Prior to the government’s enactment of Bill 40, if a strata corporation wanted to dissolve itself and sell the building, it needed unanimous approval. If it could not get unanimous approval, it had to go to court and convince a judge that the dissolution and sale was necessary – mostly because the buildings were in such bad shape that they were virtually uninhabitable.
Where buildings are well past their ‘best before date’ and need more repairs than the cost would justify or the owners can afford (especially those on fixed incomes), but where some owners are still reluctant to sell because of the difficulty in finding other homes in the current housing market, Bill 40 is probably a godsend.
In Vancouver, in particular, older condo buildings are being stalked by developers looking to turn what is now an under built property into a significant profit. The money being offered to owners certainly looks like a golden ticket to retirement for some, but for others it is a more difficult choice. To cash in and move somewhere more affordable is not something everyone can do.
It is difficult to balance the interests of all owners. Although one holdout (or even a small group of owners) can no longer override the desire of all of the other owners to sell, the 20% who would prefer to stay will be unable to rule the day unless they can convince other owners to join them.
For those in the minority who will have difficulty re-locating, there needs to be some support or assistance. This is yet another political issue for the government of the day to address. In today’s market, it will not be an easy task.
MORE RESOURCES
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Change in B.C. strata law has unintended consequences