Strata Dissolutions Vancouver
In my opinion, this is the easiest way to dissolve a strata as outlined in the Strata Property Act is the Voluntary Winding Up Without Liquidator:
STRATA PROPERTY ACT
[SBC 1998] CHAPTER 43
a resolution must be passed by an 80% vote at an annual or special general meeting.
(d) the conversion of each owner's interest, in the owner's strata lot and in the common property and common assets of the strata corporation, to an interest as a tenant in common in the shares set out in the conversion schedule in
In November 2015, the province amended certain portions of the Strata Property Act1 that govern how strata corporations dissolve. Once in force, these amendments should make it easier for strata corporations to dissolve and to redevelop their underlying real property; however, the changes raise questions about how the new dissolution procedures will work in practice.
Strata corporations that wish to dissolve currently have three options: (1) voluntary winding up without a receiver, (2) voluntary winding up with a receiver, or (3) winding up by court order. Voluntary dissolution without a receiver is an attractive option, since it does not involve the time and expense of appointing (and paying for) a receiver or going to court. However, strata corporations should give careful consideration to the benefits of appointing a receiver, given the significant number of administrative matters that need to be addressed when dissolving as described further below.
All voluntary dissolutions under the current version of the Act, with or without a receiver, must be approved by a unanimous vote of the owners of the strata corporation. After receiving unanimous approval, the strata corporation must apply to the registrar of titles under the Land Title Act, who then oversees the dissolution. This application must be accompanied by the written consent of all holders of registered charges against the land shown on the strata plan, as well as a certificate of the strata corporation, a reference plan and such other documents as required by the registrar to resolve priorities and transfer title. If such a voluntary dissolution cannot be obtained, the only other recourse is an application to the British Columbia Supreme Court for an order to wind-up the strata corporation.
This procedure can present problems for strata corporations who wish to dissolve. If the strata's unanimous consent cannot be obtained, the only recourse available is to the Supreme Court. Jurisprudence suggests that unanimity is often very difficult to obtain, often owing to one or more recalcitrant holdouts. Deadlock will typically ensue, because the majority of the owners desiring the dissolution will often refuse to approve necessary capital expenditures to the strata property. All owners can thus suffer a precipitous decline in the value of their units if the deadlock lasts and the common property falls into disrepair.
Please contact me for an informal meeting to discuss your strata's options. Option 1, voluntary wind up without a receiver seems to be the most favourable option if all owners of your strata agree to dissolution of the property. A lawyer that specializes in this field and I can come to visit your strata with further information, and guide you in this process.
After dissolution of the corporation, former owners will hold the property as tenants in common. If not carefully considered in advance, owners who are opposed to the winding-up of the strata corporation could attempt to oppose the sale of the property, because land transfer forms must be signed by all tenants in common. In practice, any prospective sale will almost certainly coincide with the application to the court for winding-up, as the proposed redevelopment plan will be needed to establish that the winding-up is in the best interests of the owners.
We anticipate that the courts will be called upon to interpret and clarify the finer points of these amendments once in force. In the meantime, strata corporations and developers may wish to consider the impact of these changes and seek advice on how the new amendments will impact their property development decisions moving forward.
© McMillan LLP 2016
In order to receive the proceeds from the sale of your strata in relation to the different sizes and square footage of the properties a conversion schedule or the interest upon destruction formula is necessary.
(b) identify land shown on the strata plan and land held in the name of or on behalf of the strata corporation, but not shown on the strata plan, by legal description sufficient to allow the registrar to identify it in the records of the land title office;
may be used in place of the assessed value for the purposes of the formula in subsection (1) (d) (ii).
(3) 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, that schedule determines the owner's interests in the land and personal property on the winding up of the strata corporation and for that purpose replaces the formula in subsection (1) (d) (ii).