Strata Management- How to wind down a Strata Corporation

How do strata owners terminate a strata corporation?

We are seeing more and more Vancouver area strata corporations being approached by developers looking to redevelop their strata property. Very often these strata buildings are older, are in need of some repair, or simply don’t maximize their zoning potential.

For example, there are quite a few 30-40 year old 4-7 storey condo building in Vancouver’s West End that are now zoned for 20-50 storey residential buildings. We are also seeing the same thing near Metrotown in Burnaby, in New Westminster, and even in White Rock! These strata buildings are perfect for developers!

Since July 2016, strata corporations now have the ability to wind down a strata with only an 80% vote of the owners. Unlike other resolutions, this 80% must include all registered owners, not only owners present at an AGM or SGM. In the past, winding down a strata corporation required 100% unanimous vote, which was very difficult to obtain, and almost never went through.

Another thing to note is that a full 32 days are required to give notice for such a resolution to be voted on, unlike the 20 day notice required for strata AGM’s and SGM’s.

Selling your strata lot to a developer and winding down the strata corporation can be a great way to make large returns in the real estate investment game. If you’re thinking that your strata building might have an opportunity to do this, please reach out to our strata management and real estate company, and we would be happy to give you some advice.

 

 

Chris Stepchuk

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