Assignment 4 Flashcards
1
Q
- John has a fixed term tenancy in Bill’s building that expires on July 31st. Bill has decided that he wants to renovate the suite and that it must be vacated in order for him to do so. John pays his rent on the first of the month. On March 20th, Bill gives John notice of the end of the tenancy agreement pursuant to the Residential Tenancy Act. What is the earliest date on which John must vacate?
(1) March 31st
(2) April 30th
(3) May 31st
(4) July 31st
A
- Answer: 4
The Residential Tenancy Act permits the landlord to terminate a tenancy in circumstances where the landlord wants to use the property. Under this provision the notice period must be at least 2 months. However, in the circumstances of a fixed term tenancy, the notice will be effective on the expiry date of the term.
2
Q
- A tenant has been renting a basement apartment from the landlord for over two years on a regular month to month periodic tenancy, without any rent increases. The tenant has received three months’ written notice from his landlord that the rent will be increased from $1600 to $1625 per month. The tenant knows that similar basement suites in the neighbourhood are renting for only $1500, and he thinks that the rent increase is the landlord’s way of trying to get him to move out of the house. He is contemplating terminating the tenancy in order to find something cheaper, but before giving his notice to the landlord, he asks your opinion. You correctly advise him that:
(1) for periodic tenancies, the Residential Tenancy Act requires four months’ written notice for a rent increase. Accordingly, the rent increase is not effective.
(2) provided the increase is not more than the change in the Consumer Price Index (CPI) over the past year plus 2%, the increase is allowable, and he has no right to dispute the increase.
(3) in periodic tenancies, the Residential Tenancy Act requires that the notice for rent increases be reasonable. As such, one month’s notice would likely have been sufficient.
(4) the Residential Tenancy Act requires all rent increases to be justifiable. Because similar suites in the neighbourhood rent for significantly less, this rent increase will likely not be enforceable.
A
- Answer: 2
Rent increases in residential periodic tenancies are regulated by Part 3 of the Residential Tenancy Act. Part 3 provides that rent can be increased any time the premises are rented to a new tenant, but that a landlord may also increase the rent if at least 12 months have passed since an existing tenant’s last rent increase, or since the tenant started to rent the premises. At least 3 months’ written notice of a rent increase is required. Landlords may always increase rents on an annual basis up to an amount equal to the CPI plus 2%, without having to justify the increase.
3
Q
- With respect to bylaws and rules in a strata development, which of the following statements is TRUE?
(1) Bylaws are passed by special resolution of the strata council.
(2) Bylaws provide for the control and management of the strata lots and common property.
(3) When a bylaw or rule violation relates to the use of a recreational facility that is common property or a common asset, the strata council may require the sale of the owner’s interest in the condominium complex.
(4) All of the above
A
- Answer: 2
Generally speaking, either a 3/4 or a unanimous vote of the strata corporation (not the strata council) at a general meeting is necessary to amend bylaws, depending on the circumstances. When a bylaw or rule violation relates to the use of a recreational facility that is common property or a common asset, the Strata Property Act permits a strata corporation to deny an owner, tenant, occupant or visitor the use of the recreational facility. The strata council cannot require the sale of a strata lot for a bylaw or rule violation.
4
Q
- Gretel and Hansel have decided to jointly purchase a strata lot as their new residence. They choose a brand new two-bedroom suite located in Dessert Village, a strata development that includes such amenities as a gym, tennis courts and saunas. To finance their purchase, Gretel and Hansel grant a mortgage to Grimm, who also owns registered mortgages for 75% of the other strata lots in Dessert Village. Recently, the residents of Dessert Village have been in disagreement with respect to the use of the tennis courts. The strata corporation has called a meeting to determine whether there should be an appointment system for the use of the sports facilities. Gretel thinks that people should have to make a reservation to use the tennis courts; Hansel thinks it should be first come, first served. Which of the following is TRUE?
(1) Both Gretel and Hansel have lost their right to vote by granting the mortgage to Grimm; only Grimm will have the right to vote.
(2) There is only one vote per strata lot; therefore, either Gretel or Hansel may cast a single vote on this matter. Regardless of any provision in the mortgage agreement, Grimm has no right to vote on this issue because it does not affect the security for the mortgage.
