Dear Tony: Our strata council presented a series of agreements to our owners at a recent annual general meeting that raised a number of serious questions.
Our manager had brought a number of requested easements from a developer who is building on the property next door and the resolutions, we discovered, were written by either a council member or our property manager.
The problem with the resolutions and proposed easements is that the language of what we were being asked to vote on and the outcome did not match.
In several resolutions, we were simply asked to approve the easement without the details of the agreement and without the benefit of the strata lawyer being present to explain the implications of each of these agreements.
I was unpopular with the council and the manager at the meeting, but successfully moved to have all of the easements deferred to a future meeting, until all of the information was available for our owners to review and seek legal opinions before we next vote.
Is this a normal practice? We were advised by our manager that council had reviewed and negotiated everything and it was routine, but none of our council members are lawyers and no one considered the future implications.
More troubling was the lack of disclosure from the manager and the council president, who declined to answer whether the strata or anyone was being paid.
Brenda C., Burnaby
Development of neighbouring property is a condition that potentially affects every property owner in British Columbia, and strata corporations need to remember that, in addition to their strata lots, they are also the shared owners of a larger piece of property.
An easement is an interest in land owned by another person, consisting of the right to use or control the land, or an area above or below it, for a specific limited purpose of time and conditions.
Your property is a perfect example. The developer is proposing a highrise next to your mid-rise garden community. Construction of the adjacent parking garages might result in property movement, with potential damaging effects, if certain steps are not managed.
The developer has approached your strata requesting permission for an underpinning and anchor agreement to secure both sites.
This is necessary during excavation and construction, and for future maintenance and access requirements, and in most situations, it鈥檚 the most economical method for the developer.
Seems like a simple request and negotiation, right?
Not at all. The simplest easement could impose conditions that reach far into the future of your property ownership, and might even affect property values and your ability to wind up your strata corporation or future development of your site.
Your strata corporation does not have to agree. Every property has unique conditions, and any easement for access, construction and future maintenance, the terms and conditions of the easement and the related costs require close scrutiny by the lawyer representing only your strata corporation.
If someone approaches your strata requesting an agreement, it obviously has value for them.
The expectation is that your strata council should be able to confirm that all of the legal, engineering and related construction costs will be reimbursed by the developer, and the proposed easements will be closely reviewed to analyze what the impact would be on your property and how these easements might affect the future use of your property and its value.
Your strata council should also be investigating the current value of the easement. It is possible there are access or property-use requirements that have significant value.
You are essentially giving away some of your property rights, so why not be paid for them?
This is the time for a business negotiation.
Remember, the easement is rarely for your benefit; the neighbouring property holder needs some concessions from you to develop and sell.
I would not vote in favour of any proposed easement without the benefit of legal advice and the complete disclosure of the exact wording of the easement.
Your strata manager should be recommending getting independent legal advice on the easements and the resolutions.
Strata managers may be in violation of the Legal Professions Act in sa国际传媒 if they are writing resolutions, constitutions or bylaws and being paid a fee, and management companies are charging through the service agreement.
If the strata manager has received any fees from the developer or a third party not fully disclosed to the strata corporation, they are also potentially in violation of the Real Estate Services Act. Complaints can be filed online through the Law Society of sa国际传媒 (lawsociety.bc.ca), or the Real Estate Council of sa国际传媒 (recbc.ca).
Tony Gioventu is executive director of the Condominium Home Owners Association
