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Strata Property Act

[SBC 1998] CHAPTER 43

Part 12 — Leasehold Strata Plans

Definitions

199  In this Part:

"ground lease" means a registered lease of land

(a) granted by a leasehold landlord for the purposes of this Part, and

(b) to which a model strata lot lease is attached;

"leasehold landlord" means the government of British Columbia, the government of Canada, a municipality, a regional district, a Nisga'a Village or the Nisga'a Nation, a treaty first nation or another public authority as defined by a regulation made under this Act;

"leasehold strata plan" means a strata plan in which the land shown on the strata plan is subject to a ground lease;

"leasehold tenant" means a person, including an owner developer, registered in the land title office as a tenant under a strata lot lease, whether entitled to it in the person's own right, in a representative capacity or otherwise, and includes a subtenant;

"strata lot lease" means a lease of a strata lot arising from the conversion of a ground lease under section 203 (1), and includes an assignment or transmission of a strata lot lease;

"termination", in respect of a strata lot lease, means

(a) the expiry of the strata lot lease without renewal, or

(b) the termination of the strata lot lease under section 213 (2).

Act applies to leasehold strata plans

200  (1) Subject to the regulations, the provisions of this Act apply to a leasehold strata plan.

(2) If there is a conflict between a provision of this Part and a provision of another Part, the provision of this Part prevails.

Deposit of leasehold strata plan

201  The registrar must not accept for deposit a leasehold strata plan unless

(a) the title to the land included in the leasehold strata plan is registered in the name of a leasehold landlord,

(b) the person applying to deposit the leasehold strata plan is the registered lessee under the ground lease,

(c) the unexpired term of the ground lease is at least 50 years after the date of the application to deposit the leasehold strata plan,

(d) all the land subject to the ground lease is shown on the leasehold strata plan, and

(e) the leasehold strata plan is signed by the leasehold landlord.

New indefeasible title

202  When a leasehold strata plan is deposited, the registrar must

(a) assign to the leasehold strata plan a serial deposit number, and

(b) register new indefeasible titles in the name of the leasehold landlord for each of the strata lots shown on the plan.

Conversion of ground lease

203  (1) The deposit of the leasehold strata plan operates as a conversion of the ground lease into individual leases of the leasehold landlord's interest in each strata lot, including its share in the common property,

(a) in the form of the model strata lot lease attached to the ground lease, and

(b) granted to the owner developer by the leasehold landlord.

(2) The conversion of the ground lease does not affect the obligations of the owner developer and the leasehold landlord under the ground lease.

Signature of leasehold landlord not required

204  The signature of the leasehold landlord is not required for an assignment of a strata lot lease by the owner developer, unless the ground lease provides otherwise.

Obligations under strata lot lease

205  A leasehold tenant

(a) is conclusively deemed to have agreed with the leasehold landlord to observe the terms and conditions contained in the strata lot lease, and

(b) despite any agreement to the contrary, is not bound by anything contained in the ground lease that is not also contained in the strata lot lease.

Restrictions on lease, assignment or occupancy of strata lot

206  (1) The leasehold landlord may impose restrictions on the lease, assignment or occupancy of the strata lots included in a leasehold strata plan.

(2) A restriction

(a) has no effect unless it is set out in a schedule of restrictions and filed in the land title office at the time the strata plan is deposited, and

(b) comes into effect on the registration of the plan.

(3) When a restriction is filed in accordance with subsection (2), it binds the strata corporation and the leasehold tenant to the same extent as if the schedule of restrictions contained binding agreements on the part of the strata corporation and the leasehold tenant with the leasehold landlord and with every other leasehold tenant to comply in all respects with that schedule.

Change to restrictions

207  (1) Subject to subsection (3), a leasehold landlord may, on its own or on application by the strata corporation approved by a resolution passed by a 3/4 vote at an annual or special general meeting, add to, alter or repeal any of the restrictions referred to in section 206.

