Stratas are more than just condominiums. Stratas can also include: duplexes, townhouses, fractional vacation properties, even single family homes in bare land strata corporations. In British Columbia, a strata title created under the province’s Strata Property Act, enables land to be divided into what are called “strata lots”. The owner of an individual strata lot has an estate in fee simple (outright ownership of real estate meaning the property is free of any liens or other claims against title) in respect of a described part of the building, designated air space (vertical ownership), or bare land, as well as an interest as a tenant in common in respect of the remaining common areas.

In this article we will introduce and contrast two types of strata properties, bare land stratas and condominium stratas.

Bare Land Strata

A bare land strata is a strata plan on which the boundaries of the lots are defined by survey markers and not by reference to walls. It is a division of land rather than of a building or buildings. A bare land strata lot owner still owns the land as it is classified as freehold (meaning holding the land as an absolute owner – in contrast to a leasehold). The strata lot is a lot shown on a strata plan. Some parcels in a bare land strata subdivision will be held and is owned privately by a registered owner or owners while others are considered common property. Each owner is responsible for paying strata fees and their own individual property taxes. An owner’s property taxes are based on their individual lot and its improvements, together with their share of the common property. Each strata lot within the bare land development is assessed separately. Each strata lot owner is normally responsible to insure their individual home and to maintain and repair the improvements on their strata lot inside and out, including roof and siding.

Strata (Condominium Strata)

A condominium strata is a strata plan on which a parcel of land with a building is subdivided, usually into parts or units used as dwellings, with the remainder (roofs, gardens, corridors, elevators, recreation amenities, etc.) being either common property (property designated for the use of all strata lot owners) or limited common property (property designated for the use of a specific strata lot owner). Each strata lot owner is responsible for paying strata fees and their own individual property taxes.  An owner’s property taxes are based on their individual lot and its improvements, together with their share of the common property and limited common property. Each strata lot owner is also normally responsible for the walls inside the condo and paying for contents insurance. The strata corporation uses the strata fees paid by all of the owners to maintain and repair common property and limited common property (on the terms identified in the strata bylaws), to pay for common utilities and general maintenance and management of the entire property.

Bare Land Strata vs Strata

The significant difference between the two forms of stratas discussed above is the common property and what restrictions apply to the strata subdivisions. Common property is the shared assets of multiple owners of the strata complex. As said above, in a condominium strata, the common property includes anything that is not on the interior of a unit: exterior walls, roofs, windows, lobbies, elevators, parking lots, landscaping, etc. A portion of each strata lot owner’s monthly strata fees is allocated towards maintaining the common property. In a bare land strata, as the name implies, the bare land and improvements on it (Eg. a house) are not common property and the strata lot owner may do with what they like, subject to statutory building schemes, strata bylaws and other charges registered on title. The common property in a bare land strata typically includes the roads, infrastructure (sewer, water, etc.) and green space. Depending on the bare land strata subdivision, strata fees will go towards maintenance of the common property and sometimes cover garbage, sewage and water. These strata fees can vary greatly depending on the strata corporation.

When a strata plan is filed at the Land Title Office a strata corporation is automatically established. The strata corporation owns the common property. The owners of the strata lots in their strata subdivision are the members of that strata corporation. The duties of the strata corporation are to manage and maintain the common property and to keep records, such as the list of owners and their addresses. The strata corporation must hold annual meetings and see that a strata council is formed each year. That strata council has the right to enforce the rules, regulations and bylaws. Financial records must also be kept to show the strata fees collected and publish how the strata fees are saved or spent. The common roadways, clubhouses, recreational facilities, in-ground services such as sanitation and water, common liability and risk insurance, management and operations and depreciation and reserve planning will all be common expenses that form part of your annual budget. The management and operation of the strata corporation is governed by both the strata’s bylaws as well as the Strata Property Act and associated regulations.

So What Does This Mean for Potential Buyers?

A bare land strata’s common property may not be apparent without reviewing the strata plan specific to the property. A Vancouver realtor was suspended for failing to advise his clients that the property was in fact bare land strata and came with obligations that were not anticipated with their intended purpose of purchasing freehold land.

Be it bare land strata or condominium strata, a buyer should be aware of the legal nature of the proposed property prior to making an offer to purchase. A buyer should be comfortable with the specific details such as strata fees, bylaws and regulations that will apply prior to removing conditions (provided appropriate conditions are included) and completing on a purchase. A buyer’s agent (Eg. realtor, lawyer, etc.) can obtain a copy of the land title search for the property from BC Land Title & Survey Authority online If it is strata property. In addition, a buyer’s agent should contact the strata council to obtain a copy of the strata plan (this can also be obtained online, bylaws, minutes, a recent Form B (which discloses the rules of the strata corporation, strata fees, parking and storage arrangements, etc.), the current budget of the strata corporation, the owner developer’s Rental Disclosure Statement and the most recent depreciation report, if any.

Typically, because most of the condominium strata property is common property, the strata bylaws will restrict the use of the individual owners more than they might with bare land stratas. Common restrictions to look for include restrictions on rentals, pets, age, parking, etc.

As with most matters surrounding real property purchases, we strongly recommend that a lawyer is consulted prior to purchasing a strata property.  A lawyer can help discover potential issues prior to becoming the legal owner and discovering that your so-appeared-to-be freehold property has a strata corporation demanding you to pay strata fees for the roadways and other common property.

Please do not hesitate to contact us if you are thinking about buying home, bare land, strata property or any other kind of land. We will do a detailed Land Title review and provide you with advice on the legal nature of the property to put your mind at ease with your purchase.

Author: Jaime M. Boyle

This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250)448-2637 or any of our lawyers practicing in real estate law at the following: