It’s official: Strata reigns supreme

Posted on May 24, 2019 by DAN McLENNAN

Posted in STRATA LIVING

MLS® data confirms that the ratio of sales of detached homes compared to strata has flipped in only five years.

Our infograph shows that in 2015, sales of single-family detached homes represented 60 per cent of Fraser Valley’s main residential market. The combined sales of townhomes and apartments picked up 40 per cent. In comparison to year-to-date sales for 2019, that ratio has now reversed. Combined sales of attached homes now garner 60.4 per cent of our market and detached, 39.6 per cent.

Fraser Valley REALTORS® have been watching the shift towards multi-family housing units for many years now. A myriad of factors impact housing demand, from geography and land scarcity, to population growth and economic conditions. The geographical limitations of being fenced in by the North Shore Mountains, the Strait of Georgia, the border with the United States and the Agricultural Land Reserve in the Fraser Valley, have necessitated a shift in the housing stock toward higher density projects.

The other main reason behind the shift is affordability. Since the introduction of the federal government’s mortgage stress test January of last year, the typical borrower now qualifies for about 18 to 20 per cent less than they used to. Taking a typical detached home in the Fraser Valley as an example, instead of being able to afford a home that costs $964,600 (the benchmark price in April), they can now only afford a home that costs a little over $735,000.

For buyers, the only option is to save more money or consider buying a smaller or less expensive home. The trend towards attached is here to stay. Given the rapidly growing population of the Fraser Valley, a push for increased density as land supply becomes even more constrained is anticipated. That means that attached housing will become an increasingly important part of the Fraser Valley market and we expect that its share of sales will continue to grow.

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RENTING OUT STRATA UNITS

Posted on February 5, 2018 by DAN McLENNAN

Rentals Allowed by a "Form J: the Rental Disclosure Statement"

A "Form J: the Rental Disclosure Statement" also determines whether strata lot owners can rent their lots despite rental restriction bylaws. The Form J:

describes the strata lots that may be rented and
sets out the date during which the rentals may occur

Under the Strata Property Act, Owner Developers must provide prospective purchasers with a Form J that has been filed with the Superintendent of Real Estate, if the Owner Developer intends to rent or preserve the right to rent any of the residential strata lots.

Rental disclosure statements are only filed by the Owner Developer and are completed individually for each strata lot.

Strata lot owners may have different rights to rent their lots depending on when the Form J was filed.

For Form Js filed on or before December 31, 2009, a lot that has been designated as a rental lot by the Owner Developer on a Form J remains eligible as a rental lot – regardless of rental restriction bylaws – until either:

the lot is sold or transferred by the first purchaser or
the date set out on the Form J expires (whichever occurs first)

For the Owner Developer or the first purchaser from the Owner Developer, the effect of the Form J is to preserve the right to rent the strata lot for the length of time set out in the Form J, despite any subsequent rental restriction bylaws.

However, a purchaser who buys the strata lot from someone other than the Owner Developer does not have a right to rent the strata lot. For the new owners, a strata lot may only be rented if there is no rental restriction bylaw or the owner is permitted to rent despite a rental restriction bylaw because of:

the family member exception
a determination of hardship by the strata council
the provision that delays the application of a rental restriction bylaw. The Strata Property Act gives owners who are renting time to comply with a new rental restriction bylaw

For “Form J: Rental Disclosure Statements” filed on or after January 1, 2010 there are different rules. The owner-developer can now designate that a strata lot can be rented to a date specified on the Form J.

For these strata lots, a strata lot eligible as a rental remains designated as eligible until the date the rental period expires. The strata lot is not affected by any subsequent rental restriction bylaws until the rental period date on the Form J expires.

This means the right to rent a strata lot can continue from one purchaser to the next as long as the rental period on the Form J remains unexpired. This provision only applies to "Form J: Rental Disclosure Statements" filed on or after January 1, 2010.

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Noisy Neighbours: Condo Noise Complaints

Posted on April 10, 2017 by DAN McLENNAN

Posted in STRATA LIVING

Do you have noisy neighbours disturbing your peace? Or perhaps you want to play music but are getting complaints?

Of all the compromises that come with condo ownership, living with noise might be the biggest. Although most strata corporations have bylaws restricting noise and other forms of nuisance, it can be difficult for owners and strata councils to figure out when the noises of everyday life cross the line and become legitimate complaints.

From a legal perspective, making a noise that impacts another person’s quiet enjoyment of their property can be considered nuisance. The challenging comes down to figuring out what level or noise or interference is reasonable. We all experience life subjectively and what bothers one person may be entirely acceptable to another.

If you believe that a neighbour’s noise is affecting your ability to enjoy your home, look for ways to create evidence in support of your noise complaint. Take recordings of the noise if you can. Keep a journal of the timing, frequency and nature of the disturbances.

The simplest and most cost-effective way to resolve noise disputes is to work with neighbours and strata council to determine whether the noise is normal and to look for ways to minimize the disturbance. If extending an olive branch doesn’t work, you may have legal remedies. Most of the time, owners have a right to the quiet enjoyment of their property. If you believe that your neighbour or your strata corporation are failing to respect your rights, or are unfairly targeting you, speak with a strata lawyer to review your matter and provide you with qualified legal advice.

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