STRATA WATCH! Mike Mangan Check Election Dates in a Phased Strata Development n a phased strata development, a developer adds buildings to a project over time. As each phase proceeds, the developer deposits a strata plan for that phase at the Land Title Office. Why? I • Under Part 13 of the Strata Property Act (which replaced the Condominium Act on July 1, 2000), the developer of a phased development must file a strata plan in successive phases.1 • Part 2 of the Condominium Act contained similar requirements.2 Note: 1. Anyone considering buying a strata unit in a phased strata development where the developer has not yet proceeded with every phase—that is, where a strata plan is not yet filed for every phase—should know about a document called the Phased Strata Plan Declaration (for simplicity: Form P).3 2. If the developer commenced the project under the Condominium Act, the document is called the Declaration of Intention to Create a Strata Plan by Phased Development (for simplicity: Form E).4 Form P and its predecessor Form E both contain important information including: • a schedule showing the number of phases and the order in which they will be deposited; 68 • a schedule showing the estimated date for the beginning and completion of construction of each phase; and The Strata Property Act and the former Condominium Act contain similar schemes governing election dates. • the election date for each phase. Here, briefly, is what happens under the Strata Property Act when a developer has begun a phased development by depositing the appropriate form with Phase One of a phased strata plan. An election date is the date by which a developer must decide whether or not to proceed with a particular phase of the project; before that specified date, a developer may bail out of a future phase. Where a developer elects not to proceed with a phase, the legislation may require the developer to compensate the strata corporation for certain matters, e.g., to contribute to the expense of common facilities that are already built or, in some cases, to complete particular work on other common facilities. • If a developer wishes not to proceed with a particular phase, the Strata Property Act requires that the developer notify in writing the strata corporation and the approving officer of the A developer must register the Form P or Form E, as the case may be, with the first phase of the strata plan at the Land Title Office.5 In addition, under the Strata Property Act, a developer who intends to build a development in phases must first obtain the approval of an approving officer, using Form P. In most phased developments, the developer is required to give each prospective buyer a prospectus or disclosure statement. The buyer will find a copy of Form P or Form E in that document. The election date is one of the most important features of the forms. Form P or Form E expresses a developer’s intention to construct the development in phases. It is not a promise. Until the election date for each phase, the developer may elect not to build that phase. The Scrivener Volume 13 Number 2 June 2004 developer’s election not to proceed. 6 The developer must also register a similar notice against title to the developer’s remainder parcel—the land previously set aside for the future phase. • Alternatively, under the Strata Property Act, a developer may amend an election date in the Form P.7 To extend the election date up to one year, the developer must apply to the approving officer, who may grant only one extension. For all other extensions, the developer must apply to the Supreme Court of British Columbia. Mike Mangan is a Vancouver lawyer who, among other things, advises strata corporations and condominium owners in his law practice. Mr. Mangan is an Adjunct Professor of Law in the Faculty of Law at the University of British Columbia, where he teaches real estate law. He also lectures in the Real Estate Division of the Sauder School of Business (formerly the Faculty of Commerce and Business Administration) at UBC. Voice: 604 685-2282 1 2 Strata Property Act, S.B.C. 1998, c. 43 Condominium Act, R.S.B.C. 1996, c. 64, Part 2 3 Strata Property Regulation, B.C. Reg. 43/2000, Form P, Phased Strata Plan Declaration 4 Condominium Act, Forms 5 Strata Property Act, s. 221; Condominium Act, s. 77 6 Strata Property Act, s. 235 7 Strata Property Act, s. 232 8 Strata Property Act, s. 231 9 Condominium Act, s. 79(1) 10 Condominium Act, s. 78(7) • If a developer fails to give written notice on time that he elects not to proceed or to otherwise amend the election date, the Strata Property Act conclusively deems the developer to have elected to proceed with that phase as set out in Form P.8 In other words, if the developer fails to elect to quit the next phase by the required date or fails to otherwise extend the election date by amending Form P, the developer is bound to proceed. The former Condominium Act contains substantially the same scheme. • If the developer elects not to proceed with a phase, the Condominium Act requires the developer to inform the strata corporation in writing and file a notice to that effect on title.9 • If a developer fails to give notice electing not to proceed, the Condominium Act deems that the developer has elected to continue with the project.10 For more detailed information about phased strata developments and answers to many other condominium questions, see The Condominium Manual: A Comprehensive Guide to the Strata Property Act, 2nd ed., by Mike Mangan, recently published by the British Columbia Real Estate Association. Readers may obtain a copy by calling the British Columbia Real Estate Association at 604 683-7702, by fax at 604 683-8601, by ordering via the BCREA Website at www.bcrea.bc.ca, or through select bookstores in the Lower Mainland. ▲ Volume 13 Number 2 June 2004 The Scrivener 69
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