Strata Plans and Common Property

undefined
 
Cleveland
Doan LLP
 
Strata
Lawyers
 
ALTERATIONS:
EVERYTHING YOU EVER
WANTED TO KNOW
__________
PRESENTED BY  SHAWN M. SMITH
 
Strata plans come in two types:
 
 
- conventional (shows  buildings: apartments,
 
townhomes or detached homes)
 
 
- bare land (no buildings shown)
Strata plans are divided into three different areas:
strata lots, common property and limited common
property
 
THE STRATA PLAN
 
THE STRATA PLAN
 
THE STRATA PLAN
 
"common property" means
 
(a)that part of the land and buildings shown on a strata plan that is
not part of a strata lot, and
 
(b)pipes, wires, cables, chutes, ducts and other facilities for the
passage or provision of water, sewage, drainage, gas, oil, electricity,
telephone, radio, television, garbage, heating and cooling systems, or
other similar services, if they are located
 
(i) within a floor, wall or ceiling that forms a boundary
 
  
(A) between a strata lot and another strata lot,
  
(B) between a strata lot and the common property, or
  
(C) between a strata lot or common property and
  
another parcel of land, or
 
 
(ii) wholly or partially within a strata lot, if they are capable of
 
being and intended to be used in connection with the
 
enjoyment of another strata lot or the common property;
 
 
 
THE STRATA PLAN
 
Certain types of common property (i.e. pipes, wires, ducts, etc.)
are defined by their 
physical location 
(i.e. within in a boundary
wall).
 
"limited common property"
 means common property designated
for the exclusive use of the owners of one or more strata lots;
 
Typically LCP is:
 
- decks, patios, balconies
 
- parking spaces
 
- storage
 
LCP can also be common property that, by its nature, services
only one strata lot - 
Louie v. Strata Plan VR-1323 (2015), 55
C.C.L.I. (5th) 217
 
THE STRATA PLAN
 
"strata lot"
 means a lot shown on a strata plan
 
Unless the strata plan says otherwise
, the boundary
between strata lot and common property is the midway
point of the wall, floor or ceiling – s.68 SPA
 
Boundary between two strata lots is the 
midway point of
the wall, floor or ceiling.
 
LCP boundaries are determined by physical measurements
set out on the plan.
 
THE STRATA PLAN
 
s.120 SPA – except to the extent that contrary bylaws
are filed in the Land Title Office (LTO) the Standard
Bylaws are the bylaws of the strata corporation.
 
Most strata corporations use the Standard Bylaws
when it comes to alterations.
 
Those bylaws can be replaced, amended or
supplemented – s.128 SPA.
 
 
THE STANDARD BYLAWS
 
Standard Bylaw 5 addresses alterations to strata lots and
consequential alterations to the common property.
 
Standard Bylaw 6 addresses alterations to the common
and limited common property.
 
Both require an owner to obtain written permission before
undertaking work.
 
A key difference between the two is that approval under
Standard Bylaw 5 cannot be unreasonably withheld.
 
Where approval is withheld the strata council needs to
have a justifiable reason for doing so.
 
THE STANDARD BYLAWS
 
Standard Bylaw 5 captures changes to:
 
(a)    
 
the structure of a building;
 
(b)    
 
the exterior of a building;
 
(c)    
 
chimneys, stairs, balconies or other things
  
attached to the exterior of a building;
 
(d)     
 
doors, windows or skylights on the exterior of a
 
         
 
building, or that front on the common property;
 
(e)    
 
fences, railings or similar structures that enclose
  
a patio, balcony or yard;
 
(f)      
 
common property located within the boundaries
  
of a strata lot;
 
(g)     
 
those parts of the strata lot which the strata
  
corporation must insure under section 149 of the
  
Act.
 
THE STANDARD BYLAWS
 
Standard Bylaw 5(1)(g)
 
 
…those parts of the strata lot which the strata
 
corporation must insure under section 149 of the
 
Act.
 
Under s.149 the strata corporation is required to insure:
 
(a)
 
buildings shown on the strata plan, and
 
(b)
 
fixtures built or installed on a strata lot, if the
 
fixtures are built or installed by the owner
 
developer as part of the original construction on the
 
strata 
 
lot.
 
 
THE STANDARD BYLAWS
 
Regulation 9.1 “fixtures” includes “items attached to a
building, including floor and wall coverings and
electrical and plumbing fixtures, but does not include,
if they can be removed without damage to the
building, refrigerators, stoves, dishwashers,
microwaves, washers, dryers or other items”
 
As a result Bylaw 5(1) applies to work involving:
Flooring
Cabinets
Plumbing fixtures (ie. tubs and showers)
Fireplaces
Stairs
 
THE STANDARD BYLAWS
 
BARE LAND STRATA CORPORATIONS:
 
Standard Bylaw 5 does not apply.
 
Absent a registered building scheme, there are no
restrictions on what can be built.
 
Can enact bylaws which control what can be built, where
it can be built, etc.
 
Cannot restrict things which a building scheme allows -
Winchester Resorts Inc. v. Strata Plan KAS2188 (2002),
4 B.C.L.R. (4th) 390.
 
THE STANDARD BYLAWS
 
The term “alteration” was first given judicial
consideration by the Ontario Superior Court of Justice
in Wentworth Condominium Corporation 198 v.
McMahon 2009 CarswellOnt. 1273.
 
“alteration” means “something that changes the
structure”.
 
But what does that really mean? What is a change?
What is meant by structure?
 
WHAT IS AN ALTERATION?
 
The Owners, Strata Plan NWS254 v. Hall 2016 BCSC 2363.
 
