Rental Restrictions no more! Well, not exactly.... here's the latest update regarding the Strata Property Act (SPA) provided by Spagnuolo & Company:
There
has been a shortage of rental units for years in British Columbia. In
order to address this, the Provincial Government recently passed
legislation dealing with the rental provisions of the Strata Property
Act ("SPA"). Under
the old section 143 of the SPA, a rental restriction bylaw passed by a
Strata Corporation did not apply to that strata lot until the strata
lot was conveyed by the first owner after the developer or until the
date that the rental period disclosed in the RDS expired, whichever was
earlier. Essentially the first owner was always able to rent out the
strata unit until the expiration of the rental period disclosed in the
RDS, but not subsequent owners. Pursuant
to the amended Section 143 of the SPA, for a new RDS filed after
December 31, 2009, a rental restriction bylaw will not apply to that
strata lot until the date that the rental period disclosed in the RDS
expires. This expiration is usually a long time away: perhaps 99 years
or even indefinite. Therefore,
practically speaking, starting January 1, 2010, a new RDS will benefit
every subsequent owner of that strata lot rather than just the first
owner after the developer. All future owners will be able to rent the
strata lot without being subject to any rental restriction bylaw for as
long as the rental period disclosed in the new RDS allows them to. This does not apply to strata buildings where the RDS was filed prior to Dec. 31, 2009. Call or Email me with any questions.