In strata developments, parking areas and storage lockers
are not all allocated in the same way. The specific rights of owners or tenants
to use parking stalls or storage lockers vary depending on how the use of these
areas has been allocated in the development.
Verifying use
can be a puzzling problem for Realtors and buyers. As of January 14, 2014, the process is
easier because of changes to the Strata Property
Act.
Strata corporations must now identify parking
spaces and storage lockers associated with units on the new Information
Certificate (Form B) given to potential buyers and anyone authorized by the
owner or buyer. REALTORS® assisting clients buying or selling strata property
should review the development’s strata plan to determine whether parking and storage
areas are designated as:
·
a separate strata lot
or part of a strata lot;
·
limited common
property; or
·
common property.
This is any part of
the registered strata plan identified with boundaries or as a separate strata
lot and owned solely by the owner.
·
Parking and storage
areas may be designated on the strata plan as a separate strata lot or part of
a strata lot.
·
Parking and storage
areas intended for commercial use can be designated as a separate strata lot,
and will have their own strata lot number.
·
Parking and storage
areas intended to be used in conjunction with a residential strata lot can’t be
a separate strata lot, but can be designated as part of the strata lot and so
share the same strata lot number as the residential unit.
·
A parking or storage
area designated as part of a strata lot will always be owned by the strata lot owner,
and a strata lot owner will transfer ownership of these areas to a purchaser
upon the sale of their strata lot.
Limited common
property (LCP)
Parking and storage
areas are designated on the strata plan as LCP for the exclusive use of a
particular strata lot. An owner with exclusive use doesn’t own the area, but
has the exclusive right to use the area.
·
LCP areas are common property
owned by all owners in the strata corporation in proportion to each strata
lot’s unit entitlement.
·
If parking and storage
areas are designated on the strata plan as common property and aren’t limited
to the use of a specific strata lot, a strata corporation can create LCP
designations by passing a resolution either by a unanimous vote or a ¾ vote.
·
The right to exclusive
use of an LCP area attaches to the strata lot, not to the specific owner. When
an owner sells their strata lot, the right to exclusive use of the LCP area
automatically transfers to the new owner of the strata lot.
Common Property
Parking and storage
areas may be designated on the strata plan as common property. Similar to LCP,
common property is owned by all owners in a strata corporation in proportion to
their respective unit entitlements.
The use of areas
designated as common property can be allocated to owners in three different
ways:
1. A grant of
exclusive use. The strata corporation
can give an owner exclusive rights to use parking and storage areas designated
as common property for a maximum term of one year.
· The strata corporation
can renew the term, alter conditions, and cancel at any point during the term
by giving reasonable notice to the owner.
· The ability to use the
common property attaches to the owner and not the strata lot. Vendors can’t
contractually assign permission to use parking stalls or storage lockers to new
owners, as with a lease.
· The new owner must ask
the strata corporation for permission to use the area exclusively.
· The strata corporation
has discretion to grant exclusive use of the same or a different parking or
storage area, or deny the new owner the right to use any parking or storage
area.
2.
An assignment of rights under a lease or licence. When a developer
creates a strata development, the developer can grant a lease or licence over
parking or storage areas to a related company or to itself (a head lease).
·
The developer or
related company can assign its lease or licence interest in individual parking
or storage areas to buyers of a strata lot in the development.
·
Head leases or
licences of common property are created in developments with large underground
parking and storage areas to enable the developer to control which buyers are
assigned which parking and storage areas after the strata plan is filed.
·
Some head leases or
licences are worded so the sale of a strata lot to a buyer automatically
triggers an assignment of the individual parking or storage area to the new
buyer. If this isn’t the case, the vendor can contractually assign their lease
or licence in the contract of purchase and sale.
3.
Common use of parking spaces. A strata plan may
contain a parking area designated as common property that is not allocated to
the use of any specific owners.
·
Owners can often use
common property parking areas on a first-come-first-serves basis.
·
There may also be
strata corporation bylaws or rules governing how owners use the parking area.
(Source REBGV)
