306 - 620 View Street, Victoria, B.C. V8W 1J6 General Office Email: [email protected] Office Telephone: (250) 920-0688 or 1-855-38VISOA (1-855-388-4762) Helpline: 250-920-0222 or 1-877-33VISOA (1-877-338-4762) Web site: www.visoa.bc.ca VISOA Bulletin - FEBRUARY 2015 Two Court Cases Affecting BC Strata Owners By Sandy Wagner Early 2015 brought us news of two windows “in the near future”. The AGM resolution to remediate the re- court cases, with implications for all council attempted to pass a resolution maining two exterior walls, with the strata owners. The cases were most to have the work completed, but the cost payable via Special Assessment. interesting! owners at the SGM authorized only a The motion failed, having received portion of the work and a subsequent 63% and not the required 75%. Essential Building Repairs and SGM authorized another portion. In December of 2013 the Strata Special Levies Major remediation took place in Property Act S. 173 was amended to The first is about repairs: In The 2008 and 2013 to two of the four provide that a strata achieving less Owners, Strata Plan VIS114 v. John exterior walls. Thus remediation of than a 75% vote in favour, but more Doe, 2015 BSC, the strata council only 50% of the exterior walls more than 50%, could petition the court to had to have the court’s assistance to directly exposed to the elements was approve the resolution if the repair get needed building envelope repairs completed; remediation of the other of the common property in question completed. The building was 40 years two walls was not. is needed to prevent significant loss old, and had suffered water ingress Owners living on the non- or damage, or to ensure safety. The problems since it was 12 years old. remediated sides of the building judge ruled in the strata’s favour and Repairs such as caulking or window continued to report water ingress the council was now free to remediate and stucco repair were carried out resulting in water pooling on sills the remaining two exterior walls with from time to time. The owners and mold on the walls. a Special Assessment. had obtained a Building Envelope This was observed in a 2013 De- It’s a long and complicated case, and Condition Assessment in 2007, which preciation Report which recom- you can read the complete decision recommended complete remediation mended remediation within one year. here: http://www.courts.gov.bc.ca/jdb- of the wall cladding assembly and The 2014 Strata Council proposed an txt/SC/15/00/2015BCSC0013.htm In this issue... Continued on page 2 • Two Court Cases Affecting BC Strata Owners Sandy Wagner...... 1 BOARD OF DIRECTORS 2014 • 10 Myths Delaying Depreciation Reports David Albrice...... 3 • VISOA Publications Go Digital ...... 5 EXECUTIVE • Insurance Appraisals: Insuring Your Property to Value Margarita Carlos...... 6 President - Sandy Wagner • Business Member Directory...... 8 Vice President - John Webb • You Asked David Grubb...... 10 Secretary - David Grubb • BC Law Institute Strata Property Law Project- Phase Two Pat Williams...... 14 Treasurer - Esther Harvey • Letters to VISOA...... 15 DIRECTORS AT LARGE • Strata - Document Retention Guide...... 16 • Introducing New Business Members...... 18 Deryk Norton, Harvey Williams, Wendy Wall, Laurie McKay, • Civil Resolution Tribunal Update, January 2015 Shannon Salter...... 19 Deborah Fraess, Lynn Klein, • President’s Report Sandy Wagner...... 20 Denise Brooks

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 1 Two Court Cases affecting BC Strata Owners Continued from page 1

This case certainly changes the bylaw declared invalid. The rental detailed enough that a strata owner, or way in which special levy votes are bylaw limited the number of units that a prospective strata owner, who reads achieved – owners are reminded could be rented, but did not include any the bylaws can clearly see how the that necessary repairs must be done. process for the administration of the strata corporation decides which strata Period. restriction. owner is entitled to lease their strata lot The Strata Property Act S. 141 when the rental restriction limit is not Inadequate Rental Restriction Bylaws requires that a bylaw restricting the reached, and how a strata owner can The second case of note is about number of units that may be rented must attain that right.” rentals: In Carnahan v. The Owners set out the procedure to be followed by The right of the Carnahans to Strata Plan LMS522, 2014 BCSC 2375, the strata corporation in administering rent out their strata lot was clearly the Carnahans petitioned the court to the limit. The Carnahans had pointed supported by the judge, who declared have their strata’s rental restriction out to the strata council the inadequacy the strata’s rental restriction bylaw to of the strata’s bylaw which therefore be unenforceable, and all fines levied rendered it unenforceable, and then were cancelled. Seminar sound system rented out their strata lot. The strata The complete court decision can be provided by PROSHOP council began fining the owners $300 found here: per week for breach of the bylaws. http://www.courts.gov.bc.ca/jdb-txt/ SOUND & LIGHTING The strata corporation argued that, SC/14/23/2014BCSC2375.htm although not written in the bylaws, they Do your strata’s rental restriction did have a procedure which council bylaws comply adequately with S.141? had followed for many years in the past I hope so! and which Mr. Carnahan not only knew You can hear more details about about but had applied to others when these two cases at our AGM on March he was formerly on council. 1st, when Lawyer Tino Di Bella of Jack Paulo 250-361-1711 The judge, in referring to SPA Jawl Bundon LLP will be our featured 3 - 464 Bay St. Victoria BC S.141 stated: “The procedure must be speaker.

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2 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-0222 • General information (250) 920-0688 or [email protected] 10 Myths Delaying Depreciation Reports By David Albrice Listed here are as furnaces and water heaters, these • It is not unreasonable for the report the most common types of developments have some to be restructured to match the reasons I have unique features. Here are a few things scale and complexity of the smaller heard some owners to consider: building. This can result in reducing use for delaying • Townhouses have significantly the professional fees. the commissioning more roof area, exterior wall area and • Think about gathering as much data of a Depreciation roadways, per unit, when compared to as you can to reduce the amount of Report (also called a low-rise buildings and high-rise time that the consulting team needs Reserve Study or a Capital to spend on the building. A Plan). I have included committee of some of the some reasons why these are owners can work closely with based on false assumptions. the consultant to facilitate the report. Myth 1: We are a young building and don’t need a Myth 4: We are waiting for the capital plan until we get older. professional fees to come down. Young buildings often Some people assume that find themselves going consulting fees have been through a “teething” artificially inflated as a result process, which includes of the demand created by warranty reviews to protect the legislated requirement to against any construction The price of light is less than the cost of darkness. This is a call to commission a depreciation defects and adjustments action for 5000+ buildings in . report. A few things to consider: to financial operations • It requires a team effort to to address the artificially deflated developments. While there may be prepare a good depreciation report and marketing budgets established by fewer assets, they are larger in size. the prime consultant will sometimes some developers. Here are some more • There is a lot of buried infrastructure need to engage the services of things to consider: under the roadways and around the specialized sub-consultants. The total • The depreciation report provides perimeter of each building, which is fee is therefore applied across various advice on major maintenance not readily apparent. This includes professionals, each of which has their activities to help extend the life of the storm water pipes and sanitary pipes own fee structure. young assets and these maintenance that typically last several decades but • The consultants are required to activities are most effective if started will be costly to replace. conduct an on-site visual inspection early in the life of the building. • The depreciation report identifies the and meet other standards stipulated by • The report identifies the 2-5-10 necessary major maintenance cycles the local regulations. The preparation warranty cycles that are paramount to protect the owners’ investment. of a depreciation report is a significant for consumer protection during the For example, camera scoping surveys undertaking that cannot be taken early years of the building. of the drain pipes, to detect any root lightly. • Young buildings are in the envious intrusion and sediment build-up, can • The first “wave” of reports was position of being able to leverage the save many thousands of Dollars from completed within the deadline power of the compounding effect of water damaged basements and crawl stipulated in the regulations and now interest income that can be earned in spaces. there is a new wave of update reports the reserve account. Small adjustments that are being requested by the early early in the life of the building will Myth 3: We are a small building with few adopters. While the fees cannot be have a positive impact down the road. units so it is not affordable for us. reduced, the turnaround times are improving as the consulting firms have It is unfortunate that smaller become more efficient in preparing the Myth 2: We are a townhouse complex and buildings do not enjoy the economies reports and have arranged additional don’t have many assets to worry about. of scale of larger building where costs resources to meet the demand. While it is true that many are distributed across a larger number townhouses include assets that are of owners. Some things for small not part of the common property, such buildings to consider: Continued on page 4

