RENTAL PM / CHAPTER 6

Question 1

How is a Strata Corporation created?

Answer 1

A strata corporation is automatically created when a developer files a strata plan at the Land Title Office

Question 2

How is a Strata Corporation created?

Answer 2

A strata corporation is automatically created when a developer files a strata plan at the Land Title Office

Question 3

Strata Plans Must Show?
List 6

Answer 3

Strata Plans Must Show:

Unique registration number,

Boundaries of the land,

Building locations,

Schedule of Unit Entitlement,

Schedule of Voting Rights,

Bylaws that are not standard.

Question 4

List 2 Uses of the Unit Entitlement

Answer 4

**Unit Entitlement

It determines each owner’s proportionate, undivided ownership share as a tenant in common of the common property in the strata plan

Secondly, unit entitlement determines the share of the strata corporation’s expenses and liabilities for which each strata lot is responsible**

Question 5

Define Habitable Area

Answer 5

Habitable area = area of the residential strata lot which can be lived in but does not include patios, balconies, parking stalls or storage areas other than closet space

Question 6

Define Common Property

Answer 6

COMMON PROPERTY means

(a) that part of the land and buildings shown on a strata plan that is not part of a strata lot, and

(b) pipes, wires, cables, chutes, ducts and other facilities for the passage or provision of water, sewage, drainage, gas, oil, electricity, telephone, radio, television, garbage, heating and cooling systems, or other similar services, if they are located:

i) within a floor, wall or ceiling that forms a boundary

(A) between a strata lot and another strata lot,

(B) between a strata lot and the common property, or

(C) between a strata lot or common property and another parcel of land, or

ii) wholly or partially within a strata lot, if they are capable of being and intended to be used in connection with the enjoyment of another strata lot or the common property.

Question 7

The owners, as ____________, own the common property, each in the proportion set out in the Schedule of Unit Entitlement.

Answer 7

The owners, as TENANTS IN COMMON, own the common property, each in the proportion set out in the Schedule of Unit Entitlement.

Question 8

There are several ways that a strata corporation can permit an owner to exclusively use common property.

The first method is to designate the area as _______________________.

Alternatively, the strata corporation may agree to permit an owner or tenant to exercise __________________ (also sometimes characterized as a special privilege) over the relevant common property area.

Answer 8

There are several ways that a strata corporation can permit an owner to exclusively use common property.

The first method is to designate the area as limited common property.

Alternatively, the strata corporation may agree to permit an owner or tenant to exercise short term exclusive use (also sometimes characterized as a special privilege) over the relevant common property area.

Question 9

Define Limited Common Property

Answer 9

“limited common property” means common property designated for the exclusive use of the owners of one or more strata lots.

Question 10

TRUE OR FALSE? The LCP designation attaches to a strata lot rather than the registered owner of the strata lot. In other words, the designation “runs with the land”.

Answer 10

TRUE > The LCP designation attaches to a strata lot rather than the registered owner of the strata lot. In other words, the designation “runs with the land”.

Question 11

TRUE OR FALSE?
Every owner who has the right to use LCP must allow the strata corporation reasonable access to the LCP for the strata corporation to perform its duties.

Answer 11

ANSWER:
TRUE

Question 12

TRUE OR FALSE?
A developer can designate common property as LCP on the strata plan when he or she deposits the strata plan at the land title office.

Answer 12

ANSWER: TRUE

Question 13

The key difference between common property and limited common property?

Answer 13

The key difference between common property and limited common property thus lies in who has the right to use the common asset (e.g., the patio, balcony, roof deck or back yard in question).

It’s important to note that regardless if an asset is deemed common or limited common property, in principle the asset would still be collectively owned by all owners of the strata corporation.

Question 14

NOTE ONLY - LIMITED COMMON PROPERTY

Limited Common Property (often abbreviated LCP), represents common property designated for the exclusive use of the owners of one or more strata lots.

The key difference between common property and limited common property thus lies in who has the right to use the common asset (e.g., the patio, balcony, roof deck or back yard in question). It’s important to note that regardless if an asset is deemed common or limited common property, in principle the asset would still be collectively owned by all owners of the strata corporation.

In the case of limited common property, the owner of a particular strata lot is said to have “exclusive benefit of use” over that asset.

An asset that comes with an exclusive benefit of use does come with its drawbacks however. The owner of the limited common property is also typically required to conduct regular maintenance on that asset. That means that all sweeping, cleaning, and other routine, basic maintenance of that asset falls squarely on the shoulders of that one particular owner.

Answer 14

NOTE ONLY - LIMITED COMMON PROPERTY

Limited Common Property (often abbreviated LCP), represents common property designated for the exclusive use of the owners of one or more strata lots.

The key difference between common property and limited common property thus lies in who has the right to use the common asset (e.g., the patio, balcony, roof deck or back yard in question). It’s important to note that regardless if an asset is deemed common or limited common property, in principle the asset would still be collectively owned by all owners of the strata corporation.

In the case of limited common property, the owner of a particular strata lot is said to have “exclusive benefit of use” over that asset.

An asset that comes with an exclusive benefit of use does come with its drawbacks however. The owner of the limited common property is also typically required to conduct regular maintenance on that asset. That means that all sweeping, cleaning, and other routine, basic maintenance of that asset falls squarely on the shoulders of that one particular owner.

Question 15

TRUE OR FALSE?
If the owners decide to amend the strata plan, the Strata Property Act requires a unanimous resolution of the owners at a special or annual general meeting.

Answer 15

ANSWER
TRUE

Question 16

The owners can also designate common property as LCP without amending the strata plan. This requires _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Answer 16

ANSWER: The owners can also designate common property as LCP without amending the strata plan. This requires a 3/4 vote at an annual or special general meeting.

Question 17

The strata corporation may also give an owner or tenant permission to exclusively use common property that is not designated LCP, or to use a common asset.

The Strata Property Act refers to this approach as a _ _ _ _ _ _ _ _ _

Answer 17

The strata corporation may also give an owner or tenant permission to exclusively use common property that is not designated LCP, or to use a common asset.

The Strata Property Act refers to this approach as a short term exclusive use agreement or a special privilege.

Question 18

Common Examples of Short Term Exclusive Use?

Answer 18

For example, in strata plans where parking stalls and storage lockers are common property, strata corporations often use short term exclusive use arrangements to allocate the use of particular stalls and lockers to individual owners and their tenants.

Question 19

TRUE OR FALSE?
Although a strata corporation and a business corporation (often informally called a “company”) are both corporations, a strata corporation is not the same as a company.

Answer 19

ANSWER
TRUE

Question 20

NOTE ONLY
Although a strata corporation and a business corporation (often informally called a “company”) are both corporations, a strata corporation is not the same as a company. In a strata corporation, an individual member’s liability is not limited like it is in a company. In a company, the members, in their capacity as shareholders, are not personally liable when someone obtains a judgment against their company.

Answer 20

NOTE ONLY
Although a strata corporation and a business corporation (often informally called a “company”) are both corporations, a strata corporation is not the same as a company. In a strata corporation, an individual member’s liability is not limited like it is in a company. In a company, the members, in their capacity as shareholders, are not personally liable when someone obtains a judgment against their company.

Question 21

LIST The Strata Corp’s Principal Duties?

Answer 21

The Strata Corporation’s Principal Duties
The strata corporation must manage, repair, maintain and insure the common property and the strata corporation’s common assets. The strata corporation also has important record keeping responsibilities and must enforce its bylaws and rules.