties.Eventhoughthereachofthisconsultationpaperismoreexpansivethanasystematicex-aminationofstrataplans,astheconsultationpaperconsiderscommonproperty,landtitles,andfundamentalchangesforstratapropertyitendsupspendingmuchofitstimelookingatlegalissuesinthosethreesubjectsfromthestandpointoftheis-sues’effectsonstrataplans.Theconsultationpaperincludestentativerecommendationsaddressingthedefini-tionofcommonproperty,transactionsinvolvingcommonproperty,andparkingstalls.Amongtheland-titleissuesitconsidersareemergingissuesinsubdivisioncontrol,whichcanflowfromdifferencesinkindsofstrataplans.Finally,theconsul-tationpaperexamineswide-rangingfundamentalchangestoastrataproperty,suchasamendingastrataplan,amendingtheScheduleofUnitEntitlement,oramalgam-atingstratacorporations.

1. TerminalCityClubTowervBritishColumbia(AssessorofAreaNo9—Vancouver),2004BCCA466

atpara37,SaundersJA,dissenting(quotingdecisionofthePropertyAssessmentAppealBoardofBritishColumbia).

2. ContinuingLegalEducationSocietyofBritishColumbia,ed,BritishColumbiaStrataPropertyPracticeManual(Vancouver:ContinuingLegalEducationSocietyofBritishColumbia,2008)(loose-leaf2018update)at§2.1A.

3. ChowvTheOwners,StrataPlanNW3243,2015BCSC1944atpara5,SmithJ.

4. MikeMangan,TheCondominiumManual:AComprehensiveGuidetoStrataLawinBritishColum-bia,3rded(Vancouver:StrataPublishing,2010)at7.

5. SBC1998,c43.

6. BCReg43/2000.


2 British Columbia Law Institute

About the Public Consultation TheconsultationpaperisthecornerstoneofBCLI’spublicconsultationoncommonproperty,landtitles,andfundamentalchangesforstratas.Itsetsoutall25tentativerecommendationsforreformoftheStrataPropertyActandtheStrataPropertyReg-ulation,forreaderstoreviewandtoprovidetheircomments.Italsocontainsthere-searchuponwhichthosetentativerecommendationsarebased.Forreaderswhopreferashorteroverviewofthesetopics,asummaryconsultationisavailableatappendixBtothisconsultationpaper.7Afreestandingcopyofthesummaryconsultationmayalsobedownloadedfromhttps://www.bcli.org/.Thesummaryconsultationpresentsahigh-leveldiscussionofthreehighlightedissuesoncommonproperty,landtitles,andfundamentalchangesforstratas.Thepublicconsultationisopenuntil28February2019.Readersmaysubmittheirresponsesbyavarietyofelectronicandtraditionalmeans.8Aftertheconsultationperiodcloses,responsestotheconsultationpaperwillbetak-enintoaccountinpreparingareportthatwillcontainthefinalrecommendationsoncommonproperty,landtitles,andfundamentalchangesforstratas.BCLIprojectspublishingthisreportinearly2019.

About the Strata Property Law (Phase Two) Project ThisConsultationPaperonCommonProperty,LandTitles,andFundamentalChangesforStratasispartoftheBritishColumbiaLawInstitute’songoingStrataPropertyLawProject—PhaseTwo.BCLIbegantheStrataPropertyLawProject—PhaseTwoinsummer2013.Theproject’sgoalsaretostudysevenareasofstrata-propertylaw,identifyissuescallingforreformofthelaw,andrecommendchangestotheStrataPropertyActtoaddressthoseissues.Thephase-twoprojectbuildsonBCLI’sStrataPropertyLawProject—PhaseOne,whichwascompletedin2012.Overthecourseofthephase-oneproject,BCLIcar-riedoutinitiallegalresearchandfocussedconsultationwithleadingexpertsinthestrata-propertyfield.Theresultsofthisresearchandconsultationwerepublishedin

7. See,below,at137-145.

8. See,above,nearthebeginningofthisconsultationpaperatthepageheaded“callforresponses”(unnumberedpagev).



BCLI’sReportonStrataPropertyLaw:PhaseOne,9whichrecommendedthatBCLIundertakealaw-reformprojecttoexaminethefollowingsubjects:(1)fundamentalchangestoastrata;(2)complexstratas;(3)selectedgovernanceissues;(4)commonproperty;(5)selectedland-titleissues;(6)selectedinsuranceissues;(7)leaseholdstratas.Thefirstsubjectinthephase-twoprojectwasaddressedintheproject’sfirsttwopublications,theConsultationPaperonTerminatingaStrata10andtheReportonTerminatingaStrata.11TheLegislativeAssemblyofBritishColumbiaimplementedthisreport’srecommendationsinfall2015.12Complexstratas,theproject’ssecondsubject,werethefocusoftheConsultationPa-peronComplexStratas13andtheReportonComplexStratas.14Theprojecthasalsoseenconsultationpapersongovernanceissues15andinsuranceissues.16Workonfinalreportsforthosesubjectsisongoingasthisconsultationpa-perisoutforconsultation.Unfortunately,thetimeandresourcesavailabletotheprojecthaveruledouttheplannedreviewofitsseventhsubject,leaseholdstrataplans.

9. Report70(2012),online:[perma.cc/FBV8-J9C7].

10. (2014),online:[perma.cc/XK58-9PLF].

11. Report79(2015),online:[perma.cc/GW7W-VCBX].

12. SeeNaturalGasDevelopmentStatutesAmendmentAct,2015,SBC2015,c40,ss37–55(inforce28July2016).

13. (2016),online:[perma.cc/A43A-3NN7].

14. Report81(2017),online:[perma.cc/NZZ8-JQMP].

15. SeeBritishColumbiaLawInstitute,ConsultationPaperonGovernanceIssuesforStratas(2018),online:[per-ma.cc/3A57-2889].

16. SeeBritishColumbiaLawInstitute,ConsultationPaperonInsuranceIssuesforStratas(2018),online:[perma.cc/S84T-3JYK].



The Phase-Two Project’s Supporters TheStrataPropertyLawProject—PhaseTwohasbeenmadepossiblebyprojectgrantsfromtheRealEstateFoundationofBritishColumbia,theNotaryFoundationofBritishColumbia,theMinistryofMunicipalAffairsandHousingforBritishCo-lumbia,theRealEstateCouncilofBritishColumbia,theRealEstateInstituteofBrit-ishColumbia,StrataPropertyAgentsofBritishColumbia,theAssociationofBritishColumbiaLandSurveyors,theVancouverIslandStrataOwnersAssociation,andtheCondominiumHomeOwnersAssociation.

The Strata Property Law (Phase Two) Project Committee Incarryingoutthephase-twoproject,BCLIisgratefultohavetheassistanceofanexpertprojectcommittee.BriefbiographiesofcommitteemembersmaybefoundinappendixC.17

An Overview of this Consultation Paper Apartfromitsbriefintroductoryandconcludingchapters,andachapterprovidinganoverviewofthebasicsofstratapropertylaw,thisconsultationpaperdividesneatlyintothreesubstantivechapters:

• commonproperty:thischaptercontainsthecommittee’sextensivecon-siderationofpotentialchangestothedefinitionofcommonproperty,anditsproposedreformstothedefinitionoflimitedcommonproperty,tolimitthetermsofaleaseofcommon-propertyfixturesenteredintobytheowner-developeronbehalfofthestratacorporation,andtotheallocationofpark-ingstallsundersection258oftheact;

• landtitles:thischapterexaminestheintersectionoftheStrataPropertyActwiththeLandTitleAct,18containingtentativerecommendationsonemerg-ingissuesinsubdivisioncontrolinvolvingstrataplans,depictingcommonpropertyandtheverticallimitsofcommonpropertyonstrataplans,andonrequiringaFormF(CertificateofPayment)whenastratalotistransferredunderacourtorder;

17. See,below,at177–184.

18. RSBC1996,c250.



• fundamentalchanges:thischapterconsidersfar-reachingchangestostra-taplansandstratacorporations,suchasamendingastrataplanoramend-ingaScheduleofUnitEntitlementandchangingthebasisforcalculatingcontributionstostrataexpenses,withafocusonwhetherthevotingthresh-oldforresolutionsauthorizingsuchfundamentalchangesmaybeloweredfromaunanimousvote19toan80-percentvote.20

19. SeeStrataPropertyAct,supranote5,s1(1)“unanimousvote”(“meansavoteinfavourofares-

olutionbyallthevotesofalltheeligiblevoters”).

20. Seeibid,s1(1)“80%vote”(“meansavoteinfavourofaresolutionbyatleast80%ofthevotesofalltheeligiblevoters”).



Chapter 2. Strata-Property Basics Introduction Thisconsultationpaperdealswithsomeofthefoundationalpiecesofstrata-propertylaw:strataplans,commonproperty,unitentitlement.Adetailedintroduc-tiontothelegalissuesfacingthesesubjectscomesinthechaptersthatfollow.Butreadersmaystillhavesomequestionsaboutthebasicfunctionsofstrata-propertylaw.Whatisastratapropertyatlaw?Howisitestablished?Whatareitsessentialelements?Howaredecisionsmadeamongacollectiveofpropertyowners?Howdothoseownersdivideupcommonexpenses?Who’sresponsibleforrepairs?And,ifthereisaconflictonalegalissue,whoresolvesit?Thischapterisdevotedtogivinganswerstothesequestions.Theanswersaredelib-eratelyconcise,asthesequestionsdon’tformthecoreofthisconsultationpaper.Butit’sstillimportanttohavesomegraspofhowthelawoperatesonthislevel.Thisin-formationformsnecessarybackgroundtothemorein-depthdiscussionsthatdomi-natethefollowingchapters.

The Essential Elements of a Strata Property Strataproperties21arealegaldevicethataccommodatesindividualownershipofaninterestinlandwithinacollective,multi-unitstructure.Thelawcontainsmanysuchdevices.Whatsetsastratapropertyapartfrom,say,acooperative,ajointtenancy,atenancyincommon,oralong-termlease,arethefollowing“twoessentialelements”:

• thedivisionofpropertyintounits,tobeindividuallyowned,andcommonelements,tobeownedincommonbytheownersoftheunits;and

• anadministrativeframeworktoenabletheownerstomanagetheproperty.22

21. Formanypeoplethenamestratapropertyitselfisthefirststumblingblockthat’sencounteredin

adiscussionofthisareaofthelaw.BritishColumbiaistheonlyjurisdictioninCanadathatusesthisname.Itssignificanceismainlyhistorical:itreflectstheoriginsofthisprovince’slawinleg-islationthatwasenactedfirstinAustralia.OtherCanadianprovincesandterritoriesdrewonAmericanlawtocreatetheirlegislation.SotheyadoptedtheleadingAmericanword,condomini-um.Thetwotermsactuallydescribethesameconcept.Nothinginlawturnsontheuseofoneortheother.

