Before buying into a strata corporation, protect your interests by reviewing all the legal considerations with your local BC Notary

1. FEATURE
Margaret Rankin
Buying into
a Strata Corporation
T
azmeen has presented
an excellent overview
of items you must consider
to protect your investment
in your new townhouse or
a condominium.
To protect your legal interest in the
property, review them carefully with
your legal representative—a BC Notary
or lawyer.
1.
Before registering title to the
property, your legal professional
will need to know how you intend
your name(s) to appear as the
Registered Owner on the actual
title. He or she will explain the
charges registered against the title
to your strata lot and against the
common property.
The charges represent three legal
distinctions in your ownership of your
strata property.
•
The charges that will remain
registered against your property
and why they are there, for
example, easements, covenants,
restrictive covenants, rights of way
•
The “legal notations” registered on
the title that mainly benefit your
title ownership, such as charges
against a neighbouring property,
for example, easements, rights
of way, and covenants
•
Any charges registered against
the Common Property of the
Strata Corporation, for example,
financial charges and bylaw
changes. Your legal representative
must ensure that no charges against
the title to your new property
adversely affect your ownership
32
2. will verify the Strata Plan
You
to determine that the “civic
address” of the property you have
purchased is the correct “strata lot”
as located on the Strata Plan.
To protect your legal interest…
review them carefully…
3.
You will review the municipal
property taxes and strata obligations
to ensure
•
your civic address and the legal
description of your property agree
with each other;
•
there are no outstanding tax
arrears that must be paid by the
seller and there are no Land Tax
Deferment Act charges registered
against the title that must be
paid out and discharged on the
completion of the transaction; and
to purchase your new property,
your financial institution will have
provided your legal representative
with the details of the “mortgage”
charge to be registered against
your new property. Review all the
specific details about the money
you have pre-arranged to borrow.
6.
Your legal representative will
advise you on obtaining the
required home and liability
insurance specifically required
for strata corporations to protect
you against any liability relating
to any adjoining neighbours. He
or she will also ensure that the
strata corporation insurance is
in effect to protect you and your
financial institution.
Within a few months following the
completion of your transaction, you will
receive a “State of Title Certificate”
detailing
• unpaid strata corporation
any
fees owing by the seller are fully
paid upon the completion of the
transaction.
• as the “Registered Owner”
you
on title to the property, set out
the way you instructed your legal
representative to do it;
4.
Your legal representative is
responsible to protect you
to ensure that any financial
charges on or affecting your new
property that are the seller’s
responsibility are paid out and
discharged from the title following
the completion of the Contract,
as detailed in your Contract
of Purchase and Sale. That is
completed by a professionally
insured “undertaking” exchanged
between your legal representative
and the legal representative
of the seller.
• charges registered against the
any
property, being those nonfinancial
charges that will remain on the
title you are purchasing; and
5. you are using mortgage monies
If
from a financial institution
The Society of Notaries Public of British Columbia
• “mortgage” charge(s) that
the
have been registered against
the title to secure the interest
of your financial institution in the
property. s
Margaret Rankin is Notary Public
practising in Lynn Valley in North
Vancouver.
Telephone: 604 985-5789
Fax:
604 985-5597
rankinnotary@shaw.ca
Volume 22 Number 2 Summer 2013