Homeowners impacted by recent ruling

Homeowners impacted by recent ruling

Homeowners impacted by recent ruling A recent B.C. Court of Appeals ruling serves as a sober reminder for brokers to share with clients the importance of carefully reading condo property acts.
 
The Court of Appeals upheld a strata bylaw that permits only one unit to be rented at any one time within a Vancouver condo building.
 
A total of 158 units comprise 1445 Marpole Avenue, Hycroft Towers, in Vancouver.
 
The appeal was brought forth by four family member investors who, together, own three units in the building. They had previously rented out one of the three units, despite their application to do so being rejected by the strata council. That was in violation of the strata bylaws, which were upheld by the ruling.
 
And according to one investor, there is nothing the family can do.
 
“The bylaws were in the condominium documents when the owners bought the property. Each condo board has it own by-laws which must follow the Strata Property Act,” Tim Mangat, a seasoned investor, told MortgageBrokerNews.ca. “It's always the owner's responsibility to understand the rules and regulations and adhere to them.”
 
It’s an interesting case that certainly draws attention to the importance of thoroughly reading strata agreements prior to selling.
 
Many homeowners elect to retain properties when purchasing additional real estate with the purpose of renting them out. However, as this case proves, the practice isn’t always that simple.
 
“The BC government has more of a socialist view for the rights of a condo owner, stripping away individual rights and allowing more control to the condo board under the protection of the Strata Act,” Mangat said.
 
5 Comments
  • Robbie Ryan 2016-08-11 10:42:52 AM
    they can sell.
    Post a reply
  • Robbie Ryan 2016-08-11 10:46:48 AM
    This is the buyers agents responsibility not a mortgage brokers. I don't know many brokers that read the by-laws. Why wasn't this discovered in the condo document review process? Was there sufficient time granted for the review process or was this another situation where an unconditional offer was tendered.
    Post a reply
  • Murray Schultz 2016-08-11 10:48:52 AM
    And yet, the metro Vancouver area and the provincial government are wagging their tongues out of the other side of their mouths regarding rental stock and the adverse effect investor-owned and largely vacant properties have on affordable housing.
    Post a reply