“Here, the work involved the removal and replacement of
four windows and the patio door. The replacement of the
windows and door 
did not change the structure of the
respondent’s unit, or the common property
. I conclude that
the replacement of the four windows and the patio door
was not an “alteration” within the meaning of ss.5(1) or
6(1) of the Standard Bylaws requiring the prior approval in
writing of the Strata Corporation
.”
 
Bottom Line: Replacing like for like is not an alteration
.
 
WHAT IS AN ALTERATION?
 
Allwest International Equipment Sales Co. v. The Owners,
Strata Plan LMS4581 2018 BCCA 187
 
An alteration is something that changes the building (i.e.
makes it different)
 
What is meant by “structure” doesn’t really matter.
 
The change must have an element of materiality to it.
 
Court of Appeal confirmed that cutting a 2 inch hole in a
wall was enough to be an alteration.
 
 
WHAT IS AN ALTERATION?
 
Allwest 
has far reaching implications for interior work.
 
Standard Bylaw 5(1)(g) includes within its scope:
“items attached to a building, including floor and wall
coverings and electrical and plumbing fixtures”.
 
Almost anything that is not a routine repair or
replacement (like for like) would be caught by it.
 
Consider whether that is what owners want.
 
WHAT IS AN ALTERATION?
 
Some examples of minor things being considered
“alterations” are:
 
 
Wilchek v. The Owners, Strata Plan VR 55, 2017
BCCRT 67 – Minor plumbing work necessary to
connect a dishwasher would alter common property.
 
Friedrich v. The Owners, Strata Plan K515, 2018
BCCRT 184 - painting exterior French doors a different
colour was an “alteration”.
 
WHAT IS AN ALTERATION?
 
 
Parnell v. The Owners, Strata Plan VR 2451,
2018 BCCRT 7 the installation of doorbell cameras
and video surveillance cameras were considered
alterations.
 
 
Boyer v. Downey et al, 2018 BCCRT 156 the
drilling of lag bolts into joists to support a medical left
system was held to be an alteration because of the
impact on the strength of the joists.
 
WHAT IS AN ALTERATION?
 
Standard Bylaw 6 – common property
 
has limitations when it comes to changes to patios,
decks, balconies and yard areas.
 
not everything that is done will constitute an
alteration (or even an addition or improvement).
 
much will turn on how the item is constructed or
where it is placed.
 
WHAT IS AN ALTERATION?
 
Term “alteration” is not uniformly applied when it comes to
structures:
 
hot tub is not an alteration - The Owners, Strata Plan
LMS4255 v. Newell 2012 BCSC 1542
 
gazebo-type structure on a patio was an alteration -
Giddings et al v. The Owners, Strata Plan BCS 3620,
2018 BCCRT 61
 
construction of an arbour in a back yard was an
“alteration or addition or doing a renovation or other
work” -  Zhang v. The Owners, Strata Plan BCS1115 2017
BCCRT 79
 
 
WHAT IS AN ALTERATION?
 
Changes to landscaping generally considered an alteration:
 
planting of trees and bushes on the common property -
Wu v. Hu and The Owners, Strata Plan BCS 3579, 2017
BCCRT 81.
 
planting of trees,  placement of large vegetable boxes,
the removal of a hedge and its replacement with a fence,
the construction of  patio and the installation of drainage
were alterations - Anthony v. Schnapp 2016 BCSC 1839
 
installing a fence and planting a garden is an alteration 
-
Friedrich
 v. 
The Owners, Strata Plan K515
, 2018 BCCRT
18
 
WHAT IS AN ALTERATION?
 
“Habitable area” is defined as “the area of a
residential strata lot which can be lived in, but does
not include patios, balconies, garages, parking stalls
or storage areas other than closet space.”
 
It is used to determine each strata lot’s unit
entitlement which in turn determines its share of the
common expenses.
 
Those portions of the strata lot which are not
considered habitable area are identified on the strata
plan.
 
SPECIAL KINDS OF ALTERATIONS
 
s.70(4) of the SPA
 
Subject to the regulations, if an owner wishes to increase
or decrease the habitable part of the area of a residential
strata lot, by making a nonhabitable part of the strata lot
habitable… and the unit entitlement of the strata lot is
calculated on the basis of habitable area… or on the basis
of square footage in accordance with section 1 of the
Condominium Act…, the owner must:
 
(a) seek an amendment to the Schedule of Unit
Entitlement under section 261, and
 
(b)
 
obtain the unanimous vote referred to in section 261
before making the change.
 
SPECIAL KINDS OF ALTERATIONS
 
Regulation 5.1(2) exempts an owner from the unanimous
vote requirement where the increase to the habitable area,
combined with any previous increase to the habitable area,
is:
 
less than 10% of the habitable area of the strata lot and
less than 20 square metres.
 
The prior written approval of the strata corporation, as set
out in the bylaws, is still required.
 
Typical situation where s.70(4) applies is enclosing a
garage or part of it
 
SPECIAL KINDS OF ALTERATIONS
 
Enclosing common or limited common property (i.e.
a balcony) does not trigger a change in the unit
entitlement.
 
Unit entitlement is based on the habitable area of
the strata lot, not areas outside it.
 
Changing the way in which common property is used
by enclosing it does not change its nature; it is still
common property.
 
SPECIAL KINDS OF ALTERATIONS
 
Removing a wall between two strata lots – s.70(1) and (2)
of the SPA.
 
Permission cannot be refused so long as the work complies
with:
 
(i) a building regulation within the meaning of the
 
Building Act,(i.e. the Building Code); and
 
 
(ii) any applicable municipal or regional district
 
bylaws
 
Must not interfere with the provision of utilities or other
services to any other strata lot or to the common property.
 