22. OntarioLawReformCommission,ReportontheLawofCondominium(Toronto:DepartmentoftheAttorneyGeneral,1967)at3.



Theseessentialelementsexistwithinabodyoflawthat“reflectsthecombinationofseverallegalconcepts”—especiallyconceptsdrawnfromreal-estatelaw,easements,andcorporatelaw.23

The Three Generations of Strata-Property Legislation Introduction Itmightbepossibletoachievethiscombinationofrulesandessentialelementsbycarefullyexecutedeasementsandagreements.ButthroughoutCanada,theUnitedStates,andAustralia,stratapropertieshavebeenfosteredbylegislation.BritishColumbiaisnoexceptiontothisapproach.Thisprovincehassupportedthecreationandadministrationofstratapropertiesbylegislation,whichcanbeseenasdevelopinginthreedistinctgenerations.Strata Titles Act 1966–74 InApril1966,BritishColumbiabecamethefirstjurisdictioninCanadatoenactstra-ta-propertylegislation.Thefirst-generationact,calledtheStrataTitlesAct,camein-toforceinSeptemberofthatyear.24Thefirst-generationactwasskeletallegislation.Itdidlittlemorethanenablepeopletocreateandadministerstrataproperties.Strata Titles Act/Condominium Act 1974–2000 In1974,thesecondgenerationofthelegislationappeared.25Thesecond-generationactretainedtheframeworksetoutinthefirst-generationactandenhanceditbyaddingnewprovisionsdedicatedtoconsumerprotectionandaddressingconcernsabouttheadministrationofstrataproperties.

23. ShawCablesystemsvConcordPacificGroup,2007BCSC1711atpara6,LeaskJ(quoting2475813

NovaScotiaLtdvRodgers,2001NSCA12atpara5,CromwellJA).

24. SBC1966,c40.

25. StrataTitlesAct,SBC1974,c89.SeealsoStrataTitlesAmendmentAct,1977(No2),SBC1977,c64(containingamajorsetofamendmentstothe1974act).



In1979,thenameofthelegislationwaschangedtoCondominiumAct.26Thesecond-generationactiscommonlyknownbythisname.27Strata Property Act 2000–present Thethirdgenerationofstrata-propertylegislation,theStrataPropertyAct,wasen-actedinJuly1998.28TheStrataPropertyActwasonlybroughtintoforceafteratransitionalperiod,whichlasteduntil1July2000.Althoughitpreservesmuchoftheframeworkputinplacebythefirsttwogenera-tionsofthelegislation,theStrataPropertyActalsocontainsalargenumberofprovi-sionsnotfoundinpreviousacts,makingitafarmorecomprehensivestatutethanitstwopredecessors.PartsoftheStrataPropertyActhavebeensignificantlyamendedin2009,292012,30and2015.31Thesechangesprimarilyrelatetofinancialplanning,disputeresolution,andtermination.TheStrataPropertyActisprobablythemostdetailedandsophisticatedlegislationofitskindinCanada.Itcontainsanarrayoflawsonsubjectsthataren’taddressedinequivalentstatutesfoundintheotherprovincesorterritories.32Buttheactwasalsoconsciouslydraftedtoprovideenhancedflexibilitytocertainkindsofstratas.Thisqualitycanmakeitdifficulttodiscusstheact’sprovisions,asit’softennecessarytonotebothageneralruleandaseriesofexceptions.Forthesakeofsimplicity,the

26. RSBC1979,c61.

27. SeeCondominiumAct,RSBC1996,c64.

28. Supranote5.

29. SeeStrataPropertyAmendmentAct,2009,SBC2009,c17.

30. SeeCivilResolutionTribunalAct,SBC2012,c25.

31. SeeNaturalGasDevelopmentStatutesAmendmentAct,2015,supranote12.

32. SeeAlberta:CondominiumPropertyAct,RSA2000,cC-22(seealsoCondominiumPropertyAmendmentAct,2014,SA2014,c10,s55[notinforce]);Saskatchewan:TheCondominiumProp-ertyAct,1993,SS1993,cC-26.1;Manitoba:TheCondominiumAct,SM2011,c30,CCSMcC170;Ontario:CondominiumAct,1998,SO1998,c19(seealsoProtectingCondominiumOwnersAct,2015,SO2015,c28,Schedule1[partlyinforce]);Québec:arts1038–1109CCQ;NewBrunswick:CondominiumPropertyAct,SNB2009,cC-16.05;PrinceEdwardIsland:CondominiumAct,RSPEI1988,cC-16;NovaScotia:CondominiumAct,RSNS1989,c85;NewfoundlandandLabra-dor:CondominiumAct,2009,SNL2009,cC-29.1;Yukon:CondominiumAct,RSY2002,c36;NorthwestTerritoriesandNunavut:CondominiumAct,RSNWT1988,cC-15(duplicatedforNu-navutbys29oftheNunavutAct,SC1993,c28).



pagesthatfollowwillfocusonthegeneralprovisionsandwilltouchonexceptions,wherenecessary,infootnotes.

The Owner-Developer Thepersonwhostartsthestratificationprocessiscalledanowner-developer.Beforesomeonebecomesanowner-developer,thatpersonisanownerofland33whowantstodevelopitasastrataproperty.Thatpersonisresponsibleforshep-herdingtheprojectthroughtheprocedureforstratifyingland.Afterthisprocessiscomplete,theowner-developerholdsalltitlesinthedevelopment,whicharegradu-allysoldofftopurchasers.Theowner-developercanhaveadecisiveinfluenceoverboththeoriginalconcep-tionandtheongoingoperationofastrataproperty.Manyofthekeydecisionsthataremadeinsettingupastratapropertyoriginatewiththeowner-developer.Thesedecisionscanreverberatelongaftertheowner-developerhasleftthescene.

