Chapter 7 Strata Corporation

Question 1

For purposes of assessment and taxation:

(1) the strata development is assessed as a whole and each strata lot owner pays taxes in proportion to his value on destruction.
(2) each strata lot is assessed and taxed separately from the common areas which are assessed and taxed to the strata corporation.
(3) the strata development is assessed as a whole and each strata lot owner pays taxes in accordance with his unit entitlement.
(4) each strata lot, together with the owner’s share in the common property, is deemed to be a separate parcel of land and improvement.

Answer 1

4

Question 2

For purposes of assessment and taxation:

(1) the strata development is assessed as a whole and each strata lot owner pays taxes in proportion to his value on destruction.
(2) each strata lot is assessed and taxed separately from the common areas which are assessed and taxed to the strata corporation.
(3) the strata development is assessed as a whole and each strata lot owner pays taxes in accordance with his unit entitlement.
(4) each strata lot, together with the owner’s share in the common property, is deemed to be a separate parcel of land and improvement.

Answer 2

4

Question 3

A strata lot in British Columbia in an exclusively residential complex is owned by two persons as joint tenants. At every meeting of the strata corporation the owners are:

(1) entitled to a total of one vote.
(2) entitled to the number of votes which is calculated in proportion to their unit entitlement.
(3) individually entitled to one vote each.
(4) entitled to a total of one vote where the matter involves a special resolution, but individually entitled to one vote on all other matters.

Answer 3

1

Question 4

The interest that is acquired by a buyer of a strata lot is:

(1) a fee simple interest only.
(2) a joint tenancy with all of the other strata lot owners.
(3) a fee simple interest in the strata lot and a fee simple interest, as a tenant in common with the other strata lot owners, in the common property.
(4) a share in the strata corporation in proportion to the unit entitlement.

Answer 4

3

Question 5

For purposes of assessment and taxation:

(1) the strata corporation is assessed as a whole.
(2) each strata lot, together with the owner’s share in the common property, is deemed to be a separate parcel of land and improvements.
(3) all strata lots are lumped together.
(4) None of the above are correct.

Answer 5

2

Question 6

Which of the following statements regarding condominiums is TRUE?

(1) Each strata lot is entitled to one vote which is given a proportionate decision making value by the strata council in accordance with the unit entitlement of the particular lot.
(2) A strata corporation for a residential condominium complex which passes a bylaw severely restricting the number of lots which may be leased may restrict any renewals of existing leases until the total number of leased lots in the complex complies with the bylaw.
(3) A bylaw which is passed by a strata corporation cannot be enforced against a strata lot owner unless or until it has been filed in the appropriate land title office.
(4) The owners of the strata lots which are on the top floor of a residential condominium complex also own the airspace above their individual lots; however, the Strata Property Act restricts the use of the airspace to only those uses which are approved by a special resolution of the strata corporation.

Answer 6

3

Question 7

Which one of the following is NOT a remedy available to the owner of a strata lot who is dissatisfied with certain actions of the strata corporation?

(1) The owner may obtain a mandatory injunction.
(2) The owner may file a lien against the strata corporation.
(3) The owner may have an arbitrator appointed.
(4) The owner may apply to the Supreme Court of B.C. for an order requiring the strata corporation to comply with the Strata Property Act.

Answer 7

2

Question 8

which one of the following statements is FALSE?

(1) In an entirely residential condominium complex, a bylaw must be amended by a 3/4 vote of the strata corporation.
(2) If a rule conflicts with a bylaw, the bylaw prevails.
(3) Subject to some exemptions, a bylaw may prohibit the rental of strata lots in the condominium complex.
(4) Assuming the standard bylaws have not been amended, the strata council may pass rules with respect to the safety and cleanliness of individually owned strata lots.

Answer 8

4

Question 9

Who owns the common property of a strata corporation?

(1) The owner-developer of a strata project, as a trustee for the individual strata lot owners.
(2) The strata corporation.
(3) Each individual strata lot owner owns a share of the common property of a strata corporation in the proportions set out in the Schedule of Unit Entitlement.
(4) None of the above.

Answer 9

3

Question 10

Which of the following accurately describes the provisions of the Strata Property Act with respect to the cancellation of management contracts entered into by the strata corporation for the management of the common property?

(1) The contract can be cancelled upon payment of a sum of money.
(2) Either party may give the other two months’ notice without either party to the contract incurring any liability for breach of contract.
(3) Management contracts are binding for their term, and may not be cancelled prior to their expiry date.
(4) The Act prevents the strata corporation from entering into management contracts.

Answer 10

2

Question 11

The interest which is acquired by a buyer of a strata lot is:

(1) a share in the strata corporation in proportion to the unit entitlement.
(2) a joint tenancy with all of the other strata lot owners.
(3) a fee simple interest in the strata lot and a joint tenancy with respect to the common property.
(4) None of the above

Answer 11

4

Question 12

Under the Strata Property Act, strata corporations are obligated to do certain things. Which of the following is NOT a duty the strata corporation is obliged to carry out?