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 3 10 Myths Delaying Depreciation Reports Continued from page 3

Myth 5: We are too scared to see the Myth 6: We think it is a witch-hunt and can evaluate the proposals and award results, which will make our lives don’t trust the consultants will be fair the contract. miserable. and reasonable. • It takes a few months to complete the depreciation report, which should Some owners assume that the Given the “leaky condo” crisis in preferably be obtained prior to the end report will inevitably bring bad news British Columbia, it is understandable of the current fiscal year so that it can that will end up costing them more that some owners lost confidence in be used to make preparations for the money. Here are fact checks to bear the quality of construction. Here are next fiscal cycle. in mind: some things to take into consideration: • The majority of reports have • Engineers, and other regulated Myth 8: It is too complicated and we indicated that the owners have been professionals, are bound by a code reasonably diligent in maintaining of professional ethics to be impartial. don’t know what to do. their buildings. A good report card A good consultant endeavours to By reading this article you are provides peace of mind. provide a report that makes reasonable now hopefully in the process of • No building is immune from large forecasts of future projects and educating yourself. The challenge, capital projects, regardless of how includes defensible estimates of these however, is to take the message well built and how well maintained. costs. back to the ownership at large and to Burying our heads in the sand does • The report must include disclosure educate the group so that they climb not make the projects go away. of all methods and assumptions so that the learning curve. Here are some Many real estate agents have posted these can be reviewed and validated. things to consider. blogs expressing the opinion that it is This responsibility is not taken • There are lots of free consumer better to have a report than not to have lightly and gives the owners “open guides that are just a few clicks away one. book” access to the data collected by on the internet. • The owners have the final say in the consultant. Ask your consultant • Ignorance is not bliss. At some point, how they spend their money. The for references so that you can get the owners may find themselves in an report provides information so that the input from other owner groups who awkward position of having to explain owners can understand the risks and ventured forward with their reports. why due diligence was not done. make informed decisions. • A good report will not only help • The legislation requires the board the owners plan for the eventual directors, who have been elected No Depreciation Report end-of-life renewal projects but will by the owners to serve in the also provides useful information on corporations’ best interest, to act like maintenance activities to help stretch prudent and reasonable people in the dollars and potentially delay comparable circumstances. While the some big ticket items. The consultant Directors have errors and omissions is therefore a stakeholder in the liability insurance, who wants to have development of a meaningful and to defend such an embarrassing claim. useful report. Myth 9: We passed a resolution at our Myth 7: We are waiting to finish a big last general meeting opting out. Lots of surprises; not much peace of mind. capital project (or investigation) before “Failing to plan is planning to fail.” While the owners, in their we get our report. collective wisdom, may not want With a Depreciation Report It is understandable that owners to take a long-range view of their want the report to reflect all the building, it important to consider the positive work that has been done following: on their building. Some things to • The exemption lasts for only one consider: year and must be updated at each • A good depreciation report will annual general meeting. recognize that a project is underway • Continued exemptions will likely get or is about to be launched. The data in harder over the ensuing years as more the report can therefore be postdated buildings complete their reports and to reflect this ongoing work. the culture in the market changes. Few surprised; peace of mind. • There is no harm in getting the “Plan the work and work the plan.” process underway so that the owners Continued on page 5

4 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-0222 • General information (250) 920-0688 or [email protected] 10 Myths Delaying Depreciation Reports Continued from page 4 VISOA PUBLICATIONS GO DIGITAL

• Any building that is neglected will As many of our members know, VISOA produces and prints several eventually take control of the owners. “self-help” publications to help educate strata owners. These are available for purchase in several ways: on our website, with a nominal added fee covering Myth 10: There is no enforcement process postage and handling; or with no postage charge if purchased in person – at our so it can’t be that important. seminars or at our office. While it is true that the legislation For those members unable to purchase in person, we now offer a third has not (yet) set up enforcement purchase option: Digital download. On the “publications” page of our website, procedures, here are some things to you will see that our seven VISOA publication are listed with two pricing consider: options. Digital downloads are half the price of printed copies, and come with • Over the last few decades the “instant gratification” – as soon as your payment is securely sent through PayPal legislation has gradually been (using a PayPal account or your credit card) your download begins. Once you tightened to steer the consumer own the digital version of the publication you can save it to your computer for towards responsible stewardship. future reference, or print it if you wish. • The open market is serving as the enforcement police where the The following VISOA publications are now available digitally: marketability of suites and resale • What Every Strata Owner Should Know About the Strata Property Act, value are compelling forces to Regulations, and Standard Bylaws contend with. Read the realtor blogs • Sample Residents’ Manual to get their perspective on the value • A Practical Guide to Budgeting and Financial Reporting for Residential of a depreciation report and how this Strata Corporations impacts real estate buying decisions. • Strata Insurance • Several thousand building have • Management of the Contingency Reserve Fund completed their studies and many • Depreciation Reports for BC Strata Corporations studies are currently underway. • Best Practices for BC Strata Treasurers Estimates are now at approximately

30-50% compliance and climbing. In addition, our newest publication should be available shortly. “New To I close with a powerful quotation Council? An Overview of the Responsibilities of Strata Councils” is currently that offers some food for thought for in production and will be available both in print and digitally this spring. those owners who are still considering whether to obtain their report: If you have “The price of light is less than the comments on any cost of darkness” (Arthur C. Nielsen) of publications, or ideas for new topics, Our people make the Difference! David is a certified professional reserve please connect analyst, and a specialist in building with our office: maintenance and planning with RDH administrator@ Commercial & Residential Building Engineering Ltd. Find David visoa.bc.ca on Twitter @DavidAlbrice Strata Management