Creation of a Strata Property by Deposit of a Strata Plan Thestratificationprocessbeginswiththedepositinthelandtitleofficeofastrataplan.Astrataplanisadocumentpreparedbyaqualifiedlandsurveyor,whichisre-quiredtocontainspecificdetailsandmeetexactingtechnicalstandards.34Themajorlegaleffectofdepositingastrataplaninthelandtitleofficeistosubdividelandintotwoormorestratalots,withassociatedcommonproperty.35

Kinds of Strata Plans ThereareessentiallytwokindsofstrataplansundertheStrataPropertyAct.Oneiscalledabare-landstrataplan.Itconcernsthesubdivisionofland.36

33. Andhere’sthefirstexceptiontonote:insomecases,itisn’tthelandownerbutratheralessee

underalong-termgroundleasewhoactsastheowner-developer.Theactcallsthesecasesleaseholdstrataplans.Forsimplicity’ssake,thediscussionthatfollowswillfocusonthemuchmorecommoncaseofalandownerdevelopingastratapropertyandwilldownplaytherarerleaseholdstrataplan.

34. SeeStrataPropertyAct,supranote5,s244.

35. Seeibid,s239(1).

36. Seeibid,s1(1)“barelandstrataplan”(“means(a)astrataplanonwhichtheboundariesofthe



Theotherkindofstrataplanisn’tnamedintheact,butit’scommonlycalledabuild-ingorconventionalstrataplan.37Thiskindofstrataplandealswiththesubdivisionofabuilding.Thisisthemorecommonkindofstrataplan.Amongthethingsthatastrataplandoes,oneofthemostimportantistodistinguishbetweenthetwobuildingblocksofastrataproperty:stratalotsandcommonprop-erty.

Strata Lots Astratalotisthelegislation’snamefortheunitinastratapropertythatisindividu-allytitledandowned.Acommonexampleofastratalotisanapartmentinaresiden-tialstrataproperty.Butitisimportanttobearinmindthatnothinginstrata-propertylawrestrictsstratalotstoapartmentsorresidentialuses.Stratalotsmaybetownhouses,shopsusedforcommercialpurposes,industrialplants,recreationalcottages,orparkinglots.Solongastheyareidentifiedassuchonastrataplan,stratalotsmaybealmostanythingwithintheingenuityofanowner-developer.But,thatsaid,theactdoes,inmanyplaces,distinguishbetweenstratalotsbasedontheiruses.Thisdistinctionturnsonwhetherornotthestratalotisusedforresiden-tialpurposes.Residentialstratalotisadefinedterm,meaning“astratalotdesignedorintendedtobeusedprimarilyasaresidence.”38Stratalotsusedforanyotherpurposearereferredtoasnonresidentialstratalots.Whetherastratalotisaresi-dentialstratalotoranonresidentialstratalotcanhaveabearingonhowcertainprovisionsrelatingtoproperty,expenses,andgovernanceareappliedtoit.

stratalotsaredefinedonahorizontalplanebyreferencetosurveymarkersandnotbyreferencetothefloors,wallsorceilingsofabuilding,or(b)anyotherstrataplandefinedbyregulationtobeabarelandstrataplan.”).Regardingparagraph(b),notethattodatenoregulationsonthispointhavebeenadopted.

37. SeeAdrienneMMurray,“TheBasicsofStrataPropertyLaw,”inContinuingLegalEducationSo-cietyofBritishColumbia,ed,StrataProperty—2006Update:MaterialspreparedfortheContinu-ingLegalEducationseminar,StrataPropertyFundamentalsforLawyers,heldinVancouver,B.C.,onOctober20,2006(Vancouver:ContinuingLegalEducationSocietyofBritishColumbia,2006)1.1at1.13;Mangan,supranote4at17;BritishColumbiaStrataPropertyPracticeManual,supranote2at§1.14.

38. Supranote5,s1(1)“residentialstratalot.”SeealsoEastBarriereResortLtdvTheOwners,StrataPlanKAS1819,2017BCCA183.



Common Property, Limited Common Property, and Common Assets Common property Initssimplestterms,commonpropertyiseverythingshownonastrataplanthatisn’tpartofastratalot.Someconcreteexamplesofcommonpropertyincludethingslikehallways,stairwells,lobbies,elevators,parkingstalls,balconies,andpatios.Thevastmajorityofpropertydepictedonstrataplanscanbeanalyzedusingthissimple,clear-cutdichotomyofbeingeitherastratalotorcommonproperty.Buttherealitiesofconstructingmulti-unitbuildingsentailthattherewillalsobesomegreyareasthatcomplicatethispicture.Thesegreyareasgeneratemostofthelegalissuesinthisarea.Theyarediscussedindetailinthenextchapter.39Limited common property It’sobviousfromthenamethatcommonpropertyispropertythat’sheldincom-mon,meaningthatit’ssomethingallthestrata-lotownersshare.40ButtheStrataPropertyActdoesn’tstopthere.Itallows,insomecases,forindividualstrata-lotownersorgroupsofstrata-lotownerstohaveenhancedrightstoaccessandusese-lectitemsofcommonproperty.Themostimportantexampleofanownerhavinganenhancedrighttocommonpropertyisthecategoryoflimitedcommonproperty.Limitedcommonpropertyiscommonpropertythathasbeen“designatedfortheexclusiveuseoftheownersofoneormorestratalots.”41Sometypicalexamplesofthingsthatmightbelimitedcommonpropertyareabalconyforanapartmentinahigh-risetower,apatioforatownhouseorground-floorapartment,andaparkingspaceinaparkinglot.Thenextchaptercontainsmoredetailonthelegalnatureoflimitedcommonprop-ertyandhowitisdesignated.42


40. SeeStrataPropertyAct,supranote5,s66(“Anownerownsthecommonpropertyandcommonassetsofthestratacorporationasatenantincommoninashareequaltotheunitentitlementoftheowner’sstratalotdividedbythetotalunitentitlementofallthestratalots.”).

