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Commercial Real EstateBCMEDIUM

A BC commercial strata corporation has a bylaw requiring strata council approval before any owner leases a strata lot. An owner wants to lease a unit to a business tenant. Under the Strata Property Act as it reads today, what is the effect of the bylaw?

Correct Answer

A) The bylaw is unenforceable, because the Act bars strata corporations from restricting rentals

Since the 2022 amendments, Strata Property Act s. 141 says a strata corporation must not require the approval of tenants or otherwise restrict the rental of a strata lot, and s. 121(1)(c) makes a bylaw unenforceable to the extent it restricts an owner's right to lease. Neither provision is limited to residential lots, so the approval bylaw cannot stop the lease. The tenant must still follow the strata's other bylaws and rules.

Answer Options
A
The bylaw is unenforceable, because the Act bars strata corporations from restricting rentals
B
The owner must get council approval before leasing, because a valid bylaw binds every owner
C
The bylaw is enforceable, because the Act's rental protections cover only residential strata lots
D
The owner may lease without approval only while keeping all strata fees fully paid up

Why This Is the Correct Answer

This answer is correct. Strata Property Act s. 141 prohibits a strata corporation from requiring the approval of tenants or otherwise restricting the rental of a strata lot, and s. 121(1)(c) makes a bylaw unenforceable to the extent it prohibits or restricts an owner's right to lease the strata lot. The only surviving exceptions in s. 121(2) concern sale-activity bylaws and age-restriction bylaws, not leasing. Because the Act speaks of any 'strata lot', the commercial owner may lease without council approval.

Why the Other Options Are Wrong

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Key Terms

Strata Property Act s. 141unenforceable bylaws s. 121commercial strata leasingrental restriction bylawsstrata tenants
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