2.3 - Strata Properties & Co-Ops in BC

Question 1

T or F: every strata plan is self-enforcing

Answer 1

T

Question 2

what is a strata plan?

Answer 2

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

Question 3

what is a bare land strata plan?

Answer 3

subdivided land (no building yet)

Question 4

what is a strata corporation?

Answer 4

formed by the deposit of a strata plan whose members are the owners of the SLs in the strata plan

Question 5

what are the 5 duties of the strata corporation?

Answer 5

1. manage common property
2. repair and maintain common property
3. insure common assets
4. keep records
5. establish funds (contingency and operating)

Question 6

what is unit entitlement?

Answer 6

the figure used to calculate a SL owner’s contribution to the common expenses

Question 7

what are purchaser’s interests for SLs and common property?

Answer 7

fee simple for SL
tenants-in-common for common property

Question 8

how do property taxes work in strata developments?

Answer 8

each SL owner pays own property taxes (unit/lot) + share of common property taxes

Question 9

who exercises exclusive control over common property?

Answer 9

Strata corporation

Question 10

what is limited common property (example)?

Answer 10

common property designated for the EXCLUSIVE use of the owners of 1 or more SLs (parking)

Question 11

what is short-term exclusive use (example)?

Answer 11

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)

Question 12

what are the 3 funds in a strata?

Answer 12

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)

Question 13

how much does the developer contribute to contingency reserve fund (minimum)?

Answer 13

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

Question 14

how can a special levy be raised?

Answer 14

3/4 or unanimous vote

Question 15

what is the strata council?

Answer 15

executive body which carries out the activities needed so the strata corp fulfills its duty under the law

Question 16

when is the first annual meeting held?

Answer 16

when 50% + 1 SLs are moved in

Question 17

what is a section (strata)?

Answer 17

a mini strata corp, comprised of strata lots that share similar characteristics

Question 18

what is a certificate of payment (strata)?

Answer 18

a document that informs a buyer of a SL whether there is any money owing to the strata corporation for that SL

Question 19

how big must the share in strata be to call a special general meeting?

Answer 19

20%

Question 20

how many days of written notice must be given in advance of each general meeting?

Answer 20

20 days

Question 21

what are the 2 types of authorized unapproved expenditures in the operating fund?

Answer 21

1. bylaws allowing strata to spend up to an amount (usually the lesser of: 5% of operating fund contribution, OR $2,000)
2. emergency

Question 22

can strata corporation enforce bylaws/rules?

Answer 22

yes IF its filed in land title office

Question 23

can strata corporation prohibit rental of units?

Answer 23

yes

Question 24

can strata corp sue/be sued?

Answer 24

yes

Question 25

what can the strata corp register a lien for?

Answer 25

unpaid strata fees - not fines

Question 26

what are the 2 forms that purchaser’s can obtain strata corporations from?

Answer 26

information certificate (form B)
certificate of payment (form F)

Question 27

what is an information certificate (strata)?

Answer 27

all the strata info - fees, amount owing, contingency reserve amounts, parking stalls, depreciation report, rules

Question 28

what are depreciation reports?

Answer 28

strata reports that estimate the repair and replacement cost for major items in the strata corporation and the expected life of those items

Question 29

how much notice is needed to cancel a strata management contract?

Answer 29

2 months

Question 30

can an owner file a lien against the strata corporation?

Answer 30

no

Question 31

can an owner withhold payment of strata fees?

Answer 31

no

Question 32

what are the main differences between bylaws and rules in a strata?

Answer 32

bylaws are more formal than rules (rules are optional)
bylaws can regulate the use of strata lots, rules can’t

Question 33

can bylaws restrict rentals and age restrictions?

Answer 33

yes

Question 34

what are 2 exeptions from rental restrictions?

Answer 34

family members (spouse, parent, child)
hardship

Question 35

are co-ops fee simple interest?

Answer 35

no they are shares

Question 36

what is easier to sell - strata or coop?

Answer 36

strata because in coop board of directors must approve a prospective buyers

Question 37

does residential tenancy act apply to strata or coops?

Answer 37

strata (but tenants renting from coop owners can)

Question 38

what are coops governed by?

Answer 38

shareholders agreement & cooperative association act

Question 39

are disclosure statements required for strata and coops?

Answer 39

yes

Question 40

if a rental building is converted, what happens to current tenants?

Answer 40

they are covered by RTA

Question 41

who must developer get permission from to convert building?

Answer 41

municipal council

Question 42

is the potential increase in real property taxes considered when deciding to convert a rental building?

Answer 42

no