41. Ibid,s(1)(1)“limitedcommonproperty.”




Common assets Finally,theactalsocharacterizessomepropertyascommonassets.Thedefinitionofcommonassetscontainstwocategories.Thefirstis“personalpropertyheldbyoronbehalfofastratacorporation.”43Examplesofthiscategoryincludeitemsofpropertylikefurnitureinalobbyorexerciseequipmentinagym.Thesecondcategoryis“landheldinthenameoforonbehalfofastratacorporation,thatis(i)notshownonthestrataplan,or(ii)shownasastratalotonthestrataplan.”44Anexampleof(i)isanyoffsitelandownedorheldonbehalfofthestratacorporation.Anexampleof(ii)isacaretaker’ssuiteinaresidentialbuildingwhichisastratalot.

The Strata Corporation Inadditiontosubdividinglandintostratalotsandcommonproperty,depositingastrataplaninthelandtitleoffice“establishes”astratacorporation.45Thisstratacorporationisthemajorcomponentofthesecondessentialelementofastrataproperty(“anadministrativeframeworktoenabletheownerstomanagetheprop-erty”).46Itisthevehiclebywhichstrata-lotownersareabletoadministertheirstra-taproperty.Theactsaysthatthepurposeofastratacorporationistotakeresponsibilityfor“managingandmaintainingthecommonpropertyandcommonassetsofthestratacorporationforthebenefitoftheowners.”47Ownershipofcommonpropertyandcommonassetsisinthehandsofthestrata-lotowners,collectively.48Themember-shipofthestratacorporationismadeupof“theownersofthestratalotsinthestra-taplan.”49Thestratacorporationisthemeansforcoordinatingtheseownerstomakeeffectiveandtimelycollectivedecisions.

43. Supranote5,s1(1)“commonasset.”

44. Ibid,s1(1)“commonasset.”

45. Ibid,s2(1)(a).

46. SeeOntarioLawReformCommission,supranote22at3.

47. Supranote5,s3.

48. Seeibid,s66.Theactdoesn’tallowthelinkbetweenownershipofastratalotandownershipofashareinthecommonpropertytobebroken.Seeibid,s251(2)(“Anownermustnotdealwiththeowner’sshareinthecommonpropertyandcommonassetsofthestratacorporationsepa-ratelyfromtheowner’sstratalotexceptasexpresslyallowedbythisAct.”).

49. Ibid,s2(1)(b).



The Fundamentals of Strata-Corporation Governance Bylaws and rules Astratacorporationisrequiredtohavebylaws.50Bylawsareathird-ordersetoflawstogovernstrataproperties,rankinginprioritybelowtheactanditsregula-tions.51Thatsaid,formanyissues,the“bylaws,morethananyotherdocument,di-recttheconductofowners,tenantsandoccupants”andvisitors.52Bydefault,thelegislationprovidesstratacorporationswithasetofstandardby-laws.53Butstratacorporationsarefreetoamendthesestandardbylawsortocreatetheirownbylaws,solongasthesebylawamendmentsareapprovedbya3/4vote,arefiledinthelandtitleoffice,anddonotconflictwiththeStrataPropertyAct,theStrataPropertyRegulation,oranyotherenactmentorlaw.54Bylawsmayaddressthefollowingtopics:

• “thecontrol,management,maintenance,useandenjoymentofthestratalots,commonpropertyandcommonassetsofthestratacorporation”;55

• “theadministrationofthestratacorporation.”56Unlikebylaws,rulesareoptionalforastratacorporation.Rulesarealsomorelim-itedinscopethanbylaws,astheymayonlygovern“theuse,safetyandconditionof

50. Seeibid,s119(1).

51. Seeibid,s121.

52. Murray,supranote37at1.1.2.

53. Seesupranote5,s120.

54. Seeibid,ss126–28(rulesonbylawamendment),120(1)(filingamendmentsinthelandtitleof-fice),121(unenforceablebylaws).Onthelastpoint,inadditiontobeingunenforceableduetoaconflictwithanenactmentoralaw,abylawisunenforceabletotheextentit“destroysormodi-fies”oneoftheeasementsforsupport,services,orsheltercreatedundertheactor“prohibitsorrestrictstherightofanownerofastratalottofreelysell,lease,mortgageorotherwisedisposeofthestratalotoraninterestinthestratalot”(ibid,s121(1)(b)–(c)).Ofcourse,thereareex-ceptionstothelastpoint,whichallowastratacorporationtoputinplacerentalrestrictions,re-strictionsonthesaleofastratalot,oragerestrictions,allofwhichmustconformstrictlytode-tailedrequirementscontainedintheact(seeibid,s121(2)).

55. Ibid,s119(2).

56. Ibid,s119(2).



thecommonpropertyandcommonassets.”57Rulescan’tbeusedtogovernstratalotsortoaddresstheadministrationofastratacorporation.Annual general meetings and special general meetings Theactrequiresmanystrata-corporationdecisionstobemadebytheownerscollec-tively.Thesedecisionsaretypicallyidentifiedasonescallingfora“resolution”asev-idenceofthedecision.Resolutionsareconsideredandeitheradoptedorrejectedatgeneralmeetingsofthestratacorporation.Stratacorporationsarerequiredtohaveatleastonegeneralmeetingayear—called,appropriately,anannualgeneralmeeting.58Thestandardbylawscontaintheorderofbusinessfortheannualgeneralmeeting’sagenda.59Stratacorporationsmayalsohaveanynumberofspecialgeneralmeetings.60Theactcontainsadetailedandexactingsetofprovisionsonthecallingandconductofgeneralmeetings.61Forthepurposesofthisdiscussion,it’sonlynecessarytotakesomenoticeofhowtheactdealswithvoting.Votesareultimatelyhowdecisionsatgeneralmeetingsgetmade.Thebasicpositionismajorityrule—whattheactcallsmajorityvote.62Aresolutionpassedbyamajorityvoteisonethatwasapprovedbymorethanhalfofthevotescastbyowners—ortheirproxyholders,ifthereareany—atthegeneralmeeting.63Inotherwords,the

57. Seeibid,s125.

58. Seeibid,s40.Thereisanexceptiontothisrequirement:ifalleligiblevotersagree,theymayconsentinwritingtothemainbusinessofthemeeting(namelypassingabudgetandelectingastratacouncil)andmaywaive,eachbyawrittendocument,theholdingofanannualgeneralmeeting(seeibid,s41).