Does not create a single new strata lot.
 
SPECIAL KINDS OF ALTERATIONS
 
8 (1)
 
A person must not, without a bona fide and reasonable
justification,
 
 
(a) deny to a person or class of persons any
 
accommodation, service or facility customarily
 
available to the public, or
 
 
(b) discriminate against a person or class of persons
 
regarding any accommodation, service or facility
 
customarily available to the public
 
because of the race, colour, ancestry, place of origin, religion,
marital status, family status, physical or mental disability, sex,
sexual orientation, gender identity or expression, or age of that
person or class of persons
 
HUMAN RIGHTS CODE
 
The Code applies to strata corporations because they are
providing “services” - 
Konieczna
 v. 
The Owners Strata Plan
NW2489
 2003 BCHRT 38.
 
 Strata corporation is 
obligated to accommodate a person
with a disability to the point of undue hardship – see Mahoney
obo Holowaychuk v. The Owners, Strata Plan NW332 et al
2008 BCHRT 274.
 
each party has certain obligations with respect to establishing
the need for the accommodation and alternative
accommodation options - Leary v. Strata Plan VR1001, 2016
BCHRT 139
 
HUMAN RIGHTS CODE
 
When considering a request for permission involving the Code,
the Tribunal has said:
 
“I disagree with the submission of the Strata Council that it
cannot consider specific or special needs of its unit owners.
However, I agree with its submission that requiring Mrs.
Calderoni follow the procedure set out in its by-laws, regarding
a proposed renovation, is not a contravention of the Code. In my
view, the Strata Council has a duty to ensure that it bases its
review of a proposed modification of a unit on adequate and
reliable information and plans.”
 
Calderoni v. Strata Council Plan No. K6 2009 BCHRT 10
 
HUMAN RIGHTS CODE
 
Standard Bylaws 5 and 6 both refer to the permission of
the strata corporation.
 
In most cases that means the permission of the strata
council.
 
Under ss.4 and 26 of the SPA the strata council performs
the powers and duties of the strata corporation.
 
s.71 - the strata corporation must not make a significant
change in the 
use
 or 
appearance
 of common property
unless approved by a ¾ vote
 
GIVING PERMISSION
 
When is an alteration “significant”? Factors to consider:
 
(1)
 
A change would be more significant based on its
visibility or non-visibility to residents and its visibility or
non-visibility towards the general public;
 
(2) 
 
Whether the change to the common property affects
the use or enjoyment of a unit or a number of units or an
existing benefit of a unit or units;
 
(3)
 
Is there a direct interference or disruption as a
result of the changed use?
 
GIVING PERMISSION
 
 
(4) 
 
Does the change impact on the marketability or
value of the unit?
 
(5) 
 
The number of units in the building may be
significant along with the general use, such as whether it
is commercial, residential or mixed use; and
 
(6)
 
Consideration should be given as to how the strata
corporation has governed itself in the past and what it has
allowed. For example, has it permitted similar changes in
the past?
 
GIVING PERMISSION
 
Examples of “significant” changes:
 
the installation of garden lighting - 
O’Neill
 v. 
The Owners,
Strata Plan LMS 898
, 2018 BCCRT 20;
 
the placement of a gazebo on a patio - 
Giddings et al
 v.
The Owners, Strata Plan BCS 3620
, 2018 BCCRT 61;
 
extension of a deck and installation of railings – 
Foley v.
The Owners, Strata Plan VR387 2014 BCSC 1333.
 
Planting of garden beds and fruit trees, removing a
hedge and constructing a fence – 
Anthony v. Schnapp
2016 BCSC 1839
 
GIVING PERMISSION
 
Requests for permission can be made in writing or by asking for
a hearing under s.34.1 of the SPA.
 
Under s.34.1 a hearing must be held within 4 weeks and written
decision provided within 1 week afterwards.
 
No deadline to respond to a written request.
 
Two month delay was okay where there was a reason for it -
Grant v. The Owners, Strata Plan BCS 337, 2018 BCCRT 70
 
Council cannot call an emergency meeting to approve a request.
An owner’s lack of planning is not an emergency.
 
GIVING PERMISSION
 
Standard Bylaws require approval to be in 
writing
 
Be very clear and detailed about what was approved. It
helps when the owner expands the scope of work.
 
Council has discretion to impose conditions even
though the bylaws don’t say so - The Owners, Strata
Plan BCS 983 v. Muir, 2018 BCCRT 157
 
Nonetheless, the bylaws should list the conditions so
owners are aware in advance and council has some
parameters within which to work.
 
GIVING PERMISSION
 
Some of the major things to be concerned about:
 
Structural changes (are they safe?)
 
Is a building permit required? (Onus should be placed on
the owner to prove one is not required)
 
Who is doing electrical and plumbing work?
 
Flooring – noise impact and how to minimize
 
Is a change to the development permit required?
 
GIVING PERMISSION
 
Some examples of when a building permit is required when you:
 
Make alterations, additions or repairs to an existing building
Complete a previously unfinished area in an existing building,
Make interior structural renovations
Remodel or construct a deck
Install or alter plumbing within a building
Install a new chimney or fireplace
Enclose your carport or change your garage to living space
 
(Regional District of Nanaimo website)
 
GIVING PERMISSION
 
Some examples of when a building permit is 
not
 required for:
 
Installing cupboards
Roofing repairs or replacements (providing that no structural
changes are made)
Exterior finish repair or replacement (e.g., stucco or siding,
providing that no structural changes are made)
Landscaping or sidewalks
Fences less than 2 meters in height
 
(Regional District of Nanaimo website)
 
GIVING PERMISSION
 
Three areas of concern re common property
alterations:
 
Builders Liens
 
Worksafe coverage
 
Warranties for previous work 
(the alteration could
limit the applicability of warranties for building
envelope repairs and other work)
 
GIVING PERMISSION
 
Common property is owned by all owners as tenants-in-
common - s.66 SPA
 
Strata corporation controls the common property on behalf
of the owners – s.3 SPA
 
Since there is not a separate title for common property,
liens for work done on or to the common property get
registered against title to the strata lots
 
Where someone employs trades without Worksafe
coverage, they are liable for the costs related to an injury
suffered by a worker.
 