(2) The amended schedule of restrictions has no effect until filed in a land title office.

(3) A leasehold landlord, other than the government of British Columbia, may amend the schedule of restrictions only with the approval of the Lieutenant Governor in Council.

(4) The amendment of the restrictions on occupancy of a strata lot does not affect persons who were leasehold tenants immediately before the amendment, but affects persons who become leasehold tenants as a result of the sublease or assignment of the strata lot lease after the amendment.

Duties of strata corporation

208  (1) On request of the leasehold landlord, the strata corporation must

(a) perform its duties under this Act,

(b) obtain and maintain insurance and pay premiums on behalf of the leasehold tenants to the extent that the leasehold tenants are required to do so under their strata lot leases,

(c) repair and maintain the common property and common assets of the strata corporation on behalf of the leasehold tenants to the extent and standard that the leasehold tenants are required to do so under their strata lot leases, and

(d) require, to the extent that the leasehold tenants are required to do so under their strata lot leases, the leasehold tenants to comply with the following:

(i)   the bylaws and rules;

(ii)   this Act, the regulations or any other enactment or law;

(iii)   any restrictions imposed by the leasehold landlord under sections 206 and 207.

(2) On application by the leasehold landlord, the Supreme Court may order the strata corporation to comply with a request made under subsection (1).

(3) The strata corporation is conclusively deemed to have a bylaw that requires the leasehold tenants to comply with the requirements of their strata lot leases that are referred to in this section.

Leasehold landlord's remedies on leasehold tenant's default

209  (1) Despite any agreement or enactment to the contrary, the leasehold landlord is not entitled to reenter and take possession of the strata lot or terminate the strata lot lease on a leasehold tenant's default in performing obligations under the strata lot lease, but may apply to the Supreme Court for an order for sale of the leasehold tenant's interest in the strata lot.

(2) On an application for sale, the court may

(a) declare that the leasehold tenant failed to observe and perform obligations under the strata lot lease, and specify the nature of the default, and

(b) order that, if the default is not corrected within the time period required by the order, the leasehold landlord may sell the leasehold tenant's interest in the strata lot at a price and on terms to be approved by the court.

(3) On an application for an order for sale or for approval of a sale, the court may, by order, give directions it considers necessary for the distribution of the proceeds and the delivery of possession.

Renewal of strata lot lease

210  (1) A strata lot lease may be renewed at the option of the leasehold landlord.

(2) A renewal of a strata lot lease must be for a term of at least 5 years.

(3) The leasehold landlord must, at least one year before the expiry of the strata lot lease, give notice in writing to the leasehold tenant that the leasehold landlord has elected

(a) to renew the strata lot lease for the renewal term specified in the notice, or

(b) not to renew the strata lot lease.

(4) If the notice is not given under subsection (3), the leasehold landlord must renew the strata lot lease for a term of 5 years.

(5) If the election is not to renew, the leasehold landlord must purchase the leasehold tenant's interest in the strata lot under section 214.

Renewal terms

211  (1) A renewal of a strata lot lease must be on the same terms as the current strata lot lease, except that the term of the strata lot lease and the rent may be changed.

(2) The rent must be that share of the current market rental value of the land included in the strata plan, excluding all buildings and improvements, apportioned to the strata lot in the proportion that the most recent assessed value of the strata lot bears to the total of the most recent assessed values of all the strata lots included in the leasehold strata plan.

(3) Agreement on the rent for the renewal period must be reached by the beginning of the renewal period unless expressly provided otherwise in the strata lot lease, or agreed to in writing between the leasehold landlord and the leasehold tenant.

(4) Despite section 175, if agreement on the rent is not reached under subsection (3) of this section, the rent must be determined by arbitration under the Arbitration Act.