Small Business & Strata Bookkeeping Sectioned & Mixed Use Specialists Services & Administration • Over 20 years experience • Computerized Accounting Locally Owned & Operated • Spreadsheets & Word Processing • Produce Financial Statements Serving: • Year End Budgeting • Assessment Formulation • Contingency Forecast Report Assistance • Consulting & Applicable Functions when required South Van. Island Barbara Zimmer & the Gulf Islands Attention to Detail • Dedicated • Analytical 201 – 1537 Hillside Ave. Victoria BC V8T 2C1 250-727-9743 Phone 250.388.9920 Fax 250.388.9945 E-mail [email protected] www.richmondproperty.ca

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 5 INSURING YOUR PROPERTY TO VALUE

Insurance Appraisals Insuring Your Property to Value

By Margarita Carlos, MBA, CRP – Business Development Manager

A strata property is a very valuable asset, and one of the key components to protecting it is obtaining a reliable and comprehensive insurance valuation performed by an experienced appraiser. An appraisal will guarantee that the entire property is insured to a supportable dollar amount. This is called the ToTal Insurable Value (TIV). The sTraTa ProPerTy acT requires a strata corporation to acquire and maintain full replacement cost insurance on the building, the common facilities and any insurable improvements. The corporation is also required to review the adequacy of this insurance annually.

Insurance appraisals are highly specialized reports be adhered to when rebuilding the property. that start with a site inspection followed by a Consequently, an appraiser’s review of the property analysis to determine the calculation property must include an assessment of the of supportable estimates for replacement costs. current property composition compared to the Qualified appraisers are able to produce reliable current standards and regulations of the specific estimates based on expertise acquired through municipality and province in which it is located. extensive training and experience. Moreover, Any code requirements that are not currently experienced appraisers make their estimates met are accounted for in the replacement based on an analysis of the current environment, cost estimate. and do not rely on third party software based An experienced appraiser also considers outside the region or use generic information to current building practices and technological determine their estimates. improvements that have become standard in new The appraiser will have certain specialized skills buildings. As a general rule appraisers assume to determine appropriate costing. There are a like-for-like replacement of all components several additional considerations to complete of the property whenever possible. However, an effective insurance appraisal. The importance there are some circumstances where appraisers of bylaw reviews cannot be overstated as they assume that the existing subcomponents within are crucial to the appraisal process. In the event a property will be replaced with something that of a disaster, current municipal bylaws must is similar but up to current standards. In these

6 • VISOA Bulletin February 2015 DEPREcIATION INSURANcE BUILDING www.normac.caVISOA Helpline: (250) 920-0222REPORTS • General information (250)APPRAISAL 920-0688 orS [email protected] INSURING YOUR PROPERTY TO VALUE

situations, the as-built construction practices are misused straight percentage calculation considered obsolete, and modern construction to estimate demolition and removal costs. methodology and materials is assumed in the A straight percentage often proves to be appraisal value. overly simplistic and ineffective in the event of major reconstruction. Accounting for demolition and removal costs is another important consideration in the Without the review and knowledge of such appraisal process. This can prove to be quite additional costs and considerations, there is costly and differs greatly by property type. potential for significant exposure, rendering Strata corporations should be wary of the the strata corporation liable for the difference.

Example: For a 150,000 sq. ft. residential tower Added together, (100 suites) with 20,000 sq. ft. of parking (100 these items could stalls) area. After a building code and bylaw total over review, it may be determined that the following $ modernizations must be implemented if the 2.5MM building were to be built today: beyond the reconstruction • 40 additional parking stalls cost of the • Lift for people with disabilities existing items. • Sprinklers above the parking garage • Demolition & removal of old building required

An insurance appraisal requires a unique skill reliable, comprehensive insurance appraisal to set, and has specific demands that go beyond protect it cannot be over emphasized. When a house or commercial property review facing major repairs, a correctly performed performed for a bank. Keeping up to date in insurance appraisal can save the owners millions construction methods, costs, building codes, of dollars. Failure to meet property damage bylaws, demolition, and the Strata Property Act replacement costs because of inadequate are critical to providing a reliable TIV estimate. coverage means the strata corporation, and For this reason property owners are best served ultimately owners, are required to pay for any when they use appraisers who do this type of shortfall. Insurance brokers and underwriters work full time. understand the details and implications of property replacement estimates, and for this For most people, their property is their most reason an expertly prepared appraisal is the best valuable asset. The importance of having a insurance a property owner can have.