GIVING PERMISSION
 
Does some sort of exclusive use designation need to
accompany the permission?
 
Friedrich
 v. 
The Owners, Strata Plan K515
, 2018 BCCRT
184
the owner did extensive improvements to the yard behind
their strata lot
 
Effectively enclosed the area with plantings and a fence
 
CRT ordered the owner to apply for exclusive use
designation
 
GIVING PERMISSION
 
Exclusive use designated in one of two ways:
 
Short term exclusive use under s.76 SPA
 
Must be renewed annually
Can be revoked on reasonable notice
Is granted to a person, not a strata lot
 
Limited common property designation under s.74 SPA
 
Approved by ¾ vote at AGM/SGM
Carries over to the next owner
 
GIVING PERMISSION
 
Under the Standard Bylaws, a strata corporation can
require an owner to:
 
“agree, in writing, to take responsibility for any
expenses relating to the alteration.”
 
Commonly referred to as an “Assumption of Liability
Agreement” (ALA) or an “Indemnity Agreement”.
 
Purpose is to ensure that the strata corporation does
not incur additional repair and maintenance costs as a
result of the alteration.
 
 
ASSUMPTION OF LIABILITY
 
Refusal to sign an ALA is a breach of the strata
corporation’s bylaws – Corner v. The Owners, Strata
Plan K833 2017 BCCRT 89.
 
Failure to take action where an owner doesn’t sign one
when required can lead to the strata corporation being
responsible for the costs to repair -Allard v. The
Owners, Strata Plan VIS 962, 2017 BCCRT 111
 
ASSUMPTION OF LIABILITY
 
Critical when the alteration relates to or impacts an
area which the strata corporation is obligated to repair
and maintain under the SPA or its bylaws.
 
Not always necessary for alterations to a strata lot
interior since the owner is already responsible to
repair and maintain the strata lot.
 
They cannot make the owner responsible for repairs
and maintenance for which the strata corporation
would otherwise be responsible.
 
ASSUMPTION OF LIABILITY
 
The existence of an ALA has to be disclosed on a Form
B. Item (c) requires:
 
Are there any agreements under which the owner of
the strata lot described above takes responsibility for
expenses relating to alterations to the strata lot, the
common property or the common assets?
  
 
__no  __ yes [attach copy of all agreements]
 
A failure to disclose an ALA on the Form B will make
strata unable to make a new owner responsible for
costs related to an alteration – s.59(5) SPA
 
ASSUMPTION OF LIABILITY
 
Form B and s.59 would appear to imply that a new
owner is automatically bound by the terms of the ALA
signed by the prior owner.
 
However, that may not be the case.
 
Easement cases: positive covenants only binding on
the parties to the original agreement, not successor
owners; unless those successor owners have agreed in
writing to be bound by those agreements.
 
ASSUMPTION OF LIABILITY
 
Two ways to address this potential problem:
 
 
have a procedure (and bylaw) in place to have
new owners sign the assumption agreement; or
 
 
pass a bylaw which makes owners responsible
for additional costs where that was term of the
original approval.
 
ASSUMPTION OF LIABILITY
 
ALA does not make an owner responsible to actually
carry out repairs, only to reimburse the strata for the
costs of doing so.
 
Making an owner responsible for repairs requires an
amendment to the bylaws.
 
In the case of common property, s.72(2)(b) does not
allow that.
 
REPAIRS AND MAINTENANCE
 
At common law, when an object is attached or affixed
to land with some degree of permanence, it becomes
part of the land and hence a “fixture”.
 
The greater the degree of attachment, the greater the
chance it is a fixture and not a chattel.
 
Where an object rests on its own weight it is presumed
to remain a chattel.
 
Whether it is a fixture depends upon whether the
purpose of the attachment is (a) to enhance the land,
or (b) for the better use of the chattel as a chattel.
 
REPAIRS AND MAINTENANCE
 
if something is attached to the common property (i.e.
a balcony enclosure) it becomes part of the common
property.
 
heat pumps (air conditioners) which serviced
individual strata lots placed on the common property
were strata responsibility to repair - Newman v. The
Owners, Strata Plan EPS680 2017 BCCRT 122 and
Warren v. The Owners, Strata Plan VIS6261 2017
BCCRT 139
 
In Warren, the same reasoning was extended to a
hose bib, roof top irrigation system, and landscaping
 
REPAIRS AND MAINTENANCE
 
Allard v. The Owners, Strata Plan VIS 962, 2017 BCCRT
111
 
Prior owner installed a solarium enclosing a balcony
 
Prior owner refused to sign an ALA. Strata did nothing
about it.
 
New owner bought unit.
 
Bylaws obligated the strata corporation to repair things
attached to the exterior of the building.
 
New owner not liable for repair costs. Strata had to
repair.
 
 
REPAIRS AND MAINTENANCE
 
Under s.149 of the SPA, the strata corporation is
required to insure the building as built by the owner-
developer.
 
Alterations are generally not covered by the strata
corporation’s insurance.
 
Alterations, upgrades and improvements to a strata lot
are generally covered by the owner’s insurance.
 
