STRATA: Bare-land strata and a building-type strata

In basic terms, there is no operational difference between a bare-land strata and a building-type strata, commonly referred to as townhouses or condos.

Unlike a building-type plan, in a bare- land strata, the strata corporation has no insurable interest in buildings not shown on the strata plan. The result generally is that the house is entirely part of the strata lot and the repair, maintenance and insurance of the bare land strata lot and home is normally the responsibility of the strata lot owner.

But don't be fooled by only reading the plan. A strata corporation may take responsibility for certain portions of a strata lot. To understand if the strata is going to be paying the bills for any parts of a strata lot, you would have to read the bylaws before you purchase.

For example, where all of the homes are identical on a bare land, the developer or strata owners may have created or adopted bylaws where the strata will be responsible for building exteriors to ensure they are routinely repaired and maintained.

The strata corporation may adopt bylaws that prohibit rentals, set age restrictions, limit or restrict pets, parking, use of common facilities and even go as far as determine the colour of your house or alterations to your strata lot.

Bare land owners are also subject to strata fees, special levies and settlements of law suits. Before you buy, read the bylaws and review the strata plan.

Find out what common facilities you are going to be paying for. Request a copy of the strata insurance policy. Even a bare-land strata must retain insurance for a minimum of $2 million in liability insurance and fully insure its common assets.

If the strata hosts its own water and sewage facilities, those are costs you will be paying for in the future.

(prepared by Tony Gioventu/Vancouver Province)