DEPREcIATION INSURANcE BUILDING “Assistingwww.normac.ca Strata Councils and Owners since 1973” REPORTS APPRAISALVISOA SBulletin FebruaryScIEN 2015cE • 7 BUSINESS MEMBERS BUILDING SUPPLIES Wm S. JACKSON AND ASSOCIATES LTD. INSURANCE & RELATED SERVICES Insurance Appraisals, Depreciation Reports INDUSTRIAL PLASTICS AND PAINT 250-338-7323 • 1-877-888-4316 BFL INSURANCE SERVICES INC. Building/Maintenance Products [email protected] International Insurance Brokers and Consultants 250-727-3545 ext 105 www.comoxvalleyappraisers.com 1-866-669-9602 [email protected] www.BFLCanada.ca www.goindustrial.ca PACIFIC RIM APPRAISALS LTD. Depreciation Reports & Insurance Appraisals PALMER APPRAISALS LTD NEW TORBRAM ELECTRIC SUPPLY VICTORIA NEW 250-477-7090 • 250-754-3710 Insurance and Residential Appraisals 250-480-4818 • Fax 250-480-4894 [email protected] 250-388-9102 * Fax 250-384-0150 [email protected] www.pacificrimappraisals.com [email protected] www.torbramelectric.com palmerappraisals.com READ JONES CHRISTOFFERSEN LTD. DEPRECIATION REPORTS Consulting Engineers - Reserve Fund Studies RELIANCE ASSET CONSULTING 250-386-7794 • Fax 250-381-7900 Insurance Appraisals & Reserve Studies A.J. FINLAYSON DEPRECIATION [email protected] • www.rjc.ca 1-866-941-2535 REPORTS LTD. [email protected] Depreciation Reports RDH BUILDING ENGINEERING LTD. www.relianceconsulting.ca Phone 250-656-2224 • Fax 250-656-2279 Building Envelope Engineering Consultants [email protected] Victoria: 250-479-1110 • [email protected] SEAFIRST INSURANCE BROKERS Courtenay: 250-703-4753 • [email protected] Shawn Fehr & Doug Guedes ASSET & STRUCTURAL ANALYSIS CONSULTING www.rdh.com 250-652-1141 or 778-678-5821 ENGINEERS [email protected] Depreciation Reports, Structural Engineering Analysis, UNITY SERVICES CORPORATION www.seafirstinsurance.com Economic Replacement Analysis Consulting Services for Depreciation Reports 250-537-6132 and Maintenance Planning MAINTENANCE & PROJECT CONTRACTORS [email protected] 250-893-3445 • [email protected] https://sites.google.com/site/assetanalysisengineering/ www.unityservices.ca BARTLETT TREE EXPERTS depreciation-reports Scientific tree care since 1907 NEW FINANCIAL 250-479-3873 • 1-877-227-8538 BELL APPRAISALS [email protected] www.bartlett.com Replacement Cost New Insurance Reports & COAST CAPITAL SAVINGS CREDIT UNION Depreciation Reports Strata Account Pricing Program CENTRA WINDOWS LTD. [email protected] 250-483-8710 • Fax 250-483-8716 Windows, Doors, Siding, Renovations, Multi-Family 250-514-3486 • www.bell-appraisals.ca [email protected] 250-412-2525 • Fax 250-412-9605 www.coastcapitalsavings.com [email protected] • www.centra.ca STRATA RESERVE PLANNING A division of Bramwell and Associates ISLAND SAVINGS CREDIT UNION CLEAN AIR YARD CARE 604-608-6161 • 604-669-6869 NEW Special accounts for strata corporations and owners 100% Organic Yard Care Program NEW stratareserveplanning.com 250-414-4193 • Fax 250-360-1461 250-889-5375 [email protected] • www.iscu.com [email protected] • cleanairyardcare.ca CLEAR PATH ENGINEERING INC. Depreciation Reports & Reserve Fund Studies MNP LLP CHINOOK POWER-VAC LTD. 1-877-989-8918 • Fax 1-866-362-0592 Chartered Accountants and Business Advisers Dryer Vent, Duct, & Furnace Cleaning [email protected] Serving 1-800-556-8622 • Fax 250-715-1868 www.clearpathengineering.ca 250-748-3761 • Fax 250-476-1712 [email protected] [email protected] • www.mnp.ca www.chinookpower-vac.com IDB SOLUTIONS Insurance Appraisals, Depreciation Reports MORRISON FINANCIAL SERVICES LTD. DOWNS CONSTRUCTION LTD. 250-858-6056 Financial - Condominium Lending Fire & Flood Restoration, Renovations [email protected] 416 - 391-3535 (ext 115) 250-384-1390 • Fax 250 384-1400 www.idbsolutions.ca [email protected] [email protected] www.morrisonfinancial.com www.downsconstruction.com NORMAC APPRAISALS LTD. Insurance Appraisals and Depreciation Reports WILLIAM J. RHIND & ASSOCIATES DYRDA BROTHERS CONSTRUCTION Phone: 1-888-887-0002 • Fax 604-224-1445 Banking Services for Small Businesses Renovation & Remodelling [email protected] • www.normac.ca 604-732-3002 Erik Dyrda 250-858-3745 • Scott Dyrda 250-589-2817 [email protected] [email protected] www.WJRhind.com www.facebook.com/DyrdaBrothers

8 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-0222 • General information (250) 920-0688 or [email protected] BUSINESS MEMBERS EMPRESS PAINTING VICTORIA DRAIN SERVICES LTD. CASCADIA ENERGY LTD. Commercial & Residential Drainage & Plumbing Natural Gas Supply & Management 250-383-5224 • Fax 250-383-0222 250-818-1609 • Fax 250-388-6484 250-748-6664 • Fax 250-748-6503 [email protected] [email protected] [email protected] www.empresspainting.ca www.victoriadrains.com www.cascadiaenergy.ca

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“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 9 You Asked Have a question about managing your strata corporation? Ask us, we’ve had a lot of experience helping strata corporations solve problems - perhaps we can help you. Questions may be rephrased to conceal the identity of the questioner and to improve clarity when necessary. We do not provide legal advice, and our answers should not be construed as such. However, we may and often will advise you to seek legal advice. convenient bookkeeping adjustment. into a very large fund, they could This issue’s Our Property Manager has recently achieve far better earnings through questions are informed us that the Real Estate a much more diversified portfolio answered by Council of BC, which licenses Strata of investments than each strata David Grubb Property Managers, has directed could earn on its own whether in them that they “must” transfer every savings accounts or other “safe” month any portions of the owners’ instruments such as GICs and bonds. fees identified for deposit to the CRF Then they could credit the higher Why is the Real Estate Council from the strata’s Operating account earnings to each strata in proportion Interfering in our Strata’s Books? to its CRF account, apparently to its particular capital investment. without first being directed to do so Moreover, the property managers Q: by the strata council. contended, with only one chequing Our concern with the Real Estate account, they were saving each strata Our Property Manager does our Council is that they are only the higher bank service charges which accounting and writes all cheques. licensing authority for strata property they would incur if each strata had We have two bank accounts managers and therefore have no its own accounts. (Operating and Contingency authority with regard to regulation Many, including VISOA, objected Reserve Fund) within the books of of the Contingency Funds of a strata, to this practice - common before account. All revenue collected and which can only be dealt with by the regulation and licensing of strata cheques written are from within the strata council in accordance with the managers - for some time since it Operating account. Strata Property Act. could result in a very opaque view Our practise has been that the of the property manager’s accounts monthly contingency assessment A: and could be subject to “mistakes” is transferred to the Contingency (accidental or otherwise). How could Reserve Fund from the Operating Before the requirement for strata managers to be licensed (on January the clients determine how much the account only at the direction of the manager was “taking off the top” council treasurer. When we have 1, 2006), property management companies could “pool” all the of the total return on investment expenditures from the Contingency for “administration”? Despite any Reserve Fund, normally the monies received from all their strata clients in one bank account, and then “instructions” from council, how appropriate amount is transferred could a strata be sure of the accuracy by our bank from the CRF to pay the bills of each client or make investments from that account, and of its own income and payments, the the operating fund, again, “only actual amounts of money in any of on written instructions from the thereafter reflect the payments, and “transfers” of CRF money to and the Operating account, CRF account treasurer.” or a special level account, or of its true from “investments” (along with any On occasion, when we have had portion of the investment earnings, “proportionate accrued interest”), impending CRF expenses, rather without verifiable information? In by journal entry in their own than transfer funds from the CRF such cases, it was very difficult, if books alone. In this arrangement, bank account to the Operating bank not impossible, for an individual managers had only that one pooled account, we have delayed the transfer strata to be able to get separate bank account with a financial institution of funds to the CRF bank account reconciliations to assure themselves, and therefore any monthly bank from strata fees, retaining those since any bank statements would statement would be in the name funds in the Operating bank account generally refer only to the property to pay the invoices, then transferred of the property manager and did manager’s cheques or deposits the balance and subsequently not necessarily reflect any specific without necessarily identifying the recorded the appropriate transactions clients of the manager. strata itself. on our own books of account. This Their argument was that by is a simple, understandable and pooling the assets of all their clients Continued on page 11