Alterations to common property may be covered by the
strata corporation’s insurance policy, depending on
the wording.
 
INSURANCE
 
S.161 of the SPA permits owners to obtain insurance for
property and against perils not covered by the strata
corporation’s insurance
 
The section uses the word “may” and is thus permissive. A
bylaw mandating an owner to obtain insurance would be
contrary to the SPA and unenforceable – s.121 SPA
 
This would also include any provision requiring an owner to
obtain liability insurance since s.161 refers to it.
 
As a named insured on the strata corporation policy an
owner is entitled to use the coverage under that policy.
 
INSURANCE
 
The primary methods for enforcing the bylaws of a strata
corporation are:
 
 
(a) 
 
imposing fines against the offending
 
tenant or owner;
 
 
(b) 
 
taking steps to remedy a contravention
 
pursuant to s.133 of the SPA;
 
 
(c) 
 
seeking an order of the CRT that the
 
owner comply with the bylaws.
 
Don’t delay enforcement – In The Owners, Strata Plan KAS 510
v. Nicholson, 2017 BCCRT 48 the CRT refused to order the
removal of a deck where it had been there more than two years.
 
UNAPPROVED ALTERATIONS
 
Standard Bylaw 24 would apply to unauthorized
alterations:
 
“If an activity or lack of activity that constitutes a
contravention of a bylaw or rule continues, without
interruption, for longer than 7 days, a fine may be
imposed every 7 days.”
 
However, fines don’t always have the desired effect.
 
Cannot levy fines indefinitely – that is not enforcing
the bylaws.
 
UNAPPROVED ALTERATIONS
 
s.133 SPA: The strata corporation may do what is
reasonably necessary to remedy a contravention of its
bylaws or rules, including
 
 
(a) doing work on or to a strata lot, the common
 
property or common assets, and,
 
 
(b) removing objects from the common property or
 
common assets.
 
Unapproved alterations is perhaps one of the only areas
where this is a practical option.
 
Cannot lien for costs incurred under s.133.
 
 
UNAPPROVED ALTERATIONS
 
Strata corporations can also seek orders to deal with
unapproved alterations:
 
The Owners, Strata Plan BCS 983 v. Rempel, 2018 BCCRT
130 the court ordered the owner to remove part of a
canopy which exceeded what had been approved.
 
Boyer v. Downey et al, 2018 BCCRT 156 the owner was
ordered to repair damage caused by an unauthorized
alteration.
 
Wu v. Hu and The Owners, Strata Plan BCS 3579, 2017
BCCRT 81 - CRT ordered an owner who constructed a
fence without approval to apply for retroactive
permission
.
 
UNAPPROVED ALTERATIONS
 
The Owners, Strata Plan VR 484 v. Lawetz, 2017 BCCRT 59
 
Previous owner installed washing machine without
permission and contrary to bylaws
 
Strata refused to give retroactive permission because
plumbing system couldn’t handle additional flow from
machines
 
CRT held it was reasonable to refuse permission based
on the concerns surrounding plumbing
 
Current owner was ordered to remove machine and
restore plumbing
 
UNAPPROVED ALTERATIONS
 
Retroactive approval
 
Is a practical means of addressing unapproved alterations.
 
It strikes a balance between enforcement and accommodation.
 
Conditions can be imposed, but they should not be punitive.
 
Fines can be imposed until those conditions are met.
 
Need not be given but owners will have difficulty claiming it is
significantly unfair not to grant it - Allwest International
Equipment Sales Co. v. The Owners, Strata Plan LMS4581 2017
BCSC 1646
 
UNAPPROVED ALTERATIONS
 
 
 
 
 
QUESTIONS
 
BYLAWS FOR OUR TIMES
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In this informational document presented by Shawn M. Smith of Cleveland Doan LLP Strata Lawyers, you will learn about the different types of strata plans, including conventional and bare land plans, as well as the concept of common property and limited common property in strata developments. The document delves into the definitions and distinctions of these key terms, providing clarity on the responsibilities and rights associated with each category. Gain insights into strata lots, common property features like pipes and wires, and the exclusive use of limited common property areas such as decks and parking spaces.

  • Strata Plans
  • Common Property
  • Limited Common Property
  • Conventional Plans
  • Bare Land

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  1. ALTERATIONS: EVERYTHING YOU EVER WANTED TO KNOW __________ Cleveland Doan LLP Strata Lawyers PRESENTED BY SHAWN M. SMITH

  2. THE STRATA PLAN Strata plans come in two types: - conventional (shows buildings: apartments, townhomes or detached homes) - bare land (no buildings shown) Strata plans are divided into three different areas: strata lots, common property and limited common property

  3. THE STRATA PLAN

  4. THE STRATA PLAN

  5. THE STRATA PLAN "common property" means (a)that part of the land and buildings shown on a strata plan that is not part of a strata lot, and (b)pipes, wires, cables, chutes, ducts and other facilities for the passage or provision of water, sewage, drainage, gas, oil, electricity, telephone, radio, television, garbage, heating and cooling systems, or other similar services, if they are located (i) within a floor, wall or ceiling that forms a boundary (A) between a strata lot and another strata lot, (B) between a strata lot and the common property, or (C) between a strata lot or common property and another parcel of land, or (ii) wholly or partially within a strata lot, if they are capable of being and intended to be used in connection with the enjoyment of another strata lot or the common property;

  6. THE STRATA PLAN Certain types of common property (i.e. pipes, wires, ducts, etc.) are defined by their physical location (i.e. within in a boundary wall). "limited common property" "limited common property" means common property designated for the exclusive use of the owners of one or more strata lots; Typically LCP is: - decks, patios, balconies - parking spaces - storage LCP can also be common property that, by its nature, services only one strata lot - Louie v. Strata Plan VR-1323 (2015), 55 C.C.L.I. (5th) 217

  7. THE STRATA PLAN "strata lot" "strata lot" means a lot shown on a strata plan Unless between strata lot and common property is the midway point of the wall, floor or ceiling s.68 SPA the strata plan says otherwise, the boundary Boundary between two strata lots is the midway point of the wall, floor or ceiling. LCP boundaries are determined by physical measurements set out on the plan.

