Grandfather clause hazy


Sunday, June 1st, 2008

Conditions do apply

Tony Gioventu
Province

Dear Condo Smarts: Our strata recently passed a number of new bylaws. I wholeheartedly supported them as they will improve our lifestyles here.

We passed a new rental bylaw that limits rentals to five, an age bylaw that limits owners to 55 and over, and a pet bylaw that limits each unit to one dog or one cat.

At our information meeting beforehand, our property manager told us not to worry because anyone underage, with extra pets or tenants would be grandfathered. Only two months have passed since the meeting and we, the strata council, are in some real disagreements over what that meant.

If we’re grandfathered, doesn’t that mean the bylaw doesn’t apply to us, so if we wanted to get an extra dog or cat that would be OK?

What about tenants? Can’t anyone who was a landlord at the time continue to rent the suite until they sell it?

— MW, North Vancouver

Dear Muriel: The term “grandfathered” is used extensively in publications and by strata councils, yet the term does not appear anywhere in either the Strata Property Act, Regulations or Standard Bylaws.

There is a common misunderstanding that grandfathering exempts an owner from the new bylaw for as long as they own their suite.

However, that is not the intent of the Act.

The exemptions granted by the Strata Property Act are conditional. They allow for a period or circumstance of exemption to accommodate persons who would be affected by a new bylaw. Pets, rentals and age are the exact bylaws the exemptions apply to.

Under the act, pets, tenants and owners not in compliance with the new bylaws who are residing in a strata lot at the time the bylaw is passed — not when it’s registered — are exempt from the bylaw until their residency/condition terminates.

For example, if your strata passes a new pet bylaw that limits owners to one cat or one dog, and you have two dogs, then on the moving or passing of one of your dogs, you would be limited to only one dog.

If a resident was 35 at the time, and the strata passed a 55-and-over occupancy bylaw, then the 35-year-old could remain as long as he or she wishes, but any new occupants or tenants would have to be 55 and over.

In the case of a tenant, the current tenant at the time of the bylaw being passed would be permitted to remain for whatever period they and their landlord agreed to.

But if that tenant moves, the landlord would only be able to rent for one more yea; at that time the landlord would either have to occupy the unit, leave it vacant or sell it, but could not rent it out to a new tenant.

For an investor this is important to understand. As long as there are rental vacancies in the bylaw, you could rent again, but if the quota is filled you cannot rent once your exemption expires.

Don’t interpret the term “grandfathering” as perpetual with the exemptions granted by the Act, which are only conditional.

Tony Gioventu is executive director of the Condominium Home Owners Association.

E-mail: [email protected]

© The Vancouver Province 2008


One Response to “Grandfather clause hazy”

  1. elizabeth kelly says:

    what if you bought the property from developer before strata was formed? does this entitle you to rent it out? do you have to abide by other strata bylaws.for example min one year rental. move in and out fees?