Strata Properties:
In a strata plan, everything is either part of a strata lot or part of the common property. Generally speaking, a developer who intends to develop a strata project will either purchase the necessary land or lease it. The result is that developers may sell freehold or leasehold strata lots.
Freehold
If the developer purchases the land for development, the developer becomes the registered owner in fee simple. After the developer subdivides the land by depositing the strata plan, the Registrar of Land Titles records the developer as the fee simple owner of each of the newly created strata lots. The developer can then sell fee simple title to the buyers of the strata lots. We call these "freehold" strata developments because buyers acquire fee simple title to their strata lots from the developer.
Leasehold
If the developer leases the land for a strata development, he or she may only lease the property from the federal, provincial or a municipal government or from some other public authority. The developer must lease the land for a term of at least fifty years or more. The government or other public body that owns the land is called the "leasehold landlord". The developer leases the land under a document called a "ground lease" (sometimes called "a head lease") that sets out the terms and conditions upon which the developer has leased the property.
When a developer wishes to register a strata plan over land that is subject to a ground lease, it is called a "leasehold strata plan". To ensure, among other things, that the leasehold landlord is aware of the developer's intentions, the Registrar of Land Titles will not accept the developer's leasehold strata plan unless it is signed by the leasehold landlord.
A leasehold landlord may impose restrictions on the further leasing, assignment or occupancy of the strata lots included in the leasehold strata plan. The restriction must be set out in a Schedule of Restrictions filed in the Land Title Office when the strata plan is deposited. The restrictions are binding on the strata corporation and everyone who buys a leasehold interest in any of the strata lots.
Special Levies
The Strata Property Act permits strata corporations to raise money by special levies against the owners. A special levy is equivalent to what business partners sometimes describe as a "cash call". For instance, the strata corporation might need a special levy to pay for major repairs if there is not enough money in the CRF, or if the owners otherwise prefer not to deplete the CRF on this expenditure.
Depending on the way the levy is applied against the owners, a 3/4 or unanimous resolution is required. A 3/4 resolution is necessary if the strata corporation intends to collect contributions to the special levy according to the Schedule of Unit Entitlement, like strata fees. On the other hand, if the corporation intends to seek contribution on some other basis, a unanimous vote is necessary.
The strata corporation must use the money collected for the purpose set out in the resolution. Afterwards, the corporation must inform the owners about how the money was spent.
Bylaws
The Schedule of Standard Bylaws in the Strata Property Act applies to every strata corporation in the province, regardless of when the strata corporation was created. The Schedule of Standard Bylaws found in the Strata Property Act can be viewed by accessing the Strata Property Act on the Queens Printer website at www.qp.gov.bc.ca/statreg/.
The strata corporation may amend the standard bylaws by changing their wording or otherwise deleting or adding to them. In other words, a strata corporation can create a custom-made bylaw to change anything in its standard bylaws. For instance, a custom-made bylaw can override a standard bylaw, add something new that is not present in the standard bylaws, or delete something from the standard bylaws. A custom-made bylaw is called an "amended bylaw" in the Strata Property Act.
Rentals
Owners may rent their strata lots to tenants unless otherwise restricted. Rental restrictions are found in a strata corporation's amended bylaws or, in the case of a leasehold strata plan, in a Schedule of Restrictions filed with the leasehold strata plan.
In a strata plan, everything is either part of a strata lot or part of the common property. Generally speaking, a developer who intends to develop a strata project will either purchase the necessary land or lease it. The result is that developers may sell freehold or leasehold strata lots.
Freehold
If the developer purchases the land for development, the developer becomes the registered owner in fee simple. After the developer subdivides the land by depositing the strata plan, the Registrar of Land Titles records the developer as the fee simple owner of each of the newly created strata lots. The developer can then sell fee simple title to the buyers of the strata lots. We call these "freehold" strata developments because buyers acquire fee simple title to their strata lots from the developer.
Leasehold
If the developer leases the land for a strata development, he or she may only lease the property from the federal, provincial or a municipal government or from some other public authority. The developer must lease the land for a term of at least fifty years or more. The government or other public body that owns the land is called the "leasehold landlord". The developer leases the land under a document called a "ground lease" (sometimes called "a head lease") that sets out the terms and conditions upon which the developer has leased the property.
When a developer wishes to register a strata plan over land that is subject to a ground lease, it is called a "leasehold strata plan". To ensure, among other things, that the leasehold landlord is aware of the developer's intentions, the Registrar of Land Titles will not accept the developer's leasehold strata plan unless it is signed by the leasehold landlord.
A leasehold landlord may impose restrictions on the further leasing, assignment or occupancy of the strata lots included in the leasehold strata plan. The restriction must be set out in a Schedule of Restrictions filed in the Land Title Office when the strata plan is deposited. The restrictions are binding on the strata corporation and everyone who buys a leasehold interest in any of the strata lots.
Special Levies
The Strata Property Act permits strata corporations to raise money by special levies against the owners. A special levy is equivalent to what business partners sometimes describe as a "cash call". For instance, the strata corporation might need a special levy to pay for major repairs if there is not enough money in the CRF, or if the owners otherwise prefer not to deplete the CRF on this expenditure.
Depending on the way the levy is applied against the owners, a 3/4 or unanimous resolution is required. A 3/4 resolution is necessary if the strata corporation intends to collect contributions to the special levy according to the Schedule of Unit Entitlement, like strata fees. On the other hand, if the corporation intends to seek contribution on some other basis, a unanimous vote is necessary.
The strata corporation must use the money collected for the purpose set out in the resolution. Afterwards, the corporation must inform the owners about how the money was spent.
Bylaws
The Schedule of Standard Bylaws in the Strata Property Act applies to every strata corporation in the province, regardless of when the strata corporation was created. The Schedule of Standard Bylaws found in the Strata Property Act can be viewed by accessing the Strata Property Act on the Queens Printer website at www.qp.gov.bc.ca/statreg/.
The strata corporation may amend the standard bylaws by changing their wording or otherwise deleting or adding to them. In other words, a strata corporation can create a custom-made bylaw to change anything in its standard bylaws. For instance, a custom-made bylaw can override a standard bylaw, add something new that is not present in the standard bylaws, or delete something from the standard bylaws. A custom-made bylaw is called an "amended bylaw" in the Strata Property Act.
Rentals
Owners may rent their strata lots to tenants unless otherwise restricted. Rental restrictions are found in a strata corporation's amended bylaws or, in the case of a leasehold strata plan, in a Schedule of Restrictions filed with the leasehold strata plan.
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