10 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-0222 • General information (250) 920-0688 or [email protected] You Asked (2) A brokerage must, for each strata the month in which the contingency Continued from page 10 corporation on behalf of which the reserve fund money or special levy brokerage holds or receives money, money was received, the brokerage The only way to rectify this maintain the following brokerage must either situation was through some form of trust accounts: (a) if the brokerage is to hold regulation, so the government chose (a) at least one separate trust the money on behalf of the strata the Real Estate Council of BC to do account in the name of the strata corporation, transfer it to an so under the Real Estate Services Act corporation; applicable trust account under (RESA). (b) if the brokerage is to hold subsection (2) (b) or (c), or RECBC is not just the licencing contingency reserve fund money, at (b) pay the money over to the strata authority in terms of setting least one separate trust account in corporation. standards of training and competence the name of the strata corporation (You can see the whole of this section for Realtors. They have much for the contingency reserve fund of the Rules at http://www.recbc.ca/ greater responsibilities through money; licensee/rules.html#section7-9) the BC government’s Financial (c) if the brokerage is to hold Institutes Commission (FICOM), Editor’s note: text in red has been revised special levy money, at least one from the original online Bulletin. which includes the Superintendent separate trust account in the name of Real Estate who regulates all of the strata corporation for the Thus, your strata’s property matters concerning the Real Estate special levy money. manager is abiding by the Rules in Industry including overseeing (2.1) If a brokerage receives money a clear and transparent manner, and the operations of the RECBC. In that is subject to subsection (2) by despite the apparent inconvenience 2006, the government included the means of direct electronic deposit to your desire to “retain” some CRF administration of licencing and into a brokerage trust account that money in the Operating chequing regulating strata property managers receives funds on behalf of more than account in anticipation of an (licensees and brokers) under one strata corporation, the money expenditure, you should be happy RECBC. must be transferred to the applicable that the manager is conforming to the Under FICOM, neither the trust account under subsection (2) Rules, since: Superintendent of Real Estate no later than 3 days after the day on 1. Their monthly financial statements nor RECBC have any significant which it was received. will be clearer to understand by any responsibilities or authority with Subsection (3) details how the owner and can be easily reconciled respect to abiding by or enforcing brokerage must separate all the Continued on page 12 the provisions of the SPA. Likewise, amounts received a strata council, despite its on behalf of a strata responsibility to manage the finances into the appropriate of the strata corporation effectively, Operating, cannot – even in a contract with Contingency a property manager – dictate how Reserve and Special the manager must operate their Moloney Levy trust accounts accounting practices. If the council of that strata. Painting Ltd. is concerned, they are entitled to However, in addition Commercial / Interior / Exterior administer the finances themselves to subsection (2.1), and omit the accounting functions subsection 7-9 (4) Specializing in strata,ata from the contract with the property is most significant condos & town homesmes manager. to your question Every job comes with our Nevertheless, under the authority in reference to 23 of RESA, the RECBC is authorized commitment to excellence, YEARS IN mandating when the quality services and loyaltyy VICTORIA to create “Rules” (which are as property manager enforceable on property managers must transfer money to our customers. under RESA as “Bylaws” are for to the strata’s CRF “Paul off ered excellent advice on colour andd ppaintaiintt stratas under the SPA). The RECBC or Special Levy options... the quality of his work was nothing short of rules are quite clear and they state: trust accounts: outstanding.” Andrew 2012 7-9 (1) This section applies to (4) If subsection (3) (250)(2500) 360-6400360-0 640 a brokerage that provides strata [email protected] (d) applies, within 7 moloneypainting.com management services. days after the end of

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 11 You Asked YOU ASKED - Does the Owner policy (which does not penalize me) Continued from page 11 or the strata’s policy (which demands Have to Pay the Strata’s the deductible be paid first)? It seems with the financial institution’s Insurance Deductible? that either way we are not being fully monthly statements (not always the covered by either insurance. case with some property managers). 2. Such records protect the council as Q. A. well from being accused by owners When we noticed that there was water coming from a door lintel and First, because the source of the leak of “manipulating” funds in some way was from the roof, your own adjuster since the transfer of monies to the pooling on the floor we notified the strata council as well as our own was entitled to withdraw since your CRF of that portion of their monthly insurance company would not be contributions will be accurately insurance agent who put us in touch with an adjuster. responsible for the claim (except recorded, and transfers from the CRF under certain circumstances noted at account to Operating, noting the At a meeting with our adjuster and a council member, it was established the end of this answer). The strata’s purpose, will be equally clear. insurer would need to appoint its There are many concerns that that the water came from a leak in the roof. Therefore our adjuster withdrew own adjuster. have been raised about both RECBC from any further involvement since In the circumstances you describe, and the property managers not any insurance claim for damages, however, it was inappropriate for the being required to be subject in some including to the attic, a considerable council member to require payment manner to the provisions of the SPA, amount to our floor and possibly of the $3,000 deductible from you. but we cannot be dissatisfied with any some of the walls, would be covered Under section 155 of the Strata measure the RECBC takes to make by the strata corporation’s policy, not Property Act (SPA s.155), you are one managers more accountable to their ours. of the “named insureds” in the strata strata clients for the administration The council member felt, however, corporation’s insurance policy. of the strata’s affairs. Transparency that, in accordance with the strata’s 155 Despite the terms of the in financial management is certainly bylaws, the $3,000 deductible insurance policy, named insureds in a one of those measures. required under the strata’s insurance strata corporation’s insurance policy should be paid by us. include Who should be protecting the (a) the strata corporation, strata owner? My own insurance Continued on page 13

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12 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-0222 • General information (250) 920-0688 or [email protected] You Asked the claim. (i.e. “blamed” on the owner for lack Continued from page 12 (3) Despite any other section of of attention). this Act or the regulations, strata It is in this context that most (b) the owners and tenants from corporation approval is not stratas have amended their bylaws time to time of the strata lots shown required for a special levy or for an to include one which will ensure that on the strata plan, and expenditure from the contingency an owner will be required to pay the (c) the persons who normally reserve fund to cover an insurance deductible if found “responsible”. occupy the strata lots. deductible required to be paid by In addition, stratas need to take into This means that you are one of the the strata corporation to repair or consideration the situation where owners of the policy and may make a replace damaged property, unless the the cost of repairs is less than the claim against it (it doesn’t have to be strata corporation has decided not to deductible which would preclude the the council which initiates it). repair or replace under section 159. strata from making any claim. Stratas There is no bylaw which can take However, while the strata cannot, should always obtain a legal opinion, precedence over the SPA, so the by bylaw, automatically demand but the following is a sample of a deductible would be paid by the strata that an owner pay the deductible, bylaw suggested by a lawyer who corporation. In accordance with SPA SPA 158(2) does permit the strata specializes in strata property law: 158(1) and (3), this is permissible corporation to sue an owner to without having to call an SGM: (a) An owner will indemnify and save recover the deductible if the owner 158 (1) Subject to the regulations, harmless the strata corporation from is considered “responsible” for the the payment of an insurance all expenses for any maintenance, loss or damage. deductible in respect of a claim on repair or replacement rendered Note: It has been established the strata corporation’s insurance is necessary to the common property, through court decisions that a common expense to be contributed limited common property, common “responsible” does not necessarily to by means of strata fees calculated assets or a strata lot if the owner or mean “at fault”. It pertains to – in in accordance with section 99 (2) or the tenant, occupant, contractor, this case – where the leak came from 100 (1). agent, guest or invitee of the owner in the first place. Since it has been (2) Subsection (1) does not limit the is responsible for the loss or damage established that the source was from capacity of the strata corporation to to the extent that the loss is not a leaky roof (common property), sue an owner in order to recover the covered by the strata corporation’s which is the strata’s responsibility deductible portion of an insurance insurance. to maintain and repair, it is therefore claim if the owner is responsible for (b) In the event that loss or damage also their “responsibility” to cover the loss or damage that gave rise to occurs to common property, limited the deductible. If common property, common assets it had emanated or any strata lot that gives rise from a pipe solely to a valid claim under the strata within the strata lot, corporation’s insurance policy the it could have been owner shall reimburse the strata deemed an owner’s corporation for the deductible “responsibility”, portion of the insurance claim if the even though the owner is responsible for the loss or leak could not damage that gave rise to the claim. necessarily have been anticipated Continued on page 15

