2.3 - Strata Properties & Co-Ops in BC Flashcards
T or F: every strata plan is self-enforcing
T
what is a strata plan?
shows which parts of project are SLs and what is common property - subdivide the building (already built)
when registered and approved, creates interest in fee simple for each SL
what is a bare land strata plan?
subdivided land (no building yet)
what is a strata corporation?
formed by the deposit of a strata plan whose members are the owners of the SLs in the strata plan
what are the 5 duties of the strata corporation?
- manage common property
- repair and maintain common property
- insure common assets
- keep records
- establish funds (contingency and operating)
what is unit entitlement?
the figure used to calculate a SL owner’s contribution to the common expenses
what are purchaser’s interests for SLs and common property?
fee simple for SL
tenants-in-common for common property
how do property taxes work in strata developments?
each SL owner pays own property taxes (unit/lot) + share of common property taxes
who exercises exclusive control over common property?
Strata corporation
what is limited common property (example)?
common property designated for the EXCLUSIVE use of the owners of 1 or more SLs (parking)
what is short-term exclusive use (example)?
a special privilege granted to owners and tenants to use common property that is not designated limited common property
strata corp must not grant the permission or privilege for more than 1 year
can cancel at any time with reasonable notice
(bike lockers)
what are the 3 funds in a strata?
operating fund (common expenses that happen 1 + times a year)
contingency fund (less common funds that happen less than 1 time a year)
special levies (each owner pays a portion, emergency if the CRF has not enough money)
how much does the developer contribute to contingency reserve fund (minimum)?
the lesser of:
- 10% of estimated operating expenses in interim budget, times the # of years since strata plan was deposited
- 50% of the estimated operating expenses in interim budget
how can a special levy be raised?
3/4 or unanimous vote
what is the strata council?
executive body which carries out the activities needed so the strata corp fulfills its duty under the law
when is the first annual meeting held?
when 50% + 1 SLs are moved in
what is a section (strata)?
a mini strata corp, comprised of strata lots that share similar characteristics
what is a certificate of payment (strata)?
a document that informs a buyer of a SL whether there is any money owing to the strata corporation for that SL
how big must the share in strata be to call a special general meeting?
20%
how many days of written notice must be given in advance of each general meeting?
20 days
what are the 2 types of authorized unapproved expenditures in the operating fund?
- bylaws allowing strata to spend up to an amount (usually the lesser of: 5% of operating fund contribution, OR $2,000)
- emergency
can strata corporation enforce bylaws/rules?
yes IF its filed in land title office
can strata corporation prohibit rental of units?
yes
can strata corp sue/be sued?
yes
