For some time now, and since the new Strata Property Act was brought in in July 2000, any Buyers  of Strata properties had to abide by the Bylaws regulating the rental of strata units. The rental Disclosure document, or form "J", filed by the Developer usually indicated the length of time that the units will be designated as rentals. This could be limited to several years or indefinite.

This meant that a buyer of a unit in a Strata, purchasing from the Developer, (first buyer), had a right to rent his unit for the period of time that the Form "J" specified, regardless of any changes in Bylaws limiting the rentals.

However, the second buyer, (buying as a resale) did not have that right. If restrictions to rentals had been voted in by the Strata Corporation, the second Buyer would have to abide by these  changes.

As of Jan 1, 2010, the Strata Property Act was changed, which will make it easier for the second buyer to be an investor, because the only governing document they will have to abide to is the Form "J" and it's limitations.

This explanation, courtesy of
Spagnuolo & Company Real Estate Lawyers

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.

 If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-506-8481 or email me at jeff@jeffreystark.net