59. Seeibid,ScheduleofStandardBylaws,s28.

60. Seeibid,s42.

61. Seeibid,ss45–50,53–58.SeealsoReportonTerminatingaStrata,supranote11at63–71;GerryFanaken,UnderstandingtheCondominiumConcept:AnInsightfulGuidetotheStrataPropertyAct(Coquitlam,BC:PaigeCondominiumServices,2013)at36–48,52–55;Mangan,supranote4at101–114;BritishColumbiaStrataPropertyPracticeManual,supranote2at§§6.36–6.74.

62. Seesupranote5,s1(1)“majorityvote”(“meansavoteinfavourofaresolutionbymorethan1/2ofthevotescastbyeligiblevoterswhoarepresentinpersonorbyproxyatthetimethevoteistakenandwhohavenotabstainedfromvoting”).

63. Theactdoesn’tactuallyrefertoownersvoting;itstermiseligiblevoters.Thistermreflectstwoconcerns:(1)sometimesanowner’svoteforastratalotmaybeexercisedbysomeoneotherthananowner,suchasatenant(seeibid,s54(b)),amortgagee(seeibid,s54(c)),aparent,guardian,orotherrepresentative(seeibid,s55),oracourt-appointedvoter(seeibid,s58);and



questionisdecidedbythemajorityofowners(andproxyholders)presentatthemeetingandnotabstainingfromvoting.Somedecisionsrequireapprovalbymorethanamajorityofvoters.Themostcom-monformofthiskindofapprovaliswhattheactcallsa3/4vote.64Aresolutionispassedbya3/4votewhenatleast75percentofthevotescastatageneralmeetingareinfavourofit.65Incertainexceptionalcases,theactdemandsthataresolutionbesupportedbyaunanimousvoteinorderforittobeapproved.66Aresolutiononlymeetsthisthresholdwhenallstrata-lotownersvoteforit.So,unlikeresolutionspassedbyamajorityvoteora3/4vote,aresolutioncan’tbepassedbyaunanimousvoteifitissupportedjustbyalltheownerswhoturnuptothegeneralmeetingandvoteforitifthereareotherownerswhodon’tattendthemeeting(inpersonorbyproxy)orwhoabstainfromvoting.Finally,ifthevoteisonwhattheactcallsa“winding-upresolution”67(toterminatethestrata—thatis,thecancelthestrataplanandwindupthestratacorporationunderpart16),68thenitmaybepassedbyan80-percentvote.69

(2)insomecases,anownermaylosetherighttovoteiftheownerisindefaultofcertainpay-mentsowingtothestratacorporationandthestratacorporationistherebyentitledtofilealienagainstthatowner’sstratalot(seeibid,ss53(2),116(1)).Theseareallexceptionalcases,soforbrevity’ssakethetextwillsimplyrefertoownersvoting.

64. Seeibid,s1(1)“3/4vote”(“meansavoteinfavourofaresolutionbyatleast3/4ofthevotescastbyeligiblevoterswhoarepresentinpersonorbyproxyatthetimethevoteistakenandwhohavenotabstainedfromvoting”).

65. Aspecialrulecomesintoplayif“aresolutionrequiredtobepassedbya3/4voteispassedatanannualorspecialgeneralmeetingbypersonsholdinglessthan50%ofthestratacorporation’svotes”(ibid,s51(1)).Underthisrule,“[w]ithintheoneweekfollowingthevote,personsholdingatleast25%ofthestratacorporation’svotesmay,bywrittendemand,requirethatthestratacorporationholdaspecialgeneralmeetingtoreconsidertheresolution”(ibid,s51(3)).Ifthatspecialgeneralmeetingattractsaquorumofowners,andiftheresolutionisnotpassedagainbya3/4voteatthatmeeting,thenthestratacorporationmaynotimplementtheresolution(seeibid,s51(10)).

66. Seeibid,s1(1)“unanimousvote”(“meansavoteinfavourofaresolutionbyallthevotesofalltheeligiblevoters”).Transactionsthatmustbeauthorizedbyaresolutionpassedbyaunani-mousvotearethemajorfocusofchapter5,whichdealswithfundamentalchanges.See,below,at81–130.

67. Ibid,s1(1)“winding-upresolution”(“meansaresolutionreferredtoin(a)section272(1),or(b)section277(1).”).

68. Seeibid,ss272–89.

69. Seeibid,s1(1)“80%vote”(“meansavoteinfavourofaresolutionbyatleast80%ofthevotesofalltheeligiblevoters”).



The strata council Astratacorporationmusthaveastratacouncil.70Thestratacounciliselectedateachannualgeneralmeeting,withitsmembersusuallycomingfromthestrata-lotowners.71Thestratacouncilhasbeendescribedasbeing“effectivelyaboardofdirectors”72and“somewhatanalogoustoafourthlevelofgovernment.”73Thesedescriptionsre-flecttheact’sbasicposition,whichisthatthe“powersanddutiesofthestratacor-porationmustbeexercisedandperformedbya[strata]council.”74Asaruleofthumb,thismeansthatthestratacouncilhastheauthoritytomakedecisionsre-spectingthestratacorporation,exceptforthosedecisionswheretheactcallsforaresolutionatageneralmeeting.75Budgets and funds Theactrequiresthestratacorporationto“establish,”andthestrata-lotownersto“contribute,bymeansofstratafees,”tothefollowingtwofunds:

