Chapter 6&7 Flashcards
Distinguish between a LEASE and a LICENSE and explain the importance of the distinction.
A LICENSE in BC does not create an interest in land, or create the relationship of landlord and tenant. More importantly, the holder of the license will not benefit from the rights and obligations created by the Residential Tenancy Act and Commercial Tenancy Act.
A LEASE creates an interest in the land, therefore when the land is sold, the lease remains.
Distinguish between a commercial and a residential tenancy.
Commercial tenancies are governed almost completely by the common law and the actual terms of the lease (and to a lesser extent by the Commercial Tenancy Act).
Residential tenancies are almost completely governed by statue law - The Residential Tenancy Act.
STRATA CORPORATION
A legal entity created by the deposit of a strata plan in the land title office.
The corporation’s responsibilities are set out in the Strata Property Act and include the duty to manage, repair, maintain, and insure common property and common assets.
Also has important record keeping responsibilities and must enforce its bylaws and rules.
STRATA COUNCIL
An executive body elected by the strata lot owners to carry out the duties of the strata corporation and oversee its affairs. Generally speaking, only strata lot owners are eligible to sit on the council.
STRATA BYLAWS
Provides for the control, management, maintenance, use, and enjoyment of the strata lots, common property, and common assets of the strata corporation, and for the administration of the strata corporation.
Standard strata bylaws are set forth in the Strata Property Act.
Strata corporations may amend the bylaws, but the bylaw is not enforceable if it violates law.
STRATA RULES
Optional, informal regulations made by strata councils to govern the use, safety, and condition of the common property and common assets.
Rules will have no legal effect if it contravenes the Act, the Human Rights Code or any other law. If a rule conflicts with a bylaw, the bylaw prevails.
UNIT ENTITLEMENT
Allocates ownership of common property. Strata fee is based on this. Also determines the amount of liability at law.
UNIT ENTITLEMENT = SF in strata lot / SF of all strata lots
INTEREST ON DESTRUCTION
If the condo building is destroyed, the owners by special resolution can decide NOT to rebuild.
They become tenants in common of the whole based on the original value placed on each strata lot.
INTEREST ON DESTRUCTION = $ of strata lot / $ of all strata lots
CONTIGENCY FUND
Covers unusual/extraodinary expenese (i.e. roof replacement).
If fund is <25% of annual budget, lesser of annual levy must be 10% of the budget OR the amount to bring CF to 25%.
CO-OPERATIVE CORPORATIONS
Owner has undivided joint ownership interest in land and/or buildings.
Corp. hold title, owners hold shares.
Corp. is the landlord, shareholders are tenants.
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. (Basically everything relating to the strata corporation.)
