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1998/99 Legislative Session: 3rd Session, 36th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE JOY K. MacPHAIL

MINISTER OF FINANCE AND CORPORATE RELATIONS

BILL 67 – 1999

STRATA PROPERTY AMENDMENT ACT, 1999

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the

Province of British Columbia, enacts as follows:

Section 1 of the Strata Property Act, S.B.C. 1998, c. 43, is amended by

repealing the

definitions of "approving officer" , "bylaw"

and "tenant" and substituting the following:

"approving officer" means an appropriate

approving officer appointed under the Land Title Act;

"bylaw" means a bylaw of a strata corporation;

"tenant" means a person who rents all or part of

a strata lot, and includes a subtenant but does not include a leasehold tenant in a

leasehold strata plan as defined in

section 199 or a tenant for life under a registered

life estate; .

Section 3 is repealed and the following substituted:

Responsibilities of strata corporation

3 Except as otherwise provided in this Act, the strata

corporation is responsible for managing and maintaining the common property and common

assets of the strata corporation for the benefit of the owners.

Section 14 (4) is amended by striking out "6 weeks" and

substituting "8 weeks" .

Section 21 (6) is amended by striking out "6 weeks" and

substituting "8 weeks" .

Section 28 (3) is amended by striking out "section 116."

and substituting "section 116 (1)."

Section 35 (1) (

b) is amended by striking out "with telephone

numbers at which they can be contacted" .

Section 40 (2) is amended by striking out "one month"

and substituting "2 months" .

Section 46 is repealed and the following substituted:

Agenda and resolutions at an annual or special general meeting

(1) Subject to subsection (2), the council determines

the agenda of an annual or special general meeting.

(2) Persons holding at least 25% of the strata corporation's votes

may, by written demand, propose a resolution or raise a matter specified in the demand.

(3) A resolution or matter raised under subsection (2) must be

included

(

a) in the notice given under

section 45 (3) about the next annual

or special general meeting of the strata corporation, and

(

b) on the agenda of that meeting.

(4) Subsection (3) does not apply to a special general meeting

held under

section 43 (6).

Section 48 is amended by adding the following subsection:

(3) Unless otherwise provided in the bylaws, if within 1/2 hour

from the time appointed for an annual or special general meeting a quorum is not present,

the meeting stands adjourned to the same day in the next week at the same place and time

but, if on the day to which the meeting is adjourned a quorum described in subsection

(2) is not present within 1/2 hour from the time appointed for the meeting, the eligible

voters present in person or by proxy constitute a quorum.

Section 50 (1) is amended by striking out ", the regulations or

the bylaws." and substituting "or the regulations."

Section 51 is amended by repealing subsections (10) and (11) and substituting

the following:

(10) The resolution stands and may be implemented only if one of

the following conditions is met:

(

a) a demand for reconsideration is not made under this section;

(

b) the resolution is approved by a 3/4 vote at the special

general meeting held under this section;

(

c) the meeting held under this

section does not proceed for lack

of a quorum as set out in subsection (9).

(11) The resolution may be presented for reconsideration under

this

section only once.

Section 52 is repealed and the following substituted:

Unanimous votes

(1) This

section applies only to strata corporations

comprised of 10 or more strata lots.

(2) If a resolution required to be passed by a unanimous vote

under the Act or the regulations is supported by all of the strata corporation's votes

except for

(

a) the vote in respect of one strata lot, in a strata corporation

comprised of at least 10 strata lots, or

(

b) the votes in respect of more than one strata lot, if those

votes together represent less than 5% of the strata corporation's votes,

the strata corporation may, by a resolution passed by a 3/4 vote

at an annual or special general meeting, apply to the Supreme Court for an order under

subsection (3).

(3) On application under subsection (2), the court may, if

satisfied that the passage of the resolution is in the best interests of the strata

corporation and would not unfairly prejudice the dissenting voter or voters, make an order

providing that the vote proceed as if the dissenting voter or voters had no vote.

(4) In making an order under subsection (3), the court may make

any other order it considers just, including an order that the strata corporation offer to

purchase a strata lot owned by a dissenting voter at its fair market value or that the

strata corporation otherwise compensate a dissenting voter.

Section 53 is amended

(

a) in subsection (2) by striking out "section 116." and

substituting "section 116 (1)." , and

(

b) in subsection (3) by striking out "46 (1)" and substituting "46

(2)" .

