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The Lay of the Land DEVELOPMENTS IN CANADIAN REAL PROPERTY LAW

Tag Archives: developers

Strata Wind-Up and Sale Process: A Practical Overview

Posted in Construction, Residential

Introduction

As reported in a previous blog post, the B.C. Strata Property Act[1] was recently amended to make it easier for strata corporations to wind themselves up. As of July 2016, 80% approval now suffices, provided the resolution is subsequently confirmed by the B.C. Supreme Court.

The relaxed threshold for passing a wind-up resolution has opened up a valuable opportunity – for both strata owners and developers alike – to market aging strata complexes for redevelopment. Yet, to seize this opportunity, strata councils, strata owners, and developers must ensure that the wind-up and sale process satisfies the essential … Continue Reading

Court Confirmation of Strata Wind-Up Resolutions – The Experience So Far in B.C.

Posted in Policy, Residential

 

Introduction

Before July 2016, in order to wind-up a strata corporation voluntarily through a liquidator in B.C., unanimous approval of the strata owners was generally required. The unanimity requirement made strata wind-ups a rare event, and consequently it was exceedingly difficult for owners to sell a strata complex in its entirety for redevelopment. In an influential 2015 report, the B.C. Law Institute (“BCLI”) identified some of the problems with the unanimity requirement:… Continue Reading

Beware of the Residential Invasion!

Posted in Construction, Land Use, Municipal, Residential, Zoning

It must tell something about the age we live in, but TV shows and movies dealing with zombies have been all over the place for a couple of years now. However, as a real estate lawyer representing large industrial corporations, there is something I fear more than an invasion of undead people on the lookout for fresh brains: the urban sprawl!  And more specifically, the residential invasion of industrial areas caused by the urban sprawl.… Continue Reading

Developers: are you meeting your FINTRAC Obligations?

Posted in Commercial, Residential

In recent weeks, news headlines revealed that the Vancouver real estate sector is currently the focus of a Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) anti-money laundering audit that has already been underway for several months. According to reports, the increased scrutiny is justified by FINTRAC risk analyses indicating that the real estate sector has a relatively high risk of money laundering when compared to other sectors that are subject to the federal government’s anti-money laundering legislation. This has raised compliance concerns and questions from real estate developers.… Continue Reading

Can a Developer Limit its Liability for Construction Defects?

Posted in Construction, Litigation

Lawyers representing strata lot purchasers in British Columbia have, to date, made considerable hay by emphasizing that the Real Estate Development Marketing Act (British Columbia) is “consumer protection” legislation to be interpreted in favour of purchasers. The bias in favour of the consumer has arguably lost some of its lustre in the past year or so (see, for example, the decision in Woo v. Onni, discussed here), but there is still concern that, when in doubt, the courts will invoke the consumer protection nature of the legislation to justify a decision in favour of the proverbial “little guy”, … Continue Reading

Vertical Parking, Elevated Parking or Car Stackers… Call it as You Want, This is an Incredible Space-Saver!

Posted in Land Use, Municipal, Zoning

You may have seen this while strolling down in the streets of New York City or Chicago, where a few elevated parking lots can be found, or while watching the 2011 movie Mission Impossible : Ghost Protocol, where a vertical parking structure is used as the set of a quite intense fist fight.

Vertical parking is a brilliant idea which allows a property owner to increase parking capacity through multiple levels using mechanical lifts and hydraulic systems. The practical applications are multiple : parking lot operators can turn small plots of land into profitable operations, residential and commercial developers … Continue Reading

Proposed Amendments to Alberta’s Condominium Property Act

Posted in Commercial, Construction, Policy, Residential

On May 6, 2014 amendments to Alberta’s Condominium Property Act were introduced into the Alberta Legislature.  The Act establishes the framework for the development, sale, and governance of both residential and commercial condominiums located in Alberta and outlines the duties and responsibilities of developers, owners, buyers and boards.  The proposed amendments are designed to bring the Act, originally introduced in the 1960s, more in-line with the modern realities of Alberta’s growing condominium industry – currently, there are more than 8,000 condominium corporations registered in Alberta and condominiums account for over 20% of homes sold annually in Alberta.

More than 50 … Continue Reading

REDMA Revisited

Posted in Municipal

For at least 10 years prior to the market correction in 2008, strata lot prices in British Columbia were on a decidedly upward trend and, not surprisingly, the market attracted not just homebuyers, but also speculators who signed purchase agreements with a view to making a profit by either assigning their contracts or selling their strata lots.  In the wake of the correction, litigation under the Real Estate Development Marketing Act (British Columbia) (REDMA) proliferated as homebuyers and speculators alike, faced with the realization that they had agreed to pay more than current market value, sought to avoid … Continue Reading

REDMA: Considerations For Lenders

Posted in Municipal

Lenders should be more aware of the sweeping effects of the British Columbia Real Estate Development Marketing Act (REDMA).  Compliance by developers with the REDMA is crucial for lenders because failure to comply can lead to unenforceable purchase contracts.

Overview

The REDMA requires a developer to file a disclosure statement before marketing commences.  The disclosure statement must, without misrepresentation, plainly disclose all material facts.  Before a purchaser enters into a purchase contract with a developer, the developer must provide the purchaser with a copy of the disclosure statement and a reasonable opportunity to review it.  Purchasers have a right of … Continue Reading