Court permits sale of West End strata over objections of some owners

A small group of West End Vancouver condo owners have lost their bid to stop their building from being sold by a majority of their neighbours.

In 2016, changes took effect to the law governing strata properties to allow for residents to force a sale if 80 per cent of owners were on board. Previously, sales had required a unanimous decision.

However, under the new rules, any such sale must clear court oversight to ensure the sale is both conducted fairly and in the best interest of owners.

On Dec. 22, a B.C. Supreme Court judge ruled that both of those conditions were met by residents looking to wind-up and sell The Hampstead, a 29 year old building at 1188 Cardero Street.

Prior to going to court, the strata held two votes on the sale, both of them clearing the 80 per cent mark.

Six of the building’s 33 unit owners fought the sale, arguing that they felt intimidated by the pro-sale owners, and had expected to live in their units for as long as they wanted, according to the ruling.

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Court documents show others opposing the sale worried they could be forced out of the neighbuorhood, and one argued he had recently renovated his condo to be wheelchair/disability friendly, and still owed $20,000 on the work.

Those looking to sell argued that the building was getting too expensive to maintain. Residents had spent nearly $500,000 on work in 2014-2015, and were looking at an estimated bill of $675,000 in 2018, according to the ruling.

The building, which sits in an area of the West End recently rezoned for higher density, was also the focus of significant interest from developers.

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According to the ruling, the deal negotiated by the strata corporation with developer Townline would pay out $45.25 million, 2.5 times what owners would likely receive if they they sold their units individually.

In her ruling, the Justice Loo sided with the pro-sale owners, finding that anti-sale owners were not the subject of intimidation, that residents were unlikely to be forced out of the community and that the majority’s right to realize a profit on their property was as valid as the minority’s wish to remain in their units.

Justice Loo also rejected the argument that owners who had bought before the 2016 strata law changes have the reasonable expectation to live indefinitely in their units.

The case is the second such court battle in recent months in which owners looking to sell had met the 80 per cent threshold.

In September, a minority of owners successfully defeated the sale of the Bel-Ayre Villa in Vancouver’s Fairview neigbourhood.

In that case, the judge found the strata corporation had failed provide a key financial document to owners ahead of the sale vote, in contravention of the new strata sale legislation.