Section 56 (3) is repealed and the following substituted:

(3) The following persons may be proxies:

(

a) only if permitted by regulation and subject to prescribed

restrictions, an employee of the strata corporation;

(

b) only if permitted by regulation and subject to prescribed

restrictions, a person who provides strata management services to the strata corporation;

(

c) subject to the regulations, any other person.

Section 61 (1) is amended by striking out "may be given"

and substituting "must be given" .

Section 63 (1) is amended by striking out "may be given"

and substituting "must be given" .

Section 65 is repealed and the following substituted:

Informing resident owners and tenants

65 For the purposes of sections 98 (6), 106, 108 (4), 125

(4), 128 (4) and 167, and any regulations that require the strata corporation to inform

owners or tenants of certain matters, the strata corporation may, instead of giving notice

under

section 61, inform resident owners and tenants by one or more of the following

methods or by any other method:

(

a) leaving a document containing the information at a location

designated by the strata corporation for the distribution of such information;

(

b) posting a document containing the information in a part of the

common property designated by the strata corporation for the posting of such information.

Section 68 (4) is amended by adding "but subject to the

regulations," after "Despite subsections (1) to (3)," .

Section 83 is amended by striking out "person who is

authorized" and substituting "public or local authority which is

authorized" .

Section 84 (1) and (2) is amended by striking out "person

authorized" and substituting "public or local authority

authorized" .

Section 93 is repealed and the following substituted:

Minimum and maximum contributions to contingency reserve fund

93 Subject to the requirements set out in the regulations,

the strata corporation must determine the amount of the annual contribution to the

contingency reserve fund.

Section 95 is amended by adding the following subsection:

(4) Despite subsection (2), the strata corporation may lend money

in the contingency reserve fund to the operating fund as permitted by the regulations.

Section 98 (3) is amended by adding ", whether physical or

otherwise" after "loss or damage" .

Section 105 is repealed and the following substituted:

Budget surpluses and deficits

(1) Subject to

section 14, contributions to the

operating fund which are not required to meet operating expenses accruing during the

fiscal year to which the budget relates must be dealt with in one or more of the following

ways, unless the strata corporation determines otherwise by a resolution passed by a 3/4

vote at an annual or special general meeting:

(

a) transferred into the contingency reserve fund;

(

b) carried forward as part of the operating fund, as a surplus;

(

c) used to reduce the total contribution to the next fiscal

year's operating fund.

(2) If operating expenses exceed the total contribution to the

operating fund, the deficit must be eliminated during the next fiscal year.

Section 116 is amended

(

a) in subsection (1) by adding "with respect to that strata

lot" after "any of the following" ,

(

b) by repealing subsection (1) (e),

(

c) by repealing subsection (2) and substituting the following:

(2) The strata corporation may register a lien against any strata

lot, but only one strata lot, owned by an owner as owner developer, by registering in the

land title office a Certificate of Lien in the prescribed form if the owner developer

fails to pay an amount payable to the strata corporation under

section 14 (4) or (5), 17

(

b) or 20 (3). , and

(

d) by renumbering subsections (3) to (5) as subsections (4) to (6) and by adding

the following subsection:

(3) Subsections (1) and (2) do not apply if

(

a) the amount owing has, under

section 114, been paid into court

or to the strata corporation in trust,

(

b) arrangements satisfactory to the strata corporation have been

made to pay the money owing, or

(

c) the amount owing is in respect of a fine or the costs of

remedying a contravention.

Section 125 is amended

(

a) by repealing subsection (2) and substituting the following:

(2) A rule is not enforceable to the same extent that a bylaw is

not enforceable under

section 121 (1). , and

(

b) in subsection (4) by adding "and tenants" after "inform

owners" .

Section 128 is amended

(

a) by repealing subsection (2) and substituting the following:

(2) An amendment to a bylaw has no effect until an Amendment to

Bylaws in the prescribed form is filed in the land title office. , and

(

b) by adding the following subsections:

(3) An Amendment to Bylaws must be filed in the land title office

within 60 days of the amendment being approved.

(4) The strata corporation must inform owners and tenants of any

amendment to the bylaws as soon as feasible after the amendment is approved.

Section 135 (2) is amended by striking out "must promptly"

and substituting "must, as soon as feasible," .

Section 150 (1) is amended by striking out "against liability of

the strata corporation" and substituting "to insure the strata

corporation against liability" .

Section 151 is amended by striking out ", other than liability or

expenses incurred as a result of a breach of

section 6 (1) (

a) or 31 (a)" .

Section 159 (1) is amended by striking out "30 days"

and substituting "60 days" .