(3) Gretel, Hansel and Grimm have one vote between them. If they cannot all agree on how to vote, then the chairperson will discount their vote on this matter.
(4) Grimm has no right to vote because he has not provided at least five days’ written notice to the strata corporation that he will be exercising his voting power. The result is that both Gretel and Hansel will have one vote each.
A
- Answer: 2
No matter how many registered owners there may be, there is only one vote permitted per residential strata lot. The Strata Property Act does allow an owner to confer his or her right to vote on a lender; however, the lender can only exercise that right to vote in respect of such matters as insurance, maintenance, finance or other matters that may affect the mortgage security. In addition, the lender must provide at least three days= written notice of his or her intention to vote. Therefore, Grimm does not have a right to vote on this matter, and Gretel and Hansel must agree on how to vote; otherwise, their vote will not be counted by the chairperson.
5
Q
- Naomi is thinking of purchasing a condominium. She has obtained a copy of the rules and regulations and reviewed the bylaws registered at the land title office. She has more questions about the strata corporation and she asks Tina, the licensee, how she can get this information. Tina suggests that Naomi request an Information Certificate in Form B from the strata corporation. Which of the following questions would NOT be answered by the Information Certificate?
(1) What is the amount in the strata corporation’s contingency reserve fund?
(2) Are there any legal proceedings pending against the strata corporation?
(3) Are there any judgments registered against the strata lot Naomi is thinking of purchasing?
(4) Are the expenses of the strata corporation for the current fiscal year expected to exceed the expenses budgeted?
A
- Answer: 3
The Information Certificate includes details of the maintenance fees payable, the financial profile of the strata corporation, any pending legal proceedings, the amount being held in the contingency reserve fund, and annual budget information. The Land Title Office would have information on any judgments registered against the strata lot being purchased.
6
Q
- Which of the following statements concerning the difference between a lease and a licence is FALSE?
(1) A lease is both a contract and an interest in land, whereas a licence is only a contract.
(2) Both leases and licences always confer an exclusive right to possession of the premises.
(3) A lease runs with the land and can bind third parties, whereas a licence is only binding on the parties to the contract.
(4) While licences and leases may appear to be similar, the legal rights involved are very different.
A
- Answer: 2
A licensee does not enjoy exclusive possession of the premises in question and a licence confers no estate in the land affected.
7
Q
- Dorinda rents a shop in a commercial building owned by Muhammad. She operates a fabric art studio and sells crafts there. Which of the following provisions of Dorinda’s lease would be enforceable?
A. The rent is $1,000 per month and the damage deposit is $3,000.
B. Dorinda agrees not to assign the lease.
C. The landlord may exercise the remedy of distress.
D. The lease term expires at the end of one year, and no notice of termination is required.
(1) A, C, and D only
(2) A, B, and D only
(3) B and D only
(4) All of the above
A
- Answer: 4
With regard to commercial tenancies, there are no legal restrictions on security deposits. A landlord may include in a commercial lease an express provision prohibiting assignments of the lease. Clauses allowing distress and stating that the lease terminates upon expiry without notice of termination are merely restatements of the common law regarding commercial leases and are therefore enforceable.
8
Q
- Which of the following is an allowable rent increase under the Residential Tenancy Act? (Assume $50 is the maximum allowable increase according to the Consumer Price Index plus 2%).
(1) On July 1, Linus lawfully raises Lucy’s rent from $1,000 to $1,050 per month. Five months later, Lucy moves out and Linus rents to Charlie for $1,050. Two months later, Linus gives notice to Charlie of another
$50 per month increase. Charlie objects to the increase.
(2) Linus raises Lucy’s rent by $50 per month; seven months later, he loses his job and gives Lucy three months’ written notice of a further $50 per month increase. Lucy objects to the increase.
(3) On July 1, Linus raises Lucy’s rent from $1,000 to $1,050 per month. Two months later, Lucy is transferred to Campbell River and Linus re-rents to Charlie, but at a monthly rate of $1,200. Charlie knows Lucy only paid $1,050 and objects to the increase.
