Bulletin
Number: SPA-05-01
Title: Rental
Restrictions For Residential Strata Property
Date: October
25, 2005
The
Superintendent of Real Estate’s office has recently received enquiries with respect
to rental restrictions for residential strata property. This Information
Bulletin explains the changes in rental restrictions that were legislated in
2000 and are scheduled to begin on January 1, 2006.
The Strata
Property Act was brought into force and replaced the Condominium Act on
July 1, 2000. Under both Acts, a ¾ majority of the strata lot owners could pass
bylaws to restrict or prevent owners from renting out their units. However, an
important exception to such rental restriction bylaws existed under both Acts
because the developer could file a Rental Disclosure Statement with the
Superintendent of Real Estate. Some of these Rental Disclosure Statements
allowed the developer, and owners who bought directly from the developer, to
rent out their units even if a majority of the owners decided later on to pass
a rental restriction bylaw.
It was unclear
under the old Condominium Act whether subsequent purchasers – in other
words, purchasers who bought units not straight from the developer, but from other
purchasers – could also rely on a Rental Disclosure Statement. Therefore, after
the development community had been consulted, the Strata Property Act now
makes clear that subsequent purchasers cannot rely on the rental rights created
for a developer and initial purchaser under a Rental Disclosure Statement.
Transitional relief was provided for over five years, so that although the
change was legislated in 2000 it will not take effect for Condominium Act Rental
Disclosure Statements until January 1, 2006.
In 2000, the
Superintendent of Real Estate prepared Instruction Guide 15 on How to Apply
Rental Restriction Bylaws. That Instruction Guide is available on the following
website: www.fic.gov.bc.ca. As explained in Instruction Guide 15, if
a Rental Disclosure Statement was filed for strata lots under the old Condominium
Act:
o subsequent purchasers of a strata lot, who did not purchase from the developer, will be subject to a rental restriction bylaw on the earlier of:
o the expiry date set out in the Rental
Disclosure Statement filed under the old Condominium Act; or
o January 1, 2006.
Additionally,
as explained in Instruction Guide 15, the Strata Property Act provides
for other exceptions to rental restriction bylaws. There is an exception in
case of hardship and an exception for family members. Additionally, a rental
restriction bylaw does not take effect until one year after the later of: the
date it was passed; and the date a pre-existing tenant leaves.
The
Superintendent of Real Estate’s 29 Instruction Guides provide further
information about strata property rentals and other strata matters. Those
Instruction Guides are available in public libraries and on the website noted
above. In order to discuss any strata matter, or obtain strata information beyond
what is set out in the 29 Instruction Guides, please contact the Pacific
Condominium Association of B.C., phone 604-538-8888 weekdays 12:30 to 3:30.