11/05/2018 – Jurisdiction British Columbia
Part 62 published on 01/06/2018
Strata Council did not require approval by vote of the owners before hiring a realtor to solicit purchase offers on the building
In 2017, the Strata Council started to receive requests from realtors about possible sale of the property. After some “straw vote” feedback from owners, the Strata Council announced its intention to retain a realtor to solicit purchase offers. A group of owners petitioned for an order that the Strata Council did not have authority to do so.
The Court held that the Strata Council did have authority, on its own accord, to retain a realtor. The Court said:
As indicated by the provisions I have referred to in the Strata Property Act, no strata corporation can be wound up, cancelled or dissolved without a resolution passed by 80% of the members and court approval. Should the matter proceed to a vote and pass by 80% of the owners, the court will then consider whether to confirm the winding up resolution, having regard to factors such as whether it is in the best interests of the owners, whether there is significant unfairness to those involved and any significant confusion and uncertainty over the matter.
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…a 75–80% requirement to take a preliminary step (such as the retention of a realtor) would seem to me to unnecessarily introduce a cumbersome procedural requirement, make it difficult for the Strata Council to solicit offers so that the owners judge the benefits of a wind-up for themselves, and fail to allow for the possibility of a substantial increase in ownership support if highly favourable offers come in.
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As to the petitioners’ other attempts to limit other future actions of the Council in exploring the marketability of the building, such as through the expenditure of strata council funds, I am equally hesitant at this early point to place advance limitations on the Council’s ability to move forward with the early stages of exploring the wind-up process.