  8. THE STANDARD BYLAWS s.120 SPA except to the extent that contrary bylaws are filed in the Land Title Office (LTO) the Standard Bylaws are the bylaws of the strata corporation. Most strata corporations use the Standard Bylaws when it comes to alterations. Those supplemented s.128 SPA. bylaws can be replaced, amended or

  9. THE STANDARD BYLAWS Standard Bylaw 5 addresses alterations to strata lots and consequential alterations to the common property. Standard Bylaw 6 addresses alterations to the common and limited common property. Both require an owner to obtain written permission before undertaking work. A key difference between the two is that approval under Standard Bylaw 5 cannot be unreasonably withheld. Where approval is withheld the strata council needs to have a justifiable reason for doing so.

  10. THE STANDARD BYLAWS Standard Bylaw 5 captures changes to: (a) the structure of a building; (b) the exterior of a building; (c) chimneys, stairs, balconies or other things attached to the exterior of a building; (d) doors, windows or skylights on the exterior of a building, or that front on the common property; (e) fences, railings or similar structures that enclose a patio, balcony or yard; (f) common property located within the boundaries of a strata lot; (g) those parts of the strata lot which the strata corporation must insure under section 149 of the Act.

  11. THE STANDARD BYLAWS Standard Bylaw 5(1)(g) those parts of the strata lot which the strata corporation must insure under section 149 of the Act. Under s.149 the strata corporation is required to insure: (a) buildings shown on the strata plan, and (b) fixtures built or installed on a strata lot, if the fixtures are built or developer as part of the original construction on the strata lot. installed by the owner

  12. THE STANDARD BYLAWS Regulation 9.1 fixtures includes items attached to a building, including floor electrical and plumbing fixtures, but does not include, if they can be removed building, refrigerators, microwaves, washers, dryers or other items and wall coverings and without stoves, damage dishwashers, to the As a result Bylaw 5(1) applies to work involving: Flooring Cabinets Plumbing fixtures (ie. tubs and showers) Fireplaces Stairs

  13. THE STANDARD BYLAWS BARE LAND STRATA CORPORATIONS: Standard Bylaw 5 does not apply. Absent a registered building scheme, there are no restrictions on what can be built. Can enact bylaws which control what can be built, where it can be built, etc. Cannot restrict things which a building scheme allows - Winchester Resorts Inc. v. Strata Plan KAS2188 (2002), 4 B.C.L.R. (4th) 390.

  14. WHAT IS AN ALTERATION? The consideration by the Ontario Superior Court of Justice in Wentworth Condominium McMahon 2009 CarswellOnt. 1273. term alteration was first given judicial Corporation 198 v. alteration structure . means something that changes the But what does that really mean? What is a change? What is meant by structure?

  15. WHAT IS AN ALTERATION? The Owners, Strata Plan NWS254 v. Hall 2016 BCSC 2363. Here, the work involved the removal and replacement of four windows and the patio door. The replacement of the windows and door did not change the structure of the did not change the structure of the respondent s unit, or the common property respondent s unit, or the common property. I conclude that the replacement of the four windows and the patio door was not an alteration within the meaning of ss.5(1) or 6(1) of the Standard Bylaws requiring the prior approval in writing of the Strata Corporation. Bottom Line: Replacing like for like is not an alteration Bottom Line: Replacing like for like is not an alteration.

  16. WHAT IS AN ALTERATION? Allwest International Equipment Sales Co. v. The Owners, Strata Plan LMS4581 2018 BCCA 187 An alteration is something that changes the building (i.e. makes it different) What is meant by structure doesn t really matter. The change must have an element of materiality to it. Court of Appeal confirmed that cutting a 2 inch hole in a wall was enough to be an alteration.

  17. WHAT IS AN ALTERATION? Allwest has far reaching implications for interior work. Standard Bylaw 5(1)(g) includes within its scope: items attached to a building, including floor and wall coverings and electrical and plumbing fixtures . Almost replacement (like for like) would be caught by it. anything that is not a routine repair or Consider whether that is what owners want.

  18. WHAT IS AN ALTERATION? Some examples of minor things being considered alterations are: BCCRT connect a dishwasher would alter common property. Wilchek v. The Owners, Strata Plan VR 55, 2017 67 Minor plumbing work necessary to BCCRT 184 - painting exterior French doors a different colour was an alteration . Friedrich v. The Owners, Strata Plan K515, 2018

  19. WHAT IS AN ALTERATION? 2018 BCCRT 7 the installation of doorbell cameras and video surveillance cameras alterations. Parnell v. The Owners, Strata Plan VR 2451, were considered drilling of lag bolts into joists to support a medical left system was held to be an alteration because of the impact on the strength of the joists. Boyer v. Downey et al, 2018 BCCRT 156 the

  20. WHAT IS AN ALTERATION? Standard Bylaw 6 common property has limitations when it comes to changes to patios, decks, balconies and yard areas. not alteration (or even an addition or improvement). everything that is done will constitute an much will turn on how the item is constructed or where it is placed.