• “anoperatingfundforcommonexpensesthat(i)usuallyoccureitheronceayearormoreoftenthanonceayear,or(ii)arenecessarytoobtainadepre-ciationreport”;76and

70. SeeStrataPropertyAct,ibid,s25.

71. Seeibid,s28(1).Whilestrata-councilmembersareinfactdrawnoverwhelminglyfromtheranksofowners,thelegislationactuallyallowsthreegroupspresumptivelytobestrata-councilmembers:(1)owners;(2)individualswhorepresentcorporateowners;and(3)tenantswhohavebeenassignedanowner’srighttovote(seeibid,s28(1)).Further,theactallowsstratacorporationstoadoptbylawsthatallowotherclassesofpeopletobestrata-councilmembers(seeibid,s28(2)).

72. Mangan,supranote4at39.

73. Fanaken,supranote61at21.

74. Supranote5,s4.

75. SeeMurray,supranote37at1.1.4(“WheretheActdoesnotreferenceavotebytheowners...theactivityordutymaybeperformedbythestratacouncilwithoutinputfromtheowners.However,wheretheActrequiresavoteoftheowners,thedecisiontobemadeisnotoneforthestratacouncilaloneandcanonlybemadewiththeapprovaloftheownersbasedonthevotingthresholdsetoutinthatsection.”).

76. Supranote5,s92(a).



• “acontingencyreservefundforcommonexpensesthatusuallyoccurlessof-tenthanonceayearorthatdonotusuallyoccur.”77

Theactaddressestheestablishmentofthesefunds,raisingoftheircontributions,expendituresfromthem,andaccountingforthoseexpenditures.78Atthecentreofthesefunctionsisthestratacorporation’sannualbudget.79Amongotherthings,theannualbudgetmustcontain“theestimatedexpendituresoutoftheoperatingfund,itemizedbycategoryofexpenditure;thetotalofallcontributionstotheoperatingfund;thetotalofallcontributionstothecontingencyreservefund;eachstratalot’smonthlycontributiontotheoperatingfund;[and]eachstratalot’smonthlycontri-butiontothecontingencyreservefund.”80

Common Expenses Manyofthedecisionsthatastratacorporationhastomakeconcernspendingmon-eytopayforexpenses.Theactmakesthestrata-lotownerscollectivelyresponsibleforwhatitcallscommonexpenses,whichitdefinesasexpenses

• relatingtothecommonpropertyandcommonassetsofthestratacorporation,or

• requiredtomeetanyotherpurposeorobligationofthestratacorporation.81Commonexpensesoftenrelatetothefirstbulletpointandare,ineffect,theflipsideofowningpropertyincommon.Thestratacorporationhasalegalobligationto“re-pairandmaintaincommonpropertyandcommonassets.”82Althoughthestratacorporationisresponsibleforcommonexpenses,83payingforrepairs—asforallcommonexpenses—ultimatelycomesfromcontributionsfromstrata-lotowners.Howthesecontributionsaredeterminedleadstoconsiderationofoneoftheact’sfoundationalconcepts,unitentitlement.

77. Ibid,s92(b).

78. Seeibid,ss92,93,95–100,103–109.

79. Seeibid,s103.

80. StrataPropertyRegulation,supranote6,s6.6(1)(c)–(g).

81. Supranote5,s1(1)“commonexpenses.”

82. Ibid,s72(1).See,below,at21–24(furtherdiscussionofthedutytorepairandmaintainproper-ty).

83. Seesupranote5,s91.



Unit Entitlement What is unit entitlement and how is it used? Atbottom,unitentitlementisanumber.Eachstratalotinastratapropertyisas-signeditsownunit-entitlementnumber.Theactusesunitentitlementinawaythattiesthisconceptintooneofthedefiningcharacteristicsofastrata.Thisdefiningcharacteristicistheuniquestrataproperty–ownershipmodel,whichcombinesindividualownershipofstratalotswithsharedownership,amongstrata-lotowners,ofastrata’scommonpropertyandcommonassets,andsharedresponsibilityforthedebtsandliabilitiesofthestratacorpora-tion.Specifically,unitentitlementisusedin“calculations”that“determine”eachstratalot’sshareof:

• commonproperty;

• commonassets;

• commonexpenses;and

• liabilitiesofthestratacorporation.84How is unit entitlement determined? Theacthasadetailedsetofrulesonhowtodeterminetheunitentitlementofastra-talot.Whichrulesapplyinagivencasedependson(1)theuseofthestratalotand(2)thekindofstrataplanatissue.Theactdistinguishesbetweenresidentialandnonresidentialuses,andcontainsaspecialruleformixed-usestratas.Themethodsfordeterminingtheunitentitlementofastratalotare:

• forresidentialstratalots:oneof(a)thehabitableareaofthestratalot,(b)awholenumberthatisthesameforallresidentialstratalots,or(c)anumberthat“allocatesafairportionofthecommonexpensestotheowner

84. Ibid,s1(1).SomejurisdictionsgoevenfurtherthanBritishColumbiaanduseunitentitlement

todetermineastratalot’svotingrightsanditsshareofresidualpropertyaftertermination.



ofthestratalot,”intheopinionofthesuperintendentofrealestate,whomustapproveanyuseofoption(c);85

• fornonresidentialstratalots:oneof(a)thetotalareaofthestratalot,(b)awholenumberthatisthesameforallnonresidentialstratalots,or(c)anumberthat“allocatesafairportionofthecommonexpensestotheownerofthestratalot,”intheopinionofthesuperintendentofrealestate,whomustapproveanyuseofoption(c);86

