An investment without appreciating the bundle of rights attached to the investment is not being duly diligent
Justin da Rosa
Canadian Real Estate Wealth
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. And of those units, only one can be rented out at a given time, despite an appeal.
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 th investors can do.
“The bylaws were in the condominium documents when the owners bought the property. Each condo board has its own by-laws which must follow the Strata Property Act,” Tim Mangat, a seasoned investor, told CREW sister publication, 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.
As Mangat points out, property purchasers have a “bundle of rights,” which includes the right of possession, control, exclusion, enjoyment disposition.
However, this particular ruling is the result of British Columbia’s government prioritizing the rights of the collective condo board than the individual owner, according to Mangat.
“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.
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