  21. WHAT IS AN ALTERATION? Term alteration is not uniformly applied when it comes to structures: hot tub is not an alteration - The Owners, Strata Plan LMS4255 v. Newell 2012 BCSC 1542 gazebo-type structure on a patio was an alteration - Giddings et al v. The Owners, Strata Plan BCS 3620, 2018 BCCRT 61 construction alteration or addition or doing a renovation or other work - Zhang v. The Owners, Strata Plan BCS1115 2017 BCCRT 79 of an arbour in a back yard was an

  22. WHAT IS AN ALTERATION? Changes to landscaping generally considered an alteration: planting of trees and bushes on the common property - Wu v. Hu and The Owners, Strata Plan BCS 3579, 2017 BCCRT 81. planting of trees, the removal of a hedge and its replacement with a fence, the construction of patio and the installation of drainage were alterations - Anthony v. Schnapp 2016 BCSC 1839 placement of large vegetable boxes, installing a fence and planting a garden is an alteration - Friedrich v. The Owners, Strata Plan K515, 2018 BCCRT 18

  23. SPECIAL KINDS OF ALTERATIONS Habitable residential strata lot which can be lived in, but does not include patios, balconies, garages, parking stalls or storage areas other than closet space. area is defined as the area of a It entitlement which in turn determines its share of the common expenses. is used to determine each strata lot s unit Those considered habitable area are identified on the strata plan. portions of the strata lot which are not

  24. SPECIAL KINDS OF ALTERATIONS s.70(4) of the SPA Subject to the regulations, if an owner wishes to increase or decrease the habitable part of the area of a residential strata lot, by making a nonhabitable part of the strata lot habitable and the unit entitlement of the strata lot is calculated on the basis of habitable area or on the basis of square footage in accordance with section 1 of the Condominium Act , the owner must: (a) Entitlement under section 261, and seek an amendment to the Schedule of Unit (b) before making the change. obtain the unanimous vote referred to in section 261

  25. SPECIAL KINDS OF ALTERATIONS Regulation 5.1(2) exempts an owner from the unanimous vote requirement where the increase to the habitable area, combined with any previous increase to the habitable area, is: less than 10% of the habitable area of the strata lot and less than 20 square metres. The prior written approval of the strata corporation, as set out in the bylaws, is still required. Typical situation where s.70(4) applies is enclosing a garage or part of it

  26. SPECIAL KINDS OF ALTERATIONS Enclosing common or limited common property (i.e. a balcony) does not trigger a change in the unit entitlement. Unit entitlement is based on the habitable area of the strata lot, not areas outside it. Changing the way in which common property is used by enclosing it does not change its nature; it is still common property.

  27. SPECIAL KINDS OF ALTERATIONS Removing a wall between two strata lots s.70(1) and (2) of the SPA. Permission cannot be refused so long as the work complies with: (i) a building regulation within the meaning of the Building Act,(i.e. the Building Code); and (ii) any applicable municipal or regional district bylaws Must not interfere with the provision of utilities or other services to any other strata lot or to the common property. Does not create a single new strata lot.

  28. HUMAN RIGHTS CODE 8 (1) justification, A person must not, without a bona fide and reasonable (a) deny to a person or class of persons any accommodation, service or facility customarily available to the public, or (b) discriminate against a person or class of persons regarding any accommodation, customarily available to the public service or facility because of the race, colour, ancestry, place of origin, religion, marital status, family status, physical or mental disability, sex, sexual orientation, gender identity or expression, or age of that person or class of persons

  29. HUMAN RIGHTS CODE The Code applies to strata corporations because they are providing services - Konieczna v. The Owners Strata Plan NW2489 2003 BCHRT 38. Strata corporation is obligated to accommodate a person with a disability to the point of undue hardship see Mahoney obo Holowaychuk v. The Owners, Strata Plan NW332 et al 2008 BCHRT 274. each party has certain obligations with respect to establishing the need for the accommodation accommodation options - Leary v. Strata Plan VR1001, 2016 BCHRT 139 and alternative

  30. HUMAN RIGHTS CODE When considering a request for permission involving the Code, the Tribunal has said: I disagree with the submission of the Strata Council that it cannot consider specific or special needs of its unit owners. However, I agree with its submission Calderoni follow the procedure set out in its by-laws, regarding a proposed renovation, is not a contravention of the Code. In my view, the Strata Council has a duty to ensure that it bases its review of a proposed modification of a unit on adequate and reliable information and plans. that requiring Mrs. Calderoni v. Strata Council Plan No. K6 2009 BCHRT 10

  31. GIVING PERMISSION Standard Bylaws 5 and 6 both refer to the permission of the strata corporation. In most cases that means the permission of the strata council. Under ss.4 and 26 of the SPA the strata council performs the powers and duties of the strata corporation. s.71 - the strata corporation must not make a significant change in the use use or appearance appearance of common property unless approved by a vote

  32. GIVING PERMISSION When is an alteration significant ? Factors to consider: (1) visibility or non-visibility to residents and its visibility or non-visibility towards the general public; A change would be more significant based on its (2) the use or enjoyment of a unit or a number of units or an existing benefit of a unit or units; Whether the change to the common property affects (3) result of the changed use? Is there a direct interference or disruption as a

  33. GIVING PERMISSION (4) value of the unit? Does the change impact on the marketability or (5) significant along with the general use, such as whether it is commercial, residential or mixed use; and The number of units in the building may be (6) corporation has governed itself in the past and what it has allowed. For example, has it permitted similar changes in the past? Consideration should be given as to how the strata

  34. GIVING PERMISSION Examples of significant changes: the installation of garden lighting - O Neill v. The Owners, Strata Plan LMS 898, 2018 BCCRT 20; the placement of a gazebo on a patio - Giddings et al v. The Owners, Strata Plan BCS 3620, 2018 BCCRT 61; extension of a deck and installation of railings Foley v. The Owners, Strata Plan VR387 2014 BCSC 1333. Planting of garden beds and fruit trees, removing a hedge and constructing a fence Anthony v. Schnapp 2016 BCSC 1839

  35. GIVING PERMISSION Requests for permission can be made in writing or by asking for a hearing under s.34.1 of the SPA. Under s.34.1 a hearing must be held within 4 weeks and written decision provided within 1 week afterwards. No deadline to respond to a written request. Two month delay was okay where there was a reason for it - Grant v. The Owners, Strata Plan BCS 337, 2018 BCCRT 70 Council cannot call an emergency meeting to approve a request. An owner s lack of planning is not an emergency.

