New townhouse BEFORE Strata is registered
 

Hi

I'm looking to purchase a townhouse before a strata plan is registered (obviously new). Is there anything I can ask for in my subjects that can be gradnfathered when a strata is registered?

i.e. can I make ensure that my townhouse can be rented out? In case the strata ever decides to not allow renting?

Thanks

I bought a townhouse before it was built as well.

Are yous sure that a strata has not been chosen yet? Like, the sale people/developer, etc have told you NO strata company has been assigned yet?

Also....is this your first time buying?

As I understand it, and this is just based on a very limited reading of the strata act, and what I've picked up over the years, but all stratas start out with the base law as set out by the government. Once its built, and people move in, they hold a general meeting and elect a council.

That council(and subsequent) then starts modifying the rules to fit the needs and interests of the owners(usually about 20% of them actually if pareto's law holds true). So as I understand it, everything starts out as rental friendly and 1 dog or cat. To change the rental bylaw, I think they have to give you a year before that change can take effect, or you get grandfathered in as an original owner or it becomes limited or what have you.

These are all questions you need to ask as you are working with your pre-sale, or with a realtor if you are buying a pre-existing unit.

For instance, in 2004 I rented a condo in East Van. He had owned the place for ever and a day and was grandfathered in on being allowed to rent. In the meantime, the rules for the building had changed and rentals were no longer allowed. As such, I was the only tenant in the building(according to the weird dude down the hall..honestly, I didn't care about building politics as much as he thought I should).

If you are buying a presale, as the first owner you are grandfathered even once strata forms and amends the bylaw to restrict/ban rentals. Once you sell and a new owner is registered on title they will follow the current bylaws in place.
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1. I am a first time home buyer
2. Not sure if this is a "pre-sale", units are pretty much done and ready to be lived in soon.
3. Realtor Remarks: non-registered strata property - contact L.R. Does this help?
4. I'm getting lost in the Strata Act, if you can help me out that would be great!
5. Bonka: Can you please verify your statement? Thanks

bonka is correct.

what u are referring to is by laws, thats decided once council is elected..which would entail rental restrictions etc.

1. That is irrelevent for the purposes of the rental bylaw. Do make sure you utilize any first time homebuyer incentives like the HBTC from Revenue Canada on the following year's tax return.

3. Each individual strata unit has not been registered with land titles - that will happen once a buyer takes ownership of said strata unit and title is transferred to them.

5. Read the disclosure statement it should have an attached rental disclosure form in the schedule A addendum outlining rental guidelines (none/nil) and expiry of the grandfathered rental term (usually 99yrs). That's the form that tells you that you are ok to rent irregardless of amended bylaws as long as you remain the original owner of a new development and are within the expiry date set out on the disclosure form. In my experience I have not come across any new development where it was anything but rentals allowed with no restrictions.

Since pets weren't mentioned and it's a big thing for buyers pets are grandfathered (other than breed type, size, weight that's set out in the initial disclosure statement) ONLY up until the end of the pet's life. If you plan to replace said pet, you will have to conform to the current bylaws.

Congrats on your purchase :)

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If this development is mostly completed, it should already have a management company.

"Realtor Remarks: non-registered strata property - contact L.R." this confuses me....it sounds like you are getting this from the mls listing. Do you have a Realtor? Have you contacted the realtor selling? If you do, they should be able to answer all your questions.

I think what you mean is a strata BYLAW, not a strata plan. Strata plans is the physical plan (square footage) of the property itself.

Anyways, I'm assuming what happened with this property you're speaking of is it is being listed by either the developer's agent or this is an assignment deal hence it asked to call LR. Non-registered strata means the building itself hasn't completed (ready for live in) and is still requiring/waiting for land title registration. So yes it is still considered pre-sale.

Strata council probably hasn't been formed yet so pretty much anything goes if you are the FIRST original owner. Anything that gets passed after strata forms (pet/rental/age restrictions etc) will need to be followed by the next owner. and just a side note: Most presales nowadays (if not majority) will allow rentals (which you will find in the rental disclosure). The only restriction a building would put in place for a rentals would be the length (minimum 6 months) to shy away from "strangers" going in and out of the building. It's a safety thing..but a lot of people get away with it because nobody reports it.

Those "furnished" vacation rentals type of properties you'll find online are usually breaking the rules when they offer daily rates or monthly rates kinda thing.

Anyways..GOOD LUCK!