chapter 4 strata Flashcards
With respect to bylaws and rules in a strata development, which of the following statements is TRUE?
- Bylaws are passed by special resolution of the strata council.
- Bylaws provide for the control and management of the strata lots and common property.
- 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.
- All of the above
correct 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.
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?
- Both Gretel and Hansel have lost their right to vote by granting the mortgage to Grimm; only Grimm will have the right to vote.
- 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.
- 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.
- 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.
Correct 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 their 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 their 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.
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?
- What is the amount in the strata corporation’s contingency reserve fund?
- Are there any legal proceedings pending against the strata corporation?
- Are there any judgments registered against the strata lot Naomi is thinking of purchasing?
- Are the expenses of the strata corporation for the current fiscal year expected to exceed the expenses budgeted?
Correct 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.
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:
- the bylaw is not valid because it was not passed by the strata council.
- the bylaw is not valid because bylaws passed by the strata corporation may only regulate the operation of the common property.
- the bylaw is void because it infringes on an owner’s use of their strata lot.
- the bylaw is valid.
Correct 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.
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?
- If he could obtain support of 75% of the owners, he could have the bylaw amended.
- 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.
- He could seek to have an arbitrator appointed in accordance with the Strata Property Act.
- All of the above courses of action are available to Henry.
Correct 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.
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?
- $421.99
- $5,063.94
- $475.50
- $347.36
Correct 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.
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?
- The strata council may pay the $2,000 window cleaning fee without any further consent.
- 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.
- 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.
- If this is a common property expense, the strata council has complete authority to any amount.
Correct 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.
Which one of the following actions does NOT generally require a vote by the strata corporation?
- An amendment to the bylaws
- The decision to waive the requirement to obtain a depreciation report.
- An amendment to the rules governing common property
- A designation of limited common property by the owners
Correct Answer: 3
Only Option (3) is a matter for the strata council, which may handle it by a simple majority. All other acts require a special resolution of the strata corporation.
The Owners, Strata Plan, 1234 (the “Strata Corporation”) is a strata corporation based out of Courtenay, British Columbia. The Strata Corporation is getting ready for its FIRST annual general meeting (“AGM”). One key topic up for discussion is the Strata Corporation’s contribution to its contingency reserve fund (the “CRF”). Which of the following is TRUE regarding the Strata Corporation’s required contributions to its CRF at the time of the first AGM?
- The Strata Corporation is not required to contribute to the CRF at the first AGM, given that the developer already paid a lump sum to the CRF.
- The Strata Corporation must bring the CRF to at least 50% of the total amount budgeted for the annual operating fund.
- The Strata Corporation is not required to contribute to the CRF at the first AGM, given that the Strata Property Act does not mandate the Strata Corporation to contribute to the CRF until the fifth AGM.
- The Strata Corporation must contribute a minimum of 10% of the total amount budgeted for the annual operating fund to the CRF.
Correct Answer: 4
Option (4) is correct because it is a true statement. At each AGM, including the first AGM, the Strata Corporation must contribute a minimum of 10% of the total amount budgeted for the annual operating fund to the CRF. For this reason, Options (1), (2), and (3) are incorrect.