• formixed-usestratas:“[i]fthestrataplanconsistsofbothresidentialandnonresidentialstratalots,”thenunitentitlement“mustbeapprovedbythesuperintendentasfairlydistributingthecommonexpensesbetweentheownersoftheresidentialstratalotsandtheownersofthenonresidentialstratalots.”87

Forresidentialandnonresidentialstratalots,inmostcasesunitentitlementisde-terminedusingoption(a).Ineffect,thismeansthatthesizeofthestratalotdeter-minesitsunitentitlement.Itisslightlymorecomplicatedthanthat,becausetheactreliesontwodifferentstandardsfordeterminingthesizeofastratalot.Forresidentialstratalots,thesizeofastratalotisdeterminedbymeasuringitshab-itablearea.Thisisadefinedterm,88whicheffectivelylimitsunitentitlementtolivingareasinastratalot,excludingthingslike“patios,balconies,garages,parkingstallsorstorageareasotherthanclosetspace.”89Fornonresidentialstratalots,sizeisdeter-minedbythetotalareaofthestratalot.90Inbothcases,option(a)requiresunitentitlementtobe“determinedbyaBritishCo-lumbialandsurveyor.”91

85. Ibid,s246(3)(a).

86. Ibid,s246(3)(b).

87. Ibid,s246(5).

88. Seeibid,s246(4).SeealsoBarrettvTheOwners,StrataPlanLMS3265,2017BCCA414[Barrett].

89. StrataPropertyRegulation,supranote6,s14.2.

90. Totalareaisn’tadefinedterm;itsimplytakesitseverydaymeaning.SeeBritishColumbiaStrataPropertyPracticeManual,supranote2at§2.39(“‘totalarea’includesallofthoseareaslistedasexcludedfrom‘habitablearea’ofaresidentialstratalot”).

91. Supranote5,s246(3)(a),(b).



Theserulesonlyapplywhenthestrataplanisaconventional(building)strataplan.Forbare-landstrataplans,aspecialrulecomesintoplay.92When is unit entitlement determined and where is it found? Theunitentitlementofastratalotmustbedeterminedattheoutsetofthestratifica-tionprocess.Theactrequiresthe“personapplyingtodepositastrataplan”toin-cludetheunitentitlementsofthestratalotsinthestrataplan.93Theseunit-entitlementnumbersaregroupedtogetherasascheduletothestrataplan,calledtheScheduleofUnitEntitlement.94Thisscheduleisthedefinitivesourceoftheunitentitlementofastratalotinthatstrataplan.

The Duty to Repair and Maintain Property Strata-propertylawhasadetailedframeworkforallocatingresponsibilitytorepairandmaintainproperty.Thissystemdependsontheinterplayoflegislation,regula-tions,andstrata-corporationbylaws.Common property and common assets Eventhoughthestrata-lotownerscollectivelyownthecommonpropertyandcom-monassets,theStrataPropertyActmakesthestratacorporationresponsiblefortheirrepairandmaintenance.Astheactprovides,“thestratacorporationmustre-pairandmaintaincommonpropertyandcommonassets.”95Theactgoesontosetouttwoexceptionstothisbasicduty.96Theseexceptionsallowastratacorporationtomakeastrata-lotownerresponsibleforthemaintenanceofcommonproperty.Inbothcases,theactrequiresthestratacorporationtoadoptabylawthatmakestheownerresponsibleforrepairandmaintenancetothecommonproperty.

92. Ibid,s246(6)(“Theunitentitlementofastratalotinabarelandstrataplanmustbe(a)awhole

numberthatisthesameforallofthestratalotsinthestrataplan,or(b)anumberthatisap-provedbythesuperintendentandthatinthesuperintendent’sopinionallocatesafairportionofthecommonexpensestotheownerofthestratalot.”).

93. Ibid,s246(2).

94. Seeibid,s246(2).Thescheduleisaprescribedform.SeeStrataPropertyRegulation,supranote6,FormV.

95. Supranote5,s72(1).

96. Seeibid,s72(2).



Thefirstcasedealswith“limitedcommonpropertythattheownerhasarighttouse.”97Thestandardbylawsthatapplybydefaulttoastratacorporationgiveanex-ampleofhowresponsibilitytorepairandmaintainlimitedcommonpropertymaybedividedbetweenthestratacorporationandastrata-lotownerwhohastherighttousethelimitedcommonproperty.Thestandardbylawsprovide,asageneralproposition,that“[a]nownerwhohastheuseoflimitedcommonpropertymustre-pairandmaintainit,exceptforrepairandmaintenancethatistheresponsibilityofthestratacorporationunderthesebylaws.”98Thebylawsgoontodealwiththeexception,byprovidingthatthestratacorporationmustrepairandmaintainlimitedcommonpropertyintwodefinedcircumstances.Thefirstcircumstanceconcernsthefrequencyoftherepairormaintenance.Ifit’srepairsormaintenancethat“intheordinarycourseofeventsoccurslessoftenthanonceayear,”thenit’sthestratacorporation’sresponsibilitytocarryitout.99Thesecondcircumstanceconcernsthetypeofpropertythatmustberepairedormain-tained.Thestratacorporationmustrepairandmaintainlimitedcommonpropertyinallcases(“nomatterhowoftentherepairormaintenanceordinarilyoccurs”)ifthepropertyisanyofthefollowing:

• thestructureofabuilding;

• theexteriorofabuilding;

• chimneys,stairs,balconiesandotherthingsattachedtotheexteriorofabuilding;

• doors,windowsandskylightsontheexteriorofabuildingorthatfrontonthecom-monproperty;

• fences,railingsandsimilarstructuresthatenclosepatios,balconiesandyards.100Becauset

ritish olumbia - british columbia law institute · (realtor, re/max real estate services) tim...

Documents