Renewal of fewer than 2/3 of strata lot leases

212  An election to grant renewals to fewer than 2/3 of the strata lot leases in the leasehold strata plan is ineffective unless before delivery of the notices under section 210 (3)

(a) the leasehold landlord gives to each leasehold tenant a written notice specifying the strata lot leases that will not be renewed and the strata lot leases that will be renewed, and

(b) each of the leasehold tenants whose strata lot leases are to be renewed consents in writing to fewer than 2/3 of the strata lot leases being renewed.

Destruction of buildings

213  (1) If the buildings that are part of the leasehold strata plan are destroyed or damaged by more than 1/3 of their fair market value, the leasehold tenants may elect not to rebuild by a resolution passed by a 3/4 vote at an annual or special general meeting.

(2) When the leasehold tenants pass the resolution referred to in subsection (1), all the strata lot leases terminate and the leasehold landlord must purchase each leasehold tenant's interest in the strata lot in accordance with section 214.

Purchase of leasehold tenant's interest on termination

214  (1) The leasehold landlord must purchase a leasehold tenant's interest in the strata lot on the termination of the strata lot lease.

(2) The purchase price must be arrived at as of the date the strata lot lease terminates and must be,

(a) if a basis for calculating the purchase price was set out in the strata lot lease or in a schedule filed with the leasehold strata plan, the price calculated on that basis, or

(b) if a basis for calculating the purchase price was not set out in the strata lot lease or a schedule, the fair market value of the leasehold tenant's interest in the strata lot evaluated, in accordance with the regulations, as if the strata lot lease did not expire.

(3) The leasehold landlord may change the basis for calculating the purchase price of the strata lots set out in a schedule if

(a) the leasehold tenants consent to the change by a resolution passed by a unanimous vote at an annual or special general meeting, and

(b) an amended schedule is filed in the land title office, accompanied by a Certificate of Strata Corporation in the prescribed form, stating that the resolution referred to in paragraph (a) has been passed and that the amended schedule conforms to the resolution.

(4) Unless expressly provided otherwise in the strata lot lease or agreed to in writing by the leasehold landlord and the leasehold tenant, the purchase price under subsection (2) (b) must be determined, despite section 175, by arbitration under the Arbitration Act if the leasehold landlord and the leasehold tenant have failed to agree on the purchase price by 30 days before the date the strata lot lease expires, or 30 days after the date of a termination under section 213 (2).

(5) The leasehold landlord must purchase the leasehold tenant's interest in the strata lot within 30 days after the earlier of

(a) the date the purchase price is agreed to, and

(b) the date the purchase price is determined by arbitration referred to in subsection (4).

Cancellation of strata plan

215  (1) On termination of all of the strata lot leases, the leasehold strata plan must be cancelled and the strata corporation must be wound up in accordance with Part 16.

(2) A leasehold strata plan may only be cancelled and the strata corporation wound up on termination of all the strata lot leases.

Conversion to freehold strata plan

216  (1) When the leasehold landlord transfers the fee simple estate in each of the strata lots included in a ground lease to each of the leasehold tenants and the registrar registers each leasehold tenant as the fee simple owner of their strata lot described in the strata lot lease,

(a) the strata plan continues as a strata plan and the land shown on the strata plan is not subject to a ground lease,

(b) the strata corporation continues as if it were originally created by deposit of a strata plan that was not a leasehold strata plan,

(c) the strata lot lease ceases to exist and the leasehold tenant and the leasehold tenant's successors in interest cease to be liable for the performance of obligations in the strata lot lease,

(d) any charge in existence against the leasehold tenant's interest immediately before the registration of the fee simple becomes a charge against the fee simple estate acquired by the leasehold tenant, and, if the charge was registered, the registrar must register it against the fee simple title, and

(e) any schedule of restrictions filed under section 206 is repealed and the restrictions set out in it cease to apply.

(2) The registrar may register the fee simple title in the strata lot only if the registrar has

(a) received a similar application for registration in respect of all leasehold strata lots included in the leasehold strata plan, and

(b) determined that all the applications are registrable.

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