Part 53 published on 01/02/16
Purchaser of undeveloped phase of strata plan qualifies as “owner-developer” and as such is liable to contribute to the strata’s common facilities expenses
On July 19, 1994, Park Ridge Development Ltd. filed a “declaration of intention to create a strata plan by phased development” on certain lands. The declaration called for 220 strata lots to be developed in four phases. Phases I, II and III were developed and sold. Phase IV had not yet been completed, and remained as bare land. The Phase IV lands represented a 28.18% interest in the entire strata plan. The strata’s common facilities had been completed, consisting of an exercise room, meeting room, lap pool, jacuzzi, changing room and guest rooms.
Park Ridge sold the undeveloped Phase IV lands, and those lands were ultimately acquired by 0753874 B.C. Ltd.
The Court determined that 0753874 B.C. Ltd. was an owner developer and as such was liable to contribute to the Strata’s common facility expenses in accordance with Part 13 of the Strata Property Act. The Court said:
075 argues that s. 220 (of the Strata Property Act) does not apply to it because Park Ridge, the owner developer, did not transfer its “interest in land described in a Phased Strata Plan Declaration” but, rather, only a portion of its interest. I do not, however, agree with this restrictive interpretation of the section. In my view, it can apply to the transfer of any undeveloped phase, consistent with the fair, large, and liberal interpretation mandated by the Interpretation Act. In that case, the scheme under s. 227 would continue to apply to the transferee.