Section 167 (1) is amended by striking out "promptly if it is

sued." and substituting "as soon as feasible if it is sued."

Section 169 (1) is amended

(

a) by striking out "as owner, or" and substituting "as

owner or as owner developer, or" , and

(

b) by striking out "and" at the end of paragraph (a), by

adding ", and" at the end of paragraph (b), and by adding the

following:

(

c) does not, despite being an owner, have a right to attend those

portions of any annual or special general meeting or council meeting at which the suit is

dealt with or discussed.

Section 181 is amended by striking out "discuss with the

parties" and substituting "advise the parties of" .

Section 182 (2) is repealed and the following substituted:

(2) A person who receives notice under this

section may make a

statement in writing to the arbitrator.

(3) A person who makes a statement under subsection (2) may be

joined as a party in the arbitration if

(

a) the person consents to being joined as a party,

(

b) the arbitrator requests that the person be joined as a party,

and

(

c) the other parties consent.

Section 184 (3) is repealed and the following substituted:

(3) A person who is not a party to a dispute may give evidence

only if

(

a) the person consents to give evidence, and

(

b) the person is requested to give evidence by a party to the

dispute.

Section 185 (3) is amended by striking out "2 weeks"

and substituting "4 weeks" .

Section 207 is amended

(

a) in subsection (1) by striking out "The leasehold landlord"

and substituting "Subject to subsection (3), a leasehold landlord" ,

and

(

b) in subsection (3) by striking out "under a ground lease"

after "A leasehold landlord" .

Section 239 is amended by adding the following subsection:

(3) Despite any other provision of this Act, a strata lot may not

be subdivided by the deposit of a strata plan that, under

section 2, would establish a

strata corporation.

Section 243 is amended by adding the following subsection:

(3) An approving officer must not approve a bare land strata plan

unless it complies with the regulations.

Section 244 (1) (

a) is repealed and the following substituted:

(

a) show the boundaries of the land included in the strata plan

and, except in the case of a strata lot in a bare land strata plan, show the location of

the buildings, .

Section 255 is amended by striking out "Owners Strata Plan"

and substituting "Owners, Strata Plan" .

Section 257 is amended by striking out "To designate limited

common property on a strata plan, or" and substituting "To amend a

strata plan to designate limited common property, or to amend a strata plan" .

Section 259 is amended by adding the following subsection:

(5) Despite any other provision of this Act, a strata plan may not

be amended to divide a strata lot if the amendment would result in a strata plan

consisting of bare land strata lots and strata lots that are not bare land strata lots.

Section 260 (1), (2) and (3) is amended by striking out "prior" .

Section 273 (3) is amended by striking out "If a strata

corporation has a

schedule of interest on destruction," and substituting "If

a strata corporation has a

schedule of interest on destruction that was required under

section 4 (

g) of the Condominium Act , R.S.B.C. 1996, c. 64, or a similar

schedule

that was required under any former Act," .

Section 278 (3) is amended by striking out "If the strata

corporation has a

schedule of interest on destruction," and substituting "If

a strata corporation has a

schedule of interest on destruction that was required under

section 4 (

g) of the Condominium Act , R.S.B.C. 1996, c. 64, or a similar

schedule

that was required under any former Act," .

Section 286 is repealed and the following substituted:

Application

286 This Part applies to bare land strata plans except to

the extent set out in the regulations.

Section 292 is amended

(

a) in subsection (2) by repealing paragraph (

g) and substituting the following:

(

g) respecting the persons who may be proxies, the number of

proxies they may hold, the circumstances in which they may be proxies and restrictions on

their powers as proxies; , and

(

b) in subsection (3) by renumbering paragraph (

h) as paragraph (

j) and by adding

the following paragraphs:

(

h) respecting the determination of the amount of the annual

contribution to the contingency reserve fund under

section 93;

(

i) respecting the circumstances in which a strata corporation may

lend money in the contingency reserve fund to the operating fund; .

Section 293 is amended

(

a) by repealing subsections (1), (2) and (3) and substituting the following:

(1) Except as otherwise provided by this Act and the regulations,

this Act and the regulations apply to a strata plan deposited and a strata corporation

created under the Condominium Act, R.S.B.C. 1996, c. 64 or any former Act. ,

and

(

b) by renumbering subsections (4), (5) and (6) as subsections (2), (3) and (4).

