Tony Gioventu
Province
Dear Condo Smarts: We are in a divided strata of a highrise and a commercial division. Several years ago, we voted to create sections so that the costs that were allocated exclusively to each section would be fairly divided.
In March, the residential owners were voting on a bylaw that would limit rentals to a maximum of five units. Several commercial-section owners registered their votes and voted against the resolution, preventing us from adopting a rental- limitation bylaw.
We lost the vote by one. Can you please explain to us why the commercial section has a right to dictate to the residential section how owners use their strata lots ?
— JWV, Vancouver Island
To understand sections you have to understand the legal authority of a strata corporation.
The Strata Act says that a strata corporation has the power and capacity of a natural person of full capacity. In simple terms, a strata corporation can buy or sell property, mortgage, lease, commence lawsuits, create bylaws and enter into contracts for service or operations, like any normal person.
A section is a corporation and has the same powers and duties as the strata corporation. So a section can do all of the same things, but only those that apply to that section. This also means sections can create their own bylaws that only apply to their section, such as your rental-restriction bylaws, and only that section votes on those bylaws.
The commercial section did not have voting authority at the special general meeting of the residential section as it only applied to the residential section.
Furthermore, when I reviewed your documents and minutes, I discovered each commercial strata lot was counted as one vote, but on the registered strata plan, all of the commercial strata lots have less than one vote, in most cases .49 votes. Therefore, the commercial section did not represent enough votes to defeat your resolution.
Commercial strata lots may have fewer or greater than one vote per strata lot as their voting is based on the relevant area of their strata lot.
Always seek legal advice when creating or amending rules or bylaws that pertain to sections.
Tony Gioventu is executive director of the Condominium Home Owners Association.
E-mail him at [email protected]
