11/23/2018 – Jurisdiction British Columbia
Part 64 published on 12/01/2018
Short-term licenses did not contravene corporation’s by-laws and did not trigger Section 146 of the Strata Property Act
In this recreational strata property, the petitioning owners hired a management firm to arrange for short-term occupancies of their strata lot (during times when the lot was not being used by the owners). The strata corporation argued that these occupancies contravened the corporation’s by-law prohibiting short-term rentals (ie. rentals of less than 30 consecutive days) and/or the corporation’s by-law prohibiting commercial uses.
The Court held that
- the particular occupancies were “licenses” that did not contravene the short-term rental by-law.
- the use was also not a business use and accordingly did not contravene the by-law prohibiting business uses.
The Court also held that Section 146 of the Strata Property Act (requiring that landlord’s supply to the strata corporation Form K’s signed by their tenants) does not apply to such short-term licenses.
The Court said:
(Previous) cases establish the following principles, which I agree with:
- a) A person may occupy a strata lot under a tenancy agreement or a license agreement.
- b) A tenant is a person who rents all or part of a strata lot and who, through that arrangement, receives an interest in the property including exclusive possession of the premises.
- c) An occupant is a person other than an owner or tenant who occupies a strata lot.
- d) A licensee is an occupant but not a tenant.
- e) Provisions of the Strata Property Actwhich relate to tenants and tenancies do not apply to licencees.
I find that the agreements Cobblestone enters into with guests are license agreements. The agreements permit guests to use the property on a short-term basis, and do not purport to convey an interest of any kind in the property to the guests. I find there is no intention to create a tenancy in the license agreements.