Strata property

How BC law treats it

The Strata Property Act, which replaced the former Condominium Act on July 1, 2000, governs strata property in BC, with detail in the Strata Property Regulation. A strata plan deposited in the land title office divides land and buildings into strata lots and common property. Each strata lot has its own title and can be sold, leased or mortgaged separately. Common property, such as lobbies, roofs and parking structures, is held by the owners as tenants in common in shares based on unit entitlement. The strata corporation created on deposit of the plan manages the property. Owners vote at general meetings on budgets, special levies and bylaw changes, and the strata council handles day to day decisions. Strata lots can be residential or non-residential, and in mixed use buildings the corporation can create sections so that commercial owners control and pay for matters that affect only them. A developer marketing new strata lots must generally file and deliver a disclosure statement under the Real Estate Development Marketing Act, and buyers have a right to rescind for a short period after receiving it. Many strata disputes, including bylaw enforcement and repair obligations, are decided by the Civil Resolution Tribunal.

What it means for your business

Commercial strata units are a common way for BC businesses to own their premises. Ownership comes with shared costs, bylaws that restrict use, and exposure to special levies for building repairs. Investors and owner occupiers should review the strata plan, bylaws, budget, depreciation report and minutes before committing, and check whether the commercial lots form their own section with separate decision making. Example: A Burnaby engineering firm buys two adjoining commercial strata lots in a mixed use building. Because the commercial lots form a separate section, the firm votes with the other commercial owners on the section's budget and is not charged for the residential tower's amenity repairs.

Risks and common mistakes

Calling a BC condominium transaction a purchase under the Condominium Act, which was repealed in 2000. Assuming parking stalls and storage lockers are part of the strata lot when they are often limited common property or assigned by the strata. Failing to check the depreciation report and contingency reserve fund before buying an older building. Ignoring whether a mixed use building has separate sections, which affects who pays for what. Missing the rescission period after receiving a developer's disclosure statement on a presale purchase.