51 The

Schedule of Standard Bylaws is amended

(

a) in

section 5 (1) (

d) by striking out "doors or windows"

and substituting "doors, windows or skylights" ,

(

b) by repealing

section 7 (1) (

b) and substituting the following:

(

b) at a reasonable time, on 48 hours' written notice, to inspect,

repair or maintain common property, common assets and any portions of a strata lot that

are the responsibility of the strata corporation to repair and maintain under these bylaws

or insure under

section 149 of the Act. ,

(

c) in

section 8 (c) (ii) (

D) and (d) (iv) by striking out "doors

and windows" and substituting "doors, windows and skylights" ,

(

d) by repealing

section 10 (1), (3), (4) and (5) and substituting the following:

(1) The term of office of a council member ends at the end of the

annual general meeting at which the new council is elected. ,

(

e) in

section 14 (4) by striking out "as soon as possible"

and substituting "as soon as feasible" ,

(

f) in

section 15 (2) by striking out "2 weeks" and

substituting "one month" , and

(

g) in

section 18 (3) by striking out ", along with the names of the

council members moving and seconding any resolutions, and the names of any dissenting or

abstaining council members" .

Consequential Amendment

Homeowner Protection Act

Section 23 (5) of the Homeowner Protection Act, S.B.C. 1998, c. 31, is

amended by striking out " Condominium Act. " and substituting " Strata

Property Act. "

Commencement

53 This Act comes into force by regulation of the

Lieutenant Governor in Council.

Explanatory Notes

SECTION 1: [Strata Property Act, amends

section 1] amends

definitions to

clarify existing provisions.

SECTION 2: [Strata Property Act, re-enacts

section 3] recognizes that the

strata corporation is not always responsible for management and maintenance.

SECTION 3: [Strata Property Act, amends

section 14 (4)] provides a more

realistic time frame for the owner developer to determine the amount of the shortfall.

SECTION 4: [Strata Property Act, amends

section 21 (6)] provides a more

realistic time frame for the owner developer to update the financial statement.

SECTION 5: [Strata Property Act, amends

section 28 (3)] clarifies that an

owner developer will not lose the right to sit on the strata council for failure to pay

certain penalties.

SECTION 6: [Strata Property Act, amends

section 35 (1) (b)] protects

council members' privacy rights.

SECTION 7: [Strata Property Act, amends

section 40 (2)] extends the time

within which an annual general meeting must be held, giving strata corporations the option

of obtaining audited financial statements from the previous year before voting on a budget

for the next year.

SECTION 8: [Strata Property Act, re-enacts

section 46] clarifies that

items can be placed on the meeting agenda by the council and by the method outlined in

this section.

SECTION 9: [Strata Property Act, adds

section 48 (3)] provides strata

corporations with a means to avoid repeated deferral of meetings because of lack of a

quorum.

SECTION 10: [Strata Property Act, amends

section 50 (1)] clarifies that

the voting threshold cannot be changed by bylaw.

SECTION 11: [Strata Property Act, repeals and replaces

section 51 (10) and (11)]

clarifies intent.

SECTION 12: [Strata Property Act, re-enacts

section 52] clarifies the

application of this section.

SECTION 13: [Strata Property Act, amends

section 53 (2) and (3)]

clarifies that an owner developer will not lose the right to sit on the strata council for

failure to pay certain penalties and corrects a cross reference consequential to the

amendment of

section 46 of the Act by this Bill.

SECTION 14: [Strata Property Act, repeals and replaces

section 56 (3)]

clarifies which persons may hold proxies.

SECTION 15: [Strata Property Act, amends

section 61 (1)] is self

explanatory.

SECTION 16: [Strata Property Act, amends

section 63 (1)] is self

explanatory.

SECTION 17: [Strata Property Act, re-enacts

section 65] re-enacts a

provision for informing owners and tenants of certain matters.

SECTION 18: [Strata Property Act, amends

section 68 (4)] allows for

different types of boundaries to be shown for new types of bare land strata plans as

defined by the regulations.

SECTION 19: [Strata Property Act, amends

section 83] clarifies intent.

SECTION 20: [Strata Property Act, amends

section 84 (1) and (2)]

clarifies intent.

SECTION 21: [Strata Property Act, re-enacts

section 93] provides for a

more flexible method of determining annual contributions to the contingency reserve fund.

The regulations will initially contain the current formula for contributions set out in

the Act.

SECTION 22: [Strata Property Act, adds

section 95 (4)] allows for

temporary shortages in the operating fund caused by yearly bills falling due before all

monthly contributions have been collected to cover these bills.

