Winter 2012 - Issue 4

NEW STRATA REGULATION SHOULD BE ASSESSED CAREFULLY

     Just before Christmas the Provincial Government announced a new regulation that gives a strata corporation up to 2 years to complete a “depreciation report” or hold a vote of owners and pass a resolution to opt out of this new requirement.    The "depreciation report" would disclose the estimated cost and timing of major repairs to common property as well as the strata corporation’s plans to meet the cost of those repairs.    The new regulation affects almost 500,000 strata properties in 14,000 BC strata corporations with 5 or more strata lots.


     It is said that the new regulation would encourage better planning for major repairs to common property, improve disclosure of the condition of common property and reduce the number of financially devastating “surprises” for buyers of strata properties, and enable a strata corporation to waive the new requirement by passing an annual resolution supported by a ¾ vote of owners.    While the foregoing are true, it is also the case that the new regulation will make it nearly impossible for a strata council or a committee of owners to complete the required depreciation report on their own, require a major expenditure by a strata corporation to hire a “qualified person” to complete a depreciation report every 3 years, and challenge the limited number of qualified professionals in BC to complete up to 14,000 such reports by December 2013.


     Based on these implications, it seems likely that a high proportion of strata corporations will pass the required resolution to opt out of the new requirement.


     A strata corporation that passes the required resolution to opt out of the new requirement may be placing its owners at a significant disadvantage when it comes time for owners to sell their properties.    It is reasonable to expect that buyers will be more inclined to buy a strata property where there is a depreciation report.    In the absence of a depreciation report, many buyers will not want to take a major risk in not knowing the state of planning for repairs to common property.


     You can view the new Strata Property Regulation (section 6.2) here Click to View.


     Tell us what you think of the new regulation by sending us an email under the “Contact Us” tab on this website.


Editor’s Note:We challenge you to use this website as a resource in contacting the Premier and other politicians with your strata legislation concerns and to contribute your ideas, suggestions and comments to our editors. You are encouraged to refer this website to other strata owners. Thank You, Deryk

Contents

* VISOA Survey

"Click Here" To help VISOA continue to speak on behalf of strata owners about their concerns with BC's strata legislation, VISOA is seeking input from BC strata owners.   The survey results will provide VISOA with important information that will help in its communication with government and the media.

History

The British Columbia Strata Property Act (SPA) came into force on July 1, 2000.   Since then there has been massive growth in the number and diversity of strata properties.   Many problems have arisen in applying the Act to strata issues and in protecting the rights of strata owners.   Although the present BC government made a commitment in 2003 to review the SPA it has refused to undertake either a comprehensive review of strata legislation or consult publicly about the legislation that affects over 700,000 strata owners.   Instead it passed Bill 8 in 2009 to amend the SPA based on "private and confidential" discussions with real estate industry insiders while ignoring many pressing concerns of strata owners.   This website is provided as a resource for strata owners seeking a public review of BC legislation affecting the rights of strata owners.