Spotlight on Types: Should the Strata Property Act require a strata corporation that wishes to cancel types of strata lots to obtain approval of this decision at a general meeting by adoption of resolutions passed by 3/4 votes of both eligible voters in the type and all eligible voters in the strata corporation?
4 November 2016
By Kevin Zakreski
BCLI is running a public consultation on complex stratas. It is asking for public input into proposed changes to the law governing sections, types, and phases. For information on how to participate in the consultation please visit the Strata Property Law Project—Phase Two webpage.
This post is part of a series that spotlights issues on sections, types, and phases discussed in the Consultation Paper on Complex Stratas. To read other posts in the series please click here.
Brief description of the issue
The Strata Property Act doesn’t contain special rules regarding cancellation of a type of strata lot. The general provisions in the act relating to repeal of bylaws would apply to repealing a bylaw that identified a type of strata lot. Elsewhere in the consultation paper the committee has proposed amending the act to require the consent of owners of a type of strata lot to bylaws that create the type or to bylaw amendments involving the type bylaw. Should this rule be extended to the repeal of a bylaw identifying a type?
Discussion of options for reform
There are a number of advantages to this proposed amendment. It would guard against any potential abuses of owners in the type, who would likely lack the voting power that could be marshalled by the broader strata corporation. It would also set out a clear procedure to follow in cancelling a type. Finally, this proposal would ensure consistency with the committee’s earlier tentative recommendations.
The downside of this proposal is that it would add to the complexity of cancelling a type. There could be conflicts if type owners and other owners had different views on the question. It might also increase the administrative burden on a strata corporation with types.
The committee’s tentative recommendation for reform
The committee favours extending its procedure for adopting bylaws to create types to amending bylaws to cancel types.
The committee tentatively recommends:
The Strata Property Act should require, for a strata corporation to cancel a type of strata lot: (a) the strata corporation must hold an annual or special general meeting to consider cancellation of the type; (b) the notice of meeting must include a resolution to amend the bylaws to provide for the cancellation of the types; and (c) the resolution referred to in (b) must be passed (i) by a 3/4 vote by the eligible voters of the strata lots comprising the type identified in the bylaw, and (ii) by a 3/4 vote by all the eligible voters in the strata corporation.