(4) Lucy has been paying $1,000 per month for the last three months, prior to which she paid $950. Her landlord, Linus has sold the premises to Charlie, who immediately gives Lucy notice of a rent increase to
$1,050 per month effective in two months. Lucy objects to the increase.
A
- Answer: 3
When a change in tenancy occurs, if the rent is not raised at that time, a landlord must wait until the next tenant has occupied the premises for 12 months before collecting a higher rent. Similarly, a landlord can only increase a tenant’s rent if at least 12 months have passed since that tenant’s last rent increase. Also, rent cannot be increased merely because a new landlord buys the premises. However, upon the creation of a new tenancy, the rent can be whatever the market will bear, regardless of the rent level or duration of the previous tenancy in the premises.
9
Q
- Charles was in the habit of playing his stereo too loudly at night after 10:00 p.m. He has received a notice that the strata corporation has a bylaw providing that no strata lot owner may play a stereo in a strata lot after 10:00
p. m. When Charles seeks his lawyer’s advice she correctly states that:
(1) the bylaw is not valid because it was not passed by the strata council.
(2) the bylaw is not valid because bylaws passed by the strata corporation may only regulate the operation of the common property.
(3) the bylaw is void because it infringes on an owner’s use of his or her strata lot.
(4) the bylaw is valid.
A
- Answer: 4
The bylaw is valid. Option (1) is incorrect because the council may only pass rules and regulations governing common property, facilities, or other assets. Option (2) is incorrect because the Strata Property Act allows a strata corporation to pass bylaws relating to the use and enjoyment of strata lots. Option (3) is incorrect because bylaws may affect the owners’ use of their strata lots.
10
Q
- Shannon rents a basement suite from Graham on a month to month periodic tenancy. Eight months ago the rent was lawfully raised to $750. Graham has recently agreed to sell his house to Robert, and in the agreement Robert has stipulated that he intends to occupy the basement area. Robert has requested in writing that Graham give the tenant a notice of the end of the tenancy agreement. Which of the following statements is FALSE?
(1) Graham must provide at least 2 months’ notice to Shannon of the end of the tenancy, but he cannot do this until all conditions precedent in the contract have been satisfied.
(2) Graham may provide notice ending the tenancy to Shannon; however, the effective date can be no earlier than 12 months from the last rental increase.
(3) If Shannon can prove that instead of occupying the basement after his purchase, Robert rented it out to an unrelated tenant, she may be entitled to compensation from Robert in the amount of two months’ rent.
(4) On or before the effective date of the notice, Graham must provide Shannon with the equivalent of $750 as compensation.
A
- Answer: 2
Where a landlord enters into an agreement in good faith to sell an occupied rental unit and the purchaser has indicated in writing that the purchaser or a close family member will be occupying the rental unit, the landlord may give notice of the end of the tenancy agreement to the tenant if all of the conditions precedent in the agreement have been satisfied. The landlord who gives such notice must pay the tenant the equivalent of one month’s rent as compensation on or before the effective date. A tenant is entitled to two months’ rent if the purchaser fails to occupy the rental unit as indicated. The notice period for landlord use of the property is at least two months, regardless of the date of the last rental increase.
11
Q
- Alex leased a shop from Geoffrey for a term of 48 months at an expressed rent of $6,000 per month, commencing January 1, 2000 and terminating on December 31, 2003. On January 1, 2004 Alex paid Geoffrey
$6,000, which Geoffrey accepted. On the first day of the next 8 months Alex paid the rent to Geoffrey who continued to accept it. On September 20 Geoffrey had an offer from Peter to lease Alex’s shop for $6,800 per month. Geoffrey immediately faxed notice to terminate to Alex, effective October 20, 2004. Which of the following statements is/are TRUE?
A. Because this is a commercial periodic tenancy, either party can terminate.
B. On January 1, 2004 a new periodic lease was created by the actions of Geoffrey and Alex.
C. Geoffrey is entitled to terminate the lease because Alex did not increase his rental payments when the lease was renewed.
D. The notice period will be whatever is reasonable in the circumstances.
(1) A, B, and D only
(2) A, B, and C only
(3) C and D only
(4) All of the above
A
- Answer: 1
A periodic tenancy is created by implication where the tenant stays in possession of premises and continues to pay rent after a fixed term lease ends. The resulting periodic tenancy is valid and requires notice of termination regardless of whether the rent increased. Either party may terminate a commercial periodic tenancy by giving reasonable notice.
