Frequently Asked Questions

Once the strata corporation's financial obligations are met, any remaining funds (including operating, contingency, or unspent levy funds) are added to the sale proceeds and distributed based on the sale allocation formula.

The strata can negotiate post-sale occupancy terms. Owners may remain temporarily, either rent-free, at an agreed rental rate, or a mix of both (e.g., three months rent-free, followed by rental payments).

There are many variables that will affect timing, but a typical timeline from the point at which a strata council is satisfied that the owners wish to pursue the possibility of a windup and sale would be about 18 months (give or take 6 months) until the sale closes and owners receive sale proceeds.

The strata corporation is still responsible for repairs and maintenance of common property under the Strata Property Act, even if the intent to sell stems from the inability to afford repairs. These obligations must be met until the sale is finalized.

The council acts on behalf of the strata corporation, hiring professionals, managing the process, and keeping owners informed. They also gather and present evidence when the court reviews the vote to confirm the sale and windup.

The law was updated to provide a solution for strata owners who can't afford necessary repairs and replacements to extend their building's life. It also allows any strata corporation to pursue a wind-up if over 80% of owners vote in favour, with court confirmation required if fewer than 100% approve.

Developers often base their offers on redevelopment potential. The price is typically calculated per buildable square foot, influenced by zoning regulations and land use plan designations, which dictate what can be built on the property.

Typically, the purchase agreement requires all tenancies to be terminated by closing. Owners usually cannot continue renting their units, even if they choose not to live in them post-sale.

Yes, you can sell your unit at any point during the windup process. The strata's efforts to pursue a windup do not prevent individual owners from selling their units privately.

An 80% vote requires agreement from 80% of all owners on title, not just those attending the meeting. Non-attendance or abstaining from voting is effectively counted as a "no" vote.

The court evaluates the interests of all parties, focusing on:

• The best interests of owners.
• Potential unfairness to any owner or charge-holder.
• Potential confusion or uncertainty in the strata corporation's affairs if the windup proceeds or doesn't.

The timeline varies, but key steps include:

• Filing the application within 60 days of the vote.
• Serving the application (1 to 6 weeks).
• Scheduling the hearing.

If no one opposes the application, the process can take a few weeks. If opposition arises, it may take months for the hearing.

The Strata Property Act outlines how sale proceeds are allocated. This is typically based on either:

1. Schedule of Unit Entitlement for strata corporations formed before August 1974, or
2. Schedule of Interest on Destruction for those formed between August 1974 and 2000, or
3. Relative Assessed Value for strata corporations formed from July 1, 2000 to the present.

Options 1 and 2 are based on unit size or estimated value when the strata was created and do not consider renovations or upgrades, while option 3 does.

Unfortunately, no. The formulas for dividing proceeds don't account for individual unit upgrades, and developers typically base their offers on land redevelopment potential, not individual improvements.

If you're looking for detailed summaries of what was discussed in each meeting, you will need to contact your strata directly for the official meeting minutes, if any were made.

At a high level, our discussions have primarily focused on the sales and marketing process, as well as addressing questions from owners. To make this information easily accessible, we've put together a brochure that outlines the key points. You can find these details on the Process Overview and FAQ pages of this website.

Our commission for this project is 3.5%. For projects of this nature, market commission typically ranges between 3% and 6%.

While this might seem like a significant amount, it's important to consider the risk we take on. We have now been working on this project for about nine months, with it only being listed in December. During this time, we have already incurred thousands of dollars in expenses and dedicated countless hours to getting the process to where it is now, with much more work still ahead. Our compensation is entirely contingent on a successful deal, meaning we continue to invest time and money with no guarantee of a return.

Beyond that, our team specializes exclusively in commercial transactions. We have the historical qualifications, education, and experience necessary to bring a project of this scale to completion. Unlike a typical sale, this process must strictly follow the Strata Property Act; any misstep could result in the deal being thrown out in court. A significant part of the value we bring is in structuring, negotiating, and ensuring the deal successfully makes it through the court process.

1. Professional Fees

• Appraisal Costs: to estimate the strata's market value.
• Legal Fees: for retaining a lawyer to guide the wind-up process and court approvals.
• Real Estate Commission: marketing, soliciting and negotiating offers.
• Liquidator Fees: if a liquidator is required to manage the process.

2. Administrative Expenses

• Strata Administration Costs: includes obtaining necessary resolutions (e.g., 3/4 vote).
• Public Notices and Creditor Notifications: required legal notices published for transparency.

3. Sale-Related Costs

• Court Fees: if court approval is required for the transaction.
• Other Closing Costs: any transaction-related costs to finalize the sale.

4. Debt Settlement

• Outstanding Strata Liabilities: any debts owed by the strata (e.g., unpaid maintenance fees, legal claims).

5. Distribution to Owners

After all disbursements, the remaining net proceeds are distributed among owners based on the Schedule of Interest on Destruction as per the Strata Property Act.

When an offer is presented, owners will be shown both the gross value and the net amount after deductions. This ensures transparency so owners can make an informed decision on whether to proceed.

We will shortly provide you cost disbursements with a hypothetical scenario, utilizing an offer of $10 million.

We are currently in the marketing phase of the sale process. At this stage, we are actively sending information packages to developers and receiving responses and interest in the project.

To date, we have:

• Prepared marketing materials to present the opportunity effectively.
• Engaged with developers and industry contacts to generate interest.
• Fielded inquiries and responded to questions from potential buyers.

As interest builds, we will continue discussions with developers and move towards securing offers. The exact timeline will depend on market response, negotiations, and due diligence, but we will keep owners updated as key milestones are reached.

Our team brings a comprehensive skill set to this project, ensuring a smooth and strategic sales process. Here's a breakdown of our key team members and their roles:

• Charles Wiebe (CDW & Associates, RE/MAX Commercial Advantage): Team Leader for this project, overseeing the overall strategy, negotiations, and execution.
• Scott Olson (Macdonald Realty): Residential Market Expert and Facilitator, providing insight into market trends and guiding residential owner communications.
• Logan Crowder (CDW & Associates, RE/MAX Commercial Advantage): Analyst and Development Coordinator, handling project analysis and liaising with developers to ensure a strong positioning of the property.
• Michael Hwang (RE/MAX Commercial Advantage): Lawyer, with 30 years of commercial experience, giving another level of legal oversight on all negotiated contracts and documents.
• CDW & Associates, RE/MAX Commercial Advantage: our full commercial team is also working behind the scenes to support the marketing, negotiations, and overall execution of this wind-up process.

Download the CDW team overview (PDF)

In large development projects, prices are often not listed in marketing materials for strategic reasons:