SECTION 23: [Strata Property Act, amends

section 98 (3)] clarifies that

the loss prevented may be other than physical loss to the strata corporation.

SECTION 24: [Strata Property Act, re-enacts

section 105] provides methods

for dealing with a surplus or deficit in the operating fund.

SECTION 25: [Strata Property Act, amends

section 116] clarifies the

extent to which strata corporations may register liens against owners and owner

developers.

SECTION 26: [Strata Property Act, amends

section 125]

(

a) clarifies the intention of the provision, and

(

b) clarifies that tenants are also to be notified of any new

rules.

SECTION 27: [Strata Property Act, amends

section 128]

(

a) parallels the provision requiring notice of new rules, and

(

b) adds subsections (3) and (4).

SECTION 28: [Strata Property Act, amends

section 135 (2)] maintains

consistency with the wording of other notice provisions in the Act.

SECTION 29: [Strata Property Act, amends

section 150 (1)] clarifies

intent.

SECTION 30: [Strata Property Act, amends

section 151] removes the

limitation on strata corporations obtaining errors and omissions insurance to cover bad

faith conduct of council members.

SECTION 31: [Strata Property Act, amends

section 159 (1)] provides a more

realistic timeframe in which to decide on repairing or replacing damaged property.

SECTION 32: [Strata Property Act, amends

section 167 (1)] maintains

consistency with the wording of other notice provisions in the Act.

SECTION 33: [Strata Property Act, amends

section 169 (1)]

prevents any owner developer who is being sued by the strata corporation

from using its position as "owner" to access strata corporation records;

prevents any owner who is being sued from using his or her status to attend

meetings dealing with the lawsuit.

SECTION 34: [Strata Property Act, amends

section 181] clarifies

arbitrators' duties.

SECTION 35: [Strata Property Act, amends

section 182] clarifies that

being joined as a party is at the option of the joined party.

SECTION 36: [Strata Property Act, repeals and replaces

section 184 (3)] clarifies

that presenting evidence is at the option of the non-parties.

SECTION 37: [Strata Property Act, amends

section 185 (3)] provides a more

realistic time frame for discovering correctable errors.

SECTION 38: [Strata Property Act, amends

section 207 (1) and (3)]

clarifies intent.

SECTION 39: [Strata Property Act, adds

section 239 (3)] clarifies that

subdivision by the deposit of a strata plan cannot result in a different strata

corporation being created.

SECTION 40: [Strata Property Act, adds

section 243 (3)] clarifies intent.

SECTION 41: [Strata Property Act, repeals and replaces

section 244 (1) (a)]

removes erroneous words.

SECTION 42: [Strata Property Act, amends

section 255] maintains

consistency with

section 2 (1) (

b) of the Act.

SECTION 43: [Strata Property Act, amends

section 257] clarifies that this

section deals only with designating limited common property by way of plan amendment.

SECTION 44: [Strata Property Act, adds

section 259 (5)] clarifies that

this

section does not permit stratification of a building in a bare land strata.

SECTION 45: [Strata Property Act, amends

section 260 (1), (2) and (3)]

clarifies intent.

SECTION 46: [Strata Property Act, amends

section 273 (3)] clarifies

intent.

SECTION 47: [Strata Property Act, amends

section 278 (3)] clarifies

intent.

SECTION 48: [Strata Property Act, re-enacts

section 286] provides for

exceptions to the

section by regulation.

SECTION 49: [Strata Property Act, amends

section 292] clarifies a power

respecting proxies, provides for regulations to determine contributions to the contingency

reserve fund and provides for regulations defining the circumstances in which a strata

corporation may lend money in the contingency reserve fund to the operating fund.

SECTION 50: [Strata Property Act, amends

section 293] clarifies that the Strata

Property Act applies to existing strata corporations.

SECTION 51: [Strata Property Act, amends the

Schedule of Standard Bylaws]

amends sections 5 and 8 to include skylights with windows and doors;

repeals and replaces

section 7 (1) (

b) to remove a provision that may be

subject to abuse;

amends

section 10 to retain the current system of electing a strata council;

amends

section 14 (4) to maintain consistency with the wording of other

notice provisions in the Act;

amends

section 15 (2) to accommodate regular monthly meeting schedules of

most strata corporations;

amends

section 18 (3) to remove a provision that might create bad feelings

in strata corporations.

Homeowner Protection Act

SECTION 52: [Homeowner Protection Act, amends

section 23 (5)] corrects a

cross reference.

Copyright © 1999: Queen's Printer, Victoria, British Columbia, Canada