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The province has announced changes to the Strata Property Act and it means greater flexibility for members who want to sell their property.
The changes will allow strata owners to terminate their strata corporation by an 80 per cent vote of all owners, instead of the previous unanimous vote, which also required the signatures of all lenders and other registered charge holders. According to the province, most other jurisdictions, including Alberta and Ontario, do not require a unanimous vote to terminate a strata corporation.
“As older strata corporations reach the end of their life cycle, major building and common property components start to fail, resulting in expensive repair bills. In such cases, terminating a strata corporation and selling the underlying land for redevelopment may be the best choice for strata lot owners. Often, the underlying land value of these stratas is higher than the sum of the market value of the individual units. More units can also be rebuilt on the site, adding to the housing supply,” said the province in a statement.
The changes allow for court oversight to protect any minority dissenting owners and registered charge holders, such as mortgage providers. Without an appeal being required, the court will automatically consider whether the proposed termination is significantly unfair to one or more owners or charge holders.
According to the province, the changes are based on the BC Law Institute’s recommendations and there was an extensive public consultation prior to the decision.
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