12
Q
- Henry lives in an entirely residential strata complex and owns a large dog. Under a section of the bylaws, he has been given notice by the strata corporation to remove his dog. Henry has kept the dog in his strata lot since he purchased the lot three years ago. It has never caused any complaint, until now. Henry is the only owner who has an animal. Which of the following courses of action is available to Henry?
(1) If he could obtain support of 75% of the owners, he could have the bylaw amended.
(2) He could apply to a court for an order under section 164 of the Strata Property Act prohibiting the corporation from exercising its powers in this way because it is significantly unfair to him.
(3) He could have an arbitrator appointed.
(4) All of the above courses of action are available to Henry.
A
- Answer: 4
There are a number of remedies available to a disgruntled owner. Henry would be wise to try, as his first step, to have the bylaw changed because arbitration or court proceedings are expensive and may affect his relationship with other owners. However, if he is adamant about keeping his dog, there are remedies beyond negotiation and persuasion.
13
Q
- Bill owns a strata lot. His unit is 2,200 square feet. The other seven units have a combined area of 17,350 square feet. The common property has an area of 4,200 square feet. The annual common expenses are
$45,000. What is Bill’s monthly share of the common expenses?
(1) $421.99
(2) $5,063.94
(3) $475.50
(4) $347.36
A
- Answer: 1
The share of common expenses owed by each strata lot owner is determined by the unit entitlement. This is the percentage of the entire strata lot area (not including the common area) that is owned by a particular owner. In this case, 2,200 divided by (2,200 + 17,350) = 0.112532. Using this figure, the annual share is determined as follows: 0.112532 × $45,000 = $5,063.94. Therefore, the monthly share is: $5,063.94 divided by 12 = $421.99. Please note that numbers are not rounded until the final calculation.
14
Q
- A commercial lease contains the following clause:
The Landlord shall have the right at all reasonable times to inspect or to authorize in writing an agent to inspect the Premises.
Which one of the following correctly describes the reason for including such a clause?
(1) The clause allows the landlord to avoid the notice provisions of the Residential Tenancy Act and ensures access to the property at any time.
(2) Without the clause, a lease would grant the tenant exclusive possession of the property, with a legal right to exclude even the landlord from the property.
(3) The clause is included to allow a real estate agent to inspect the premises for the purposes of writing a listing contract.
(4) The clause allows a hotel landlord to enter a hotel tenant’s room without the tenant’s permission to provide cleaning services.
A
- Answer: 2
A lease grants exclusive possession of a piece of property and conveys an interest in the land such that a tenant has a legal right against anyone who interferes with his or her enjoyment of that property, including against the landlord. An inspection clause is often included in commercial leases to provide the landlord the right to inspect the property. The Residential Tenancy Act does not apply to commercial leases and the right to enter clause does not provide a real estate agent any special rights. Hotel tenancies are residential and are not commercial leases.
15
Q
- Strata Corporation VRX123 has adopted the standard bylaws set out in the Strata Property Act. Assume the annual total contribution to the operating fund is $50,000.00. In the annual budget, an expenditure of $2,000 for window cleaning has been authorized. Which of the following statements is TRUE?
(1) The strata council may pay the $2,000 window cleaning fee without any further consent.
(2) Because the fee is higher than $500, the strata council will need to call a meeting of the strata corporation and obtain approval by special resolution.
(3) Under the Standard Bylaws, a strata council may pay any amount up to $2,500 without permission from the corporation, whether or not it is contained in the budget.
(4) If this is a common property expense, the strata council has complete authority to any amount.
A
- Answer: 1
Where an item is in the annual budget, it has already been approved by the strata corporation and, therefore, the council may pay the amounts as they come due. If an item is not in the budget, the council may still pay it if it does not exceed $2,000 or is 5% or less of the total annual contribution to the operating fund, whichever is less. For amounts exceeding $2,000 that are not in the budget, the council may only pay them if a special resolution of the strata corporation is passed, a bylaw has been passed authorizing the expenditure, or if an emergency arises.