(1) The maintenance of property insurance on the common property.
(2) The creation of an operating fund for common expenses.
(3) The performance of work ordered by a competent public authority in respect of a strata lot.
(4) The establishment of a contingency reserve fund.

Answer 12

3

Question 13

Jane purchased a condominium on the understanding that pets were permitted by the bylaws of the strata corporation. Later, the corporation passed a bylaw prohibiting any owner from keeping any animal on his or her strata lot. When Karl subsequently purchased his lot, he was aware of this new bylaw. The strata council has ordered the removal of Jane’s dog and Karl’s cat from their lots. Which of the following statements is FALSE?

(1) Karl must remove his cat; the bylaw is enforceable against him.
(2) Jane will be grandfathered and will be able to keep her dog.
(3) Pet restrictions are valid under the Strata Property Act.
(4) The Schedule of Standard Bylaws allows an owner one dog or one cat, and therefore Karl and Jane can keep their pets.

Answer 13

4

Question 14

which of the following are statutory remedies available to an owner of a strata lot who is dissatisfied with certain actions or omissions of the strata corporation?

A. An owner may sue the strata corporation.
B. A court may order the appointment of an administrator in extreme cases.
C. An owner may withhold payment of his proportionate share of common expenses.
D. An owner may file a lien against the strata corporation.

(1) A, B, C and D
(2) Only A and C
(3) Only A, B and C
(4) Only A and B

Answer 14

4

Question 15

A strata corporation is permitted by the Strata Property Act to take certain actions. A strata corporation may:

A. control, manage and administer the common property, common facilities or other assets of the corporation for the benefit of all owners.
B. prohibit strata lot owners from selling their lots to non-residents of British Columbia.
C. register a lien for unpaid strata fees.
D. remove a strata lot owner’s right to use recreational facilities on common property.

Which of the above statements represent actions which may be taken by a strata corporation?

(1) Only B
(2) Only A, B and C
(3) Only A, C and D
(4) All of the above are permitted.

Answer 15

3

Question 16

George bought two units in a ten unit condominium project. Within one week of the completion of this purchase some other condominium owners, the Smithe family, were killed in an accident in the jacuzzi whirlpool. Mrs. Smithe was the sole survivor of this family. The pool is located on the common property in which George now owns an interest. Mrs. Smithe is suing the strata corporation and George is concerned about the extent of his liability for any damage award she may receive. Assuming that the strata corporation is found liable to Mrs. Smithe, which of the following statements correctly describes George’s liability?

A. George must pay his proportionate liability for any judgment registered against the common property of the strata corporation.
B. George will owe Mrs. Smithe absolutely nothing as the Strata Property Act contains provisions requiring all strata corporations to obtain and maintain liability insurance to insure against this type of occupiers liability.
C. The Strata Property Act requires the strata corporation to pay out Mrs. Smithe’s judgment from its contingency reserve fund. George will pay only his proportionate share of any amount left unpaid after the reserve fund is used up.
D. Because George has not owned the units for a minimum of two weeks before the accident occurred, he is not responsible to pay any proportionate amount of the judgment.

Which of the above statements correctly describe George’s liability?

(1) Only A is correct.
(2) A and B are correct.
(3) A, B and D are correct.
(4) Only C is correct.

Answer 16

1

Question 17

Which of the following is NOT one of the obligations imposed on a strata corporation under the Strata Property Act?

(1) the obligation to keep the common property in a state of good and serviceable repair
(2) the obligation to maintain liability insurance of no less than $5,000,000 on the strata project
(3) the obligation to establish a contingency reserve fund for unusual or extraordinary expenses
(4) the obligation to establish a fund for payment of administrative expenses of the strata corporation

Answer 17

2

Question 18

when a strata corporation grants an owner or a tenantof a strata lot the permission to exclusively use common property as a short term exclusive use:

1. the permission requires approval by a 3/4 vote at a general meeting of the strata corporation unless the short term exclusive use is to endure for less than 6 months
2. the permmission may be granted by majority vote of the strata of the strata council if the permission does not involve a signifigant change in the use or appearance of the common property
3. the permission is identical to the designation of limited common property for the benefit of a strata lot owner
4. the strata corporation must not grant the permission for more than 1 month

Answer 18

2

Question 19

which of the following is NOT a statutory remedy available to an owner of a strata lot who is dissatisfied with certain actions or omissions of the strata corporation?

1. an owner may sue the strata corporation
2. a court may order the appointment of an administrator in extreme cases
3. an owner may apply for arbitration with the strata corporation
4. a court may issue a judgment against the strata corporation, but not against all owners

Answer 19

4

Question 20

the strata property act does not permit a strata corporation to

1. control, manage and administer the common property, common facilities, or other assets of the corporation for the benefit of all owners
2. register a lien for unpaid strata fees
3. prohibit strata lot owners from selling their lots to non-residents of British Columbia
4. remove strata lot owners’ right to use recreational facilities on common property

Answer 20

3