FROM FORMER PROPERTY MANAGER:

...... there have been several court cases where disputes have arisen between townhouse owners and apartment owners.  The courts have in all three cases upheld the principle of apportioning costs according to types.  The Strata Property Act specifically recognizes the way it is to be done.  All three cases involved strata's formed under the condominium act and operated for some time with costs apportioned by type subsequently changed by strata managers.  In one case the court ordered the formation of sections.  The bylaw registered in 1996 was based on legal advice I received from a Victoria lawyer. 
 

....... It is beyond my comprehension as a current owner, that this structure could be arbitrarily changed without regard for the owners or a full explanation as to the legality of the change. There seems to be a complete lack of transparency in the legal and financial management of Creekside Village in this area and I would request that at minimum, you get a legal opinion on this issue and also consult with the Condominium Homeowner’s Association to get clarification on this very important matter. Once this is done, the outcome should then be fully and clearly communicated to the owners so that all facts are known to allow owners to properly vote at the extraordinary general meeting.
 

   FROM LAWYER FOR TOWNHOUSE OWNERS:

From a Townhouse Type Owner:

......I strongly believe that the appropriate bylaw has been in place to correctly assign the expenses unique to Buildings A&B since September 1996 and the intent of the subsequent changes made in 2003 and 2004 where to clarify a bylaw already in place as advised by lawyers retained at significant expense by the strata council in 2002. Despite making several enquiries I have yet to receive a definitive response from either the strata council or Westcoast justifying the manner in which the Strata Fees have been calculated for 2007-08. The inertia exhibited by both parties is disappointing and irresponsible to say the least. Why form committees and study groups when the procedure as set forth in the bylaws has been in place since 1996.  What else is there to research? ......

FROM AN APARTMENT TYPE OWNER:

We reviewed the jurisprudence established by the case law that was presented at the annual general meeting in April.  In addition, we discussed the Strata Property Act, Strata Property Regulation, the length of time Building C paid the reduced rates, and our by-laws which state that we have different types of strata lots. We suggest that Mr. Purkis may not have interpreted the Act correctly in his letter dated July 09, 2007 and a way be explored for Building C to be granted their initial request to revert back to the Original Method of Establishing Strata Fees.  We believe this would resolve the issue in a respectful manner.

The Townhouse Owners are requesting that the strata council obtain a legal opinion from a qualified legal authority as opposed to an opinion offered by the strata manager regarding the allocation of expenses in respect of the types bylaw that was originally registered under instrument number EK103615 on September 16, 1996 and subsequently amended and accepted at the AGM on January 22, 2004 and registered as instrument EW15466 on February 10, 2004.....

· Lack of prosecution of strata developers acting contrary to law;

· Absence of an enforceable code of ethics and conduct for strata property management companies that advise and often control strata councils;

· Lack of a publicly available authoritative source of legislation interpretation to enable strata corporations to operate according to law; and

· Lack of specific penalties for those who refuse to act according to law.

One in four properties in the province are directly affected by strata legislation.

Deryk Norton

VISOA board member

Nanaimo News Bulletin, March 2009