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“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 13 BC Law Institute Strata Property Law Project - Phase Two by Pat Williams BC’s strata property legislation professionals in the strata industry Consultation Paper was circulated, has gone through three generational were consulted and the conclusion was with requests for input to be received changes. In 1966, the Strata Titles Act to proceed to Phase Two. The issues by the end of September, 2014. It was passed and it was not detailed. A that Phase One selected for reform would take far too many words to new act under the same name emerged were: describe all the changes suggested in 1974 – this Act was much more a. Fundamental changes; in that Consultation Paper. The key comprehensive and included new b. Complex stratas; change was changing the requirement concepts such as limited common c. Leasehold stratas; of every strata lot owner voting in property. That act was changed to d. Common property; favour of termination or cancellation the Condominium Act in 1980, but it e. Governance issues; – the new threshold recommended was essentially the same. The current f. Insurance issue; and was 80% of all owners in favour. This legislation, the Strata Property Act g. Land title issues. recommendation received widespread (SPA) came into force in July 1, 2000 These issues formed the mandate of approval. A further recommendation and remains the governing act. There Phase Two, which commenced July 4, was that a court order not be necessary have been legislative changes to the 2013 and is scheduled to be completed for termination. A number of industry SPA (depreciation reports, and parking by December 15, 2016. leaders were concerned that the stalls and storage lockers noted on The Phase Two Project Committee, owners and chargeholders disputing Form B’s to name a couple), but they chaired by Patrick Williams, includes termination would not have access have been not been comprehensive BCLI staff Greg Blue, QC and Kevin to the courts. The Committee has changes. Zakreski; lawyers Elaine McCormack, rethought that recommendation and The BC Law Institute (BCLI) Stanley Rule and Ed Wilson; managing the eventual report will include the implemented a Strata Property Law agent Allen Regan; consultant Garth requirement to obtain a court order to Project. In Phase One of that Project, the Cambrey; land title deputy registrar terminate a strata corporation or cancel BCLI set out to determine whether the Tim Jowett, surveyor David Parkin; a strata plan. time was ripe to begin thinking about realtor Judith Matheson; government The Committee having completed and planning for the next generation policy advisor Veronica Barlee; deputy the fundamental changes part of of strata legislation. A number of executive officer for RECBC Larry its mandate is now in the throes of Buttress; and Tony addressing complex stratas. What is a Gioventu and “complex” strata? A strata corporation with sections. As one who lives in a Sandy Wagner, representatives of sectioned strata corporation can easily CHOA and VISOA attest, sections governance can be very respectively. The difficult, complex and divisive. The Committee meets Committee continues to wrestle with monthly at a sectioning – should they be altered, minimum. eliminated, become types, and so on?  The Committee It is not appropriate to communicate  determined the the various determinations and views most pressing issue of the Committee at this time, save to •  was Fundamental comment that there is not presently •  Changes and the universal consensus among Committee • members and that each Committee  most pressing  of those was the member has a constituency that must be considered. I feel confident that •  Termination of a Strata Corporation. when a Consultation Paper on changing  Many months were the legislation with respect to complex spent addressing stratas is circulated, the Committee   this issue and by will have conducted its due diligence in a very in-depth manner and the  May, 2014 the first draft of a Continued on page 15

14 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-0222 • General information (250) 920-0688 or [email protected] BC Law Institute Strata Property Law Project - Phase Two Continued from page 14 YOUR PAGE recommendations made, while perhaps Letters to VISOA controversial, will be well thought out and all exigencies addressed. Residents Support Students at James Bay Community School Pat Williams is Chair of the BCLI Since 1997 the South Harbour Partners, a group of condo owners in Strata Property Law (Phase Two) the James Bay area, have raised funds to help support students at James Project Committee. He is a partner of Bay Community School. Students at James Bay range from Kindergarten the Vancouver law firm Clark Wilson to Grade 5. The funds raised by this group of community minded LLP, and member of the firm’s Strata citizens have helped in many ways; they have purchased technology Property Group. and reading resources and supported arts programs, just to name a few. Every Christmas, for the past 18 years, this group of Elves have prepared You Asked Goodie Bags for each child in the school. Many thanks to South Continued from page 13 Harbour Partners for supporting children in their neighbourhood! Of course, if the person wants Would you and your neighbours like to help children in need? to dispute it, they can appeal to the For further information on how you can support children in your courts, but one hopes most people neighbourhood school please contact Sandra Matthews, CommunityLINK would not want to take on such an Facilitator with the Greater Victoria School District #61. Phone 250-475- expense. 4241 or email [email protected] This also points to the need for every owner to have their North Saanich Strata Council Members personal “condo insurance” which contains a clause covering their An informal problem-solving group is planned for strata council portion of the strata’s deductible members in the North Saanich area. The group’s focus would be to share for any circumstances (including information and gather answers to the questions that arise during strata earthquake). meetings. Moreover, as indicated in the If you are on a strata council, have questions, experience or answers, first paragraph, an owner’s personal please contact Renee Woodsend at [email protected] with your insurance would have to cover any email address repair/replacement if damage has within ten days so occurred to any “improvements” a list of interested (whether by a current or former participants can be owner) to original fixtures which generated. were installed by the owner- developer. Confidentiality will be respected. Protect Your Investment We have been assisting Stratas for over > Depreciation Reports 10 years in British Columbia, and 20 SAVE years across Canada in developing their > Roofing Assessments Email us at editor@ Depreciation Reports as well as in the > Building Envelope the DATE maintenance of their buildings. Condition Assessments visoa.bc.ca VISOA 2015 Planned Seminar Dates Our network of offices provides clients > Balcony Assessments Write us at: with the depth and resources of a large > Structural Assessments national organization, while allowing the March 1 - Victoria - AGM & Seminar 306 - 620 View Street, service and accessibility of a local firm. > Project Administration COMFORT INN Victoria BC V8W 1J6 April 12 - Nanaimo BOWEN CENTRE Please include your Contact Us: Victoria: 250.386.7794 • [email protected] May 24 - Courtenay CROWN ISLE RESORT name, strata number Nanaimo: 250.716.1550 • [email protected] June 28 - Victoria COMFORT INN and telephone number. Letters www.rjc.ca September 20 - Nanaimo BOWEN CENTRE and emails may be Vancouver • Victoria • Nanaimo • Calgary • Edmonton • Lethbridge • Kitchener • Toronto • Kingston November 15 - Victoria COMFORT INN published on-line.