  36. GIVING PERMISSION Standard Bylaws require approval to be in writing writing Be very clear and detailed about what was approved. It helps when the owner expands the scope of work. Council has discretion to impose conditions even though the bylaws don t say so - The Owners, Strata Plan BCS 983 v. Muir, 2018 BCCRT 157 Nonetheless, the bylaws should list the conditions so owners are aware in advance and council has some parameters within which to work.

  37. GIVING PERMISSION Some of the major things to be concerned about: Structural changes (are they safe?) Is a building permit required? (Onus should be placed on the owner to prove one is not required) Who is doing electrical and plumbing work? Flooring noise impact and how to minimize Is a change to the development permit required?

  38. GIVING PERMISSION Some examples of when a building permit is required when you: Make alterations, additions or repairs to an existing building Complete a previously unfinished area in an existing building, Make interior structural renovations Remodel or construct a deck Install or alter plumbing within a building Install a new chimney or fireplace Enclose your carport or change your garage to living space (Regional District of Nanaimo website)

  39. GIVING PERMISSION Some examples of when a building permit is not not required for: Installing cupboards Roofing repairs or replacements (providing that no structural changes are made) Exterior finish repair or replacement (e.g., stucco or siding, providing that no structural changes are made) Landscaping or sidewalks Fences less than 2 meters in height (Regional District of Nanaimo website)

  40. GIVING PERMISSION Three alterations: areas of concern re common property Builders Liens Worksafe coverage Warranties for previous work (the alteration could limit the applicability of warranties for building envelope repairs and other work)

  41. GIVING PERMISSION Common property is owned by all owners as tenants-in- common - s.66 SPA Strata corporation controls the common property on behalf of the owners s.3 SPA Since there is not a separate title for common property, liens for work done on or to the common property get registered against title to the strata lots Where coverage, they are liable for the costs related to an injury suffered by a worker. someone employs trades without Worksafe

  42. GIVING PERMISSION Does some sort of exclusive use designation need to accompany the permission? Friedrich v. The Owners, Strata Plan K515, 2018 BCCRT 184 the owner did extensive improvements to the yard behind their strata lot Effectively enclosed the area with plantings and a fence CRT designation ordered the owner to apply for exclusive use

  43. GIVING PERMISSION Exclusive use designated in one of two ways: Short term exclusive use under s.76 SPA Must be renewed annually Can be revoked on reasonable notice Is granted to a person, not a strata lot Limited common property designation under s.74 SPA Approved by vote at AGM/SGM Carries over to the next owner

  44. ASSUMPTION OF LIABILITY Under the Standard Bylaws, a strata corporation can require an owner to: agree, expenses relating to the alteration. in writing, to take responsibility for any Commonly referred to as an Assumption of Liability Agreement (ALA) or an Indemnity Agreement . Purpose is to ensure that the strata corporation does not incur additional repair and maintenance costs as a result of the alteration.

  45. ASSUMPTION OF LIABILITY Refusal to sign an ALA is a breach of the strata corporation s bylaws Corner v. The Owners, Strata Plan K833 2017 BCCRT 89. Failure to take action where an owner doesn t sign one when required can lead to the strata corporation being responsible for the costs to repair -Allard v. The Owners, Strata Plan VIS 962, 2017 BCCRT 111

  46. ASSUMPTION OF LIABILITY Critical when the alteration relates to or impacts an area which the strata corporation is obligated to repair and maintain under the SPA or its bylaws. Not always necessary for alterations to a strata lot interior since the owner is already responsible to repair and maintain the strata lot. They cannot make the owner responsible for repairs and maintenance for which the strata corporation would otherwise be responsible.

  47. ASSUMPTION OF LIABILITY The existence of an ALA has to be disclosed on a Form B. Item (c) requires: Are there any agreements under which the owner of the strata lot described above takes responsibility for expenses relating to alterations to the strata lot, the common property or the common assets? __no __ yes [attach copy of all agreements] A failure to disclose an ALA on the Form B will make strata unable to make a new owner responsible for costs related to an alteration s.59(5) SPA

  48. ASSUMPTION OF LIABILITY Form B and s.59 would appear to imply that a new owner is automatically bound by the terms of the ALA signed by the prior owner. However, that may not be the case. Easement cases: positive covenants only binding on the parties to the original agreement, not successor owners; unless those successor owners have agreed in writing to be bound by those agreements.

  49. ASSUMPTION OF LIABILITY Two ways to address this potential problem: new owners sign the assumption agreement; or have a procedure (and bylaw) in place to have for additional costs where that was term of the original approval. pass a bylaw which makes owners responsible

  50. REPAIRS AND MAINTENANCE ALA does not make an owner responsible to actually carry out repairs, only to reimburse the strata for the costs of doing so. Making an owner responsible for repairs requires an amendment to the bylaws. In the case of common property, s.72(2)(b) does not allow that.

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