Menu

Market Wisdom

ChatGPT Image Apr 7, 2025, 07_49_46 PM

Understanding Parking and Storage in Strata Properties: Common Property, Limited Common Property, and Strata Lots

0

When purchasing a strata property in British Columbia, one of the most critical considerations is the ownership and use of parking spaces and storage lockers. These spaces can be classified as common property, limited common property, part of a strata lot, or a separate strata lot. Understanding the distinctions is essential to avoid disputes and ensure proper use. Below is a breakdown of these classifications and how they impact ownership and rights.

  1. Common Property

Common property refers to all areas of the strata corporation that are not designated as part of a strata lot or limited common property. This typically includes:

  • Exterior walls, roofs, and shared plumbing systems
  • Hallways, elevators, and lobbies
  • Amenities such as pools, gyms, and gardens
  • Some parking and storage areas

Since common property is owned collectively by all strata owners, decisions regarding its use, maintenance, or modifications must be made through the strata council or by a vote of all owners. Parking and storage spaces designated as common property may be assigned to owners on a short-term or long-term basis by the strata corporation, but ownership remains with the strata.

  1. Limited Common Property (LCP)

Limited common property is a specific type of common property that is designated for the exclusive use of a particular strata lot or group of strata lots. Examples include:

  • Balconies and patios assigned to specific units
  • Parking stalls or storage lockers reserved for certain units

LCP remains under the ownership of the strata corporation, but the designated unit owners have exclusive rights to use it. The maintenance responsibilities for LCP are generally assigned to the strata lot owners who benefit from it, but significant repairs or alterations still require approval from the strata corporation.

  1. Part of a Strata Lot

In some cases, a parking stall or storage locker is legally designated as part of a specific strata lot. This means:

  • The owner of the strata lot has full ownership rights over the parking or storage space
  • It is included in the square footage of the strata unit
  • It can be sold, transferred, or mortgaged along with the unit

If a parking or storage space is part of a strata lot, it is considered private property, and the owner has control over its use. However, any alterations must still comply with the strata bylaws and regulations.

  1. Separate Strata Lot

A parking stall or storage locker may also be designated as a separate strata lot. In this case:

  • It has its own strata lot number and may have its own property taxes and strata fees
  • It can be bought and sold independently of a residential strata unit (unless restrictions are in place)
  • It may be subject to different bylaws compared to those governing residential units

Separate strata lots for parking and storage are more common in high-density developments where ownership of parking spaces is treated as a separate investment or amenity.

  1. Parts of a Strata Lot with Different Uses

Some strata units have unique configurations where different parts of the unit serve different purposes. For example:

  • A townhouse with a garage that is legally part of the strata lot but has specific usage restrictions
  • A commercial strata unit with a designated customer parking area included as part of the strata lot

In these cases, the rules governing the use of different sections of the strata lot are typically outlined in the strata bylaws and registered strata plans.

Key Takeaways on the Understanding of the Terms and Types of Strata Property

  • Before purchasing a strata property, it is essential to review the strata plan, bylaws, and other legal documents to confirm how parking and storage spaces are designated. Some key questions to ask include:
  • Who owns the parking or storage space? Is it part of the strata lot, a separate strata lot, limited common property, or common property?
  • What are the assignment rules? If the space is common property, does the strata council control assignments?
  • Are there any restrictions? Are there rules regarding who can use the space, whether it can be leased, or if it can be sold separately?
  • Who is responsible for maintenance? If the space is LCP, does the owner or the strata corporation handle upkeep?

Understanding the differences between common property, limited common property, and strata lots in a strata development is essential for making informed decisions about parking and storage. Since each strata corporation has its own rules and regulations, buyers should carefully review the strata documents and consult a real estate professional to avoid misunderstandings. Proper due diligence ensures that buyers secure the rights they expect and prevents disputes over property usage in the future.

b5a8a946-52c1-40c7-bcf2-fbd0474cc6f6

What are the Required Strata Documents When Purchasing a Home in British Columbia

0

When purchasing a strata property in British Columbia—such as a condominium, townhouse, or other shared-property development—it is crucial to review the strata documents before finalizing an offer. These documents provide essential insights into the financial health, management, and overall condition of the strata corporation. Below is an overview of the strata documents typically included in the purchase process.

  1. Form B: Information Certificate

The Form B Information Certificate is one of the most critical documents for prospective buyers. It provides a snapshot of the strata corporation’s financial status, management details, and any outstanding issues that could impact the buyer. Key details in the Form B include:

  • Monthly strata fees 
  • Any special levies currently approved
  • The amount in the Contingency Reserve Fund (CRF) that have been confirmed to date
  • Any outstanding fines or fees associated with the unit
  • Any resolutions pending to be approved
  • Pending litigation involving the strata
  • The most recent depreciation report (if available)
  • The type of parking and storage and allocation if any

  1. Strata Bylaws and Rules

The bylaws and rules govern the day-to-day operations of the strata property. These documents outline:

  • Use and occupancy restrictions (e.g., short-term rentals, noise regulations, pet policies)
  • Bylaws regarding renovations and alterations to units
  • Parking and storage allocation policies
  • Dispute resolution procedures between owners
  • Governance structure and voting procedures for decision-making

Understanding these rules ensures that buyers are aware of any restrictions that may impact their lifestyle or investment goals.

  1. Strata Meeting Minutes (At Least Two Years)

Meeting minutes from strata council meetings, annual general meetings (AGMs), and special general meetings (SGMs) provide insight into the internal workings of the strata. They highlight:

  • Discussions about maintenance and repairs
  • Financial concerns and upcoming special levies
  • Disputes or complaints within the strata community
  • Future projects and potential assessments

Reviewing past meeting minutes can help buyers assess the overall management and condition of the property.

  1. Strata Financial Statements and Budget

These documents reveal the financial health of the strata corporation. They include:

  • The annual operating budget
  • Income and expense reports
  • The current balance of the operating fund and CRF
  • Any outstanding debts or loans

A well-managed strata should have a healthy CRF and a balanced operating budget to cover regular maintenance and unexpected repairs.

  1. Depreciation Report

A depreciation report is a long-term maintenance and financial planning document. It assesses the expected lifespan of major building components (e.g., roof, elevators, plumbing) and estimates future costs for repair or replacement. Strata corporations with fewer than five units are not required to have this report, and others may choose to waive it, but its absence can indicate potential financial risks. A report is required to be done every 5 years. 

  1. Insurance Certificate

This document outlines the strata corporation’s insurance policy, including:

  • Coverage for the building’s common property
  • Liability insurance
  • Deductibles for claims (which owners may be responsible for in some cases)

Buyers should compare the strata’s insurance policy with their personal insurance needs to ensure adequate coverage.

  1. Engineer and Consultant Reports (If Available)

Some strata properties may have engineering or consultant reports related to structural integrity, building envelope issues, or other concerns. These reports provide an independent assessment of potential maintenance or repair needs.

  1. Special Assessments and Levies

Any upcoming or potential special assessments should be disclosed within the strata documents. These are additional payments required from owners to cover unexpected repairs or major projects not included in the regular budget.

  1. Legal Correspondence or Notices

If the strata corporation is involved in any legal disputes, this information is crucial for buyers. Lawsuits or legal claims can result in significant financial liabilities for owners if settlements or legal fees need to be covered through special assessments.

Reviewing strata documents thoroughly before purchasing a home in British Columbia helps buyers make informed decisions and avoid unexpected financial or legal issues. It is advisable to work with a real estate professional or legal expert to interpret these documents effectively. A well-managed strata with strong financials and transparent governance contributes to a stable and desirable home investment.