Tony Gioventu
Province
Dear Condo Smarts: In July, we bought an investment condo to rent out. We contacted the property manager and obtained a Form B (Information Certificate) before we decided to go ahead with the purchase.
At the time, our agent told us this was sufficient information and that once we had a firm signed deal we could get the minutes and financials and take our time reading them. We rented our unit out on Sept. 1. On Sept. 5, we received a bylaw-violation notice form our strata council advising us that rentals were not permitted in our building according to the bylaws filed in 2006, and that we must evict our tenant or face a fine of $500 per week until the tenant is evicted. We did receive the minutes for the prior three years, after the sale was firm, but never read them. However, the Form B Information Certificate we received, as confirmed by the manager, did not include the bylaw amendments in 2006.
Because the strata, through their manager, disclosed the wrong bylaws, are we still bound to the new bylaws? If we cannot rent we will be forced to sell at a substantial loss. Do we have any recourse?
— EP, Richmond
Dear EP: The real question you should be asking here is: “Before a buyer enters into an agreement, what documents should they obtain, and from what source?”
A Form B Information Certificate is an important document that includes the items you will not find in the land title registry. However, it does not require past bylaw amendments to be included. Only bylaws that are about to be voted on if the strata has sent notice for them, or bylaws that have passed but have not yet been filed must be included. Reading past minutes of council meetings, and annual and special general meetings can give you some significant insight into the operations of the property.
There are other documents that are also critical. Make sure a copy of the registered strata plan and all of the bylaws that apply to the strata corporation are printed from the Land Title Registry. Read the bylaws and request copies of reports such as inspections, engineering and roofing that may impact your future investment. As a buyer or strata council , if you find yourself in a situation like EP’s, seek legal advice.
© The Vancouver Province 2008