In a previous article, we outlined the changes that would be coming to BC's Residential Tenancy Act and Strata Property Act.
As of July 29, 2016, new rules for strata termination are in effect. Changes to the Strata Property Act allow strata owners to terminate a strata corporation with an 80% majority vote.
Previously, strata termination required a unanimous vote along with signed authorization from all lenders and registered charge holders.
The purpose of this change was to allow strata owners the ability to make the decisions for the best possible return on their aging properties. In old properties with increasingly expensive repair costs, the land itself is commonly worth more than the units collectively. In such cases, the new rules make it easier for owners to sell the property.
Our partner, Clark Wilson LLP, has created a helpful infographic summarizing the process for terminating a strata corporation and selling the property:
Strata Termination Process
For more insurance and risk-related information and resources, please contact a CapriCMW Strata Risk Advisor.
Source: Government of B.C. News Release "Changes will benefit owners of older strata properties" (July 29, 2016).