Investor: Condo Investors Stripped Of Rights By B.C.

A strata bylaw was upheld by the Court of Appeals which stated that only one unit is permitted to be rented at any one time within a Vancouver condo building.

The property concerned is 1445 Marpole Avenue, Hycroft Towers, in Vancouver.

The appeal was lodged by four family member investors who, together, own three units in the building. Although their application had been rejected by the strata council, they had formerly rented out one of the three units. The act was in violation of the strata bylaws, which was sustained by the ruling.

According to one investor, there is nothing the family 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 stated. “It’s always the owner’s responsibility to understand the rules and regulations and adhere to them.”

It is a notable case that points out to the issue of thoroughly reading strata agreements before selling.

Most homeowners opt to keep properties while buying additional real estate with the intent of renting them out. However, as proven in this case, the practice isn’t as rosy.

As Mangat pointed out, property purchasers possess a “bundle of rights,” which includes the right of possession, control, exclusion, enjoyment disposition.

According to him, the ruling of this particular case was as a result of British Columbia’s government prioritizing the rights of the collective condo board over that of the individual owner.

“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.