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 15 STRATA – DOCUMENT RETENTION GUIDE STRATA - DOCUMENT RETENTION GUIDE

TYPE OF DOCUMENT MINIMUM RETENTION PERIOD List of council members Current copy

List of owners including: Current copy - strata lot addresses - mailing addresses (if different); - strata lot numbers as shown on the strata plan; - unit entitlements; - names and addresses of mortgagees who have filed a Mortgagee’s Request for Notification under section 60 of the Strata Property Act (SPA); - names of tenants, - assignments of voting or other rights by landlords to tenants under sections 147 and 148 of the SPA.

Strata Property Act and the Regulations. Current copy

Strata Bylaws and Rules. Current copy

Personal information collected in the course of a bylaw One year from the date that the infraction matter. original decision was made by the strata corporation

All correspondence sent or received by the strata Two years corporation and strata council

Bank statements Six years

Book of accounts showing money received and spent and Six years the reason for the receipt or expenditure.

Budget and financial statement for the current years and Six years for previous years.

Cancelled cheques Six years

Certificates of deposit Six years

Income tax returns, if any. Six years

Information Certificates issued under section 59 of the Six years SPA.

Minutes of annual general meetings. Six years

Minutes of special general meetings. Six years

Minutes of strata council meetings. Six years

Waivers and consents under sec. 41, 44 or 45 of the SPA. Six years

Financial records obtained under section 23 of the SPA, if Six years after the transfer of control any. referred to in section 22 of the Act. Insurance policies. Six years after the termination or expiration of the contract or policy.

16 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-02221 • General information (250) 920-0688 or [email protected] STRATA - DOCUMENT RETENTION GUIDE

TYPE OF DOCUMENT MINIMUM RETENTION PERIOD

Written contracts entered into by or on behalf of the strata Six years after the termination or corporation by the owner developer. expiration of the contract or policy

Written contracts to which the strata corporation is a party. Six years after the termination or expiration of the contract or policy Any reports obtained by the strata corporation respecting Retained until the disposal or repair or maintenance of major items in the strata replacement of the items to which the corporation, including, without limitation, engineers' reports, reports relate. risk management reports, sanitation reports and reports respecting any items for which information is, under section 94, required to be contained in a depreciation report

All warranties, manuals, schematic drawings, operating Retained until the disposal or instructions, service guides, manufacturers' documentation replacement of the common property and other similar information respecting the construction, or common asset to which they relate, installation, operation, repair and servicing of any common or the expiration of the warranty property or common assets, including any warranty coverage, whichever comes information provided to the owner developer. first.

Any decision of an arbitrator or judge in a proceeding in Permanently which the strata corporation was a party, and any legal opinions obtained by the strata corporation.

The registered strata plan as obtained from the Land Title Permanently Office.

Resolutions that deal with changes to common property, Permanently including the designation of limited common property.

Names and addresses of all contractors, subcontractors Permanently and persons who supplied labour or materials to the project, as required by the regulations.

Any disclosure statement required by the Real Estate Permanently Development Marketing Act or section 139 of the Strata Property Act.

All plans that were required to obtain a building permit and Permanently any amendments to the building permit plans that were filed with the issuer of the building permit.

Any document that indicates the actual location of a pipe, Permanently wire, cable, chute, duct or other facility for the passage or provision of systems or services, if the owner developer has reason to believe that the pipe, wire, cable, chute, duct or other facility is not located as shown on a plan or plan amendment filed with the issuer of the building permit.

Any depreciation reports obtained by the strata corporation Permanently under section 94.

This document was prepared in accordance with the Strata Property Act and Regulations, and PIPA. 2009-09-07 (As of 1 ThisOctober, document 2014) was prepared in accordance with the Strata Property Act and Regulations, and PIPA. 2009-09-07 (As of 1 October, 2014)

“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 17 2 INTRODUCING NEW BUSINESS MEMBERS VISOA is pleased to welcome these new Business Members. See our website for more details on all our Business Members

STRATA RESERVE PLANNING assists clients by providing clients BARTLETT TREE EXPERTS is an international company, whose with a choice of financial options and a recommendation local well-experienced arborists have provided a variety of for a financial plan to fund repairs and replacements while services to help their customers in the Capital Region and the minimizing the need for special assessments and strata Cowichan Valley for more than 10 years. They are experts loans. They also provide a guide to strata corporations for in diagnosing and treating problems to help protect your supporting the market value of their complex and all units plants as well as your landscape investment. Contact Kailey in re-sale values. Contact: Toll Free: 1-855-2828 for more MacLeod at 250-479-3873 or [email protected] for information. On the web at stratareserveplanning.com written estimates and yearly tree and shrub maintenance plans. See www.bartlett.com for more information. PALMER APPRAISALS has served at the forefront of real estate appraisals to meet the needs of clients on Southern and CLEAN AIR YARD CARE – guided by their vision “…to make Central Vancouver Island, and the Gulf Islands, for over a significant and measurable impact on the reduction of 25 years. The wide scope of appraisals and other services air and noise pollution from the landscape and yard care provided by its team of highly qualified, licensed appraisers industry using renewable energy” – uses solar powered is listed on their website at www.palmerappraisals.com . machines to reduce noise pollution and eliminate carbon Contact: Louise McGee at 250-388-9102 emissions from gasoline powered equipment and put TORBRAM ELECTRIC SUPPLY owner’s minds, ears and lungs at ease! They are pleased to supplies of a wide range of offer stratas a FREE estimate and demonstration based on a environmentally friendly electrical products for application, unique contract to suit the landscape, budget and timetable renovation and replacement projects in strata corporations, of each strata. Contact: Richard Larkin 250 889-5375. including homes and commercial uses. Torbram works [email protected] www.cleanairyardcare.ca with strata corporations and contractors to assist stratas in developing long range plans to address replacement and These businesses have chosen to support our member strata upgrading of electrical systems throughout the corporation. corporations and owners by joining VISOA’s growing group Torbram offers free energy audits to strata corporations. of Business Members. We encourage all our members to Contact: [email protected] or jmckinnon@ return the support we receive from the business group by torbram, or phone 250 480-4818 including these businesses in their consideration for provision of services for their corporations.

A Big Thank You to all VISOA’s volunteers:

Alice Blasutig Elizabeth Chase Marlyne Smith Shawn Fehr, BA, CAIB, CIP, Ann Scott Elsie Lockert Martina McComb provides expert advice whether Barbara Zimmer Gloria Martins Mike Dennison you’re insuring a duplex or a 500- Betty Taylor Jen Nemeth Nancy Stewart Bev Grubb Jill Davies Pat Chern unit strata complex. Call him Brian Smith John Carver Pat Davis today for a competitive quote! Carol O’Fallon Karen Krossoy Pat Dupuis 250-652-1141 or email Claire Tugwell Kelly Konrad Paulette Marsollier Claudio Procopio Kelsey Ye Peter Blumel [email protected] Cleve Patterson Loretta Nichols Peter Kanigan Daryl Jackson Lorraine McDonald Ray Webber SeaFirst Insurance Brokers have been Dave Gerrand Maida Neilson Renee Gagne providing our clients with the finest Diana Marsh Malcolm Watkins Sheri Hall Diane Runnals Margaret Lounds Tony Davis in general insurance services on the Don Luke Marion Davis Nico Lohman Island for over 40 years. Lu Den

18 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-0222 • General information (250) 920-0688 or [email protected] Civil Resolution Tribunal Update, January 2015 By Shannon Salter, CRT Chair This promises the CRT’s online platform. I will be CRT tribunal members in the near to be a busy and sharing more detailed information future. The deadline for applications exciting year for about the technology development is February 3, 2015. For more the Civil Resolution and testing in the coming months. information about the position and Tribunal! There have We are moving forward with hiring the application process, please see the been several key staff and appointing tribunal members. Board Resourcing and Development milestones towards I am pleased to welcome our first staff Office posting (www.brdo.gov.bc.ca). implementation since member, Richard Rogers, who is the Finally, I have continued to meet my last update in October 2014. acting Registrar/Executive Director with groups, big and small, to provide Last November, we launched on a temporary assignment during the information about the CRT and answer an implementation website for the CRT’s implementation phase. Richard questions about its operation. In CRT: www.civilresolutionbc.ca. The has a legal background and provides particular, we have been working with website has information about how a wealth of experience in tribunal community advocacy organizations the tribunal will work, updates on management, government policies to ensure that the CRT develops a implementation, guest posts on a and processes, and financial analysis. clear understanding of the needs of variety of issues related to the CRT, Richard will be a tremendous asset to participants with barriers to accessing as well as a way for the public to the CRT during this important time in the justice system, and that we explore provide feedback and ask questions. its development. options to address these needs. The response to the website has been As with most tribunal members in As we work towards very positive, with lots of engagement B.C., the CRT’s tribunal members implementation, I will continue from the public, particularly those are appointed by the provincial to give you regular updates. In the who look forward to using the CRT to government, in consultation with meantime, be sure to check out resolve strata disputes. the Chair of the Civil Resolution the CRT implementation website Late last fall, we selected a Tribunal. The provincial government (www.civilresolutionbc.ca) for more technology partner, which will build will be appointing several part-time information.

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“Assisting Strata Councils and Owners since 1973” VISOA Bulletin February 2015 • 19 kept on file permanently. parts of the SPA. • Change is also inevitable at the One thing that has not changed – VISOA Board. At our AGM March we value your input. If you have any 1st, we will be saying goodbye questions or comments at any time, email In this issue of to three board members who are me at [email protected] the Bulletin, we not seeking re-election. Harvey highlight changes. Williams has served the board Sandy Wagner, for 14 years including 2 terms as VISOA Board President President, and is the voice of our In closing, here are some interesting Helpline. Harvey will continue quotes on the subject of “change”. to answer the Helpline calls on a • Shannon Salter, the Chair of the volunteer basis. Deryk Norton has “Change is the law of life. And those who Civil Resolution Tribunal, talks been our Bare Land Strata expert look only to the past or present are certain to about changes in the way stratas and Government/Media Relations miss the future.” will handle disputes in future in an person for the past eight years, ­­— John F. Kennedy article written for VISOA members. and will be continuing to volunteer “Progress is impossible without change, and • The BC Law Institute will be with Google Ads. Esther Harvey those who cannot change their minds cannot recommending some changes has been our Treasurer for the past change anything.” to the Strata Property Act in the two years. We will miss all three of — George Bernard Shaw future, after much discussion and these outgoing board members! consultation. Patrick Williams, the “If you don’t like something, change it. If you can’t change it, change your attitude.” Chair of the BCLI Strata Property At our AGM, to be held Sunday — Maya Angelou Law Project (Phase Two) has an March 1st, we will ask you to update for us. approve criteria for Honourary “There is nothing permanent except change.” • Two recent court cases, while Lifetime Membership. The — Heraclitus not “changing” the SPA, certainly current bylaw states “Criteria for give clarity to parts of it and may Honourary Lifetime Membership “Never believe that a few caring people can’t change the world. For, indeed, that’s all change the way stratas view their shall be set from time to time at a who ever have.” responsibilities regarding repairs, General Meeting”. At that AGM we — Margaret Mead and rental restrictions bylaws. See do hope to award some members the article on page one for more with lifetime membership. You details and links to the actual court will need to attend the AGM to see BULLETIN SUBSCRIPTIONS decisions. whom we honour! See our website VISOA provides 4 information-packed • Depreciation Reports - have for the AGM package. bulletins each year. you changed your mind? We at Following our AGM, we will • Corporate membership fees include emailed VISOA hope we have educated our have two guest speakers. Veronica bulletins to up to 4 council members. members on the importance of the Barlee of the Provincial Office • Individual membership fees include emailed Depreciation Report – but there of Housing and Construction bulletins. are still over 5000 stratas in BC Standards, to inform us on the new • Postal mailed bulletins are available to who have not yet completed one. strata information website which members for $15 annually per address. Non- Some of the “reasons” (excuses?) will eventually replace the Strata members may subscribe to these bulletins at are highlighted in an article by Property Guides. (More changes!) the following rates: David Albrice of RDH Building After Veronica’s presentation we By email: $15.00 per year and by postal Engineering Ltd. will hear from strata lawyer R.C. mail $25.00 per year • VISOA’s publications are changing (Tino) Di Bella. Tino will enlighten - we are going digital, as explained us on recent court cases that set in a short article on page 5. precedents for changes in the ~ DISCLAIMER ~ • Three years ago we published a way stratas undertake repairs, and The material in this publication is intended for informational purposes only and cannot replace “document retention guide” and we requirements for rental bylaws as consultation with qualified professionals. Legal include an updated version in this mentioned above and on page one. advice or other expert assistance should be issue. The change to note is that Tino will also help us to understand sought as appropriate. any depreciation reports must be Proxy Voting, one of the vaguest

20 • VISOA Bulletin February 2015 VISOA Helpline: (250) 920-0222 • General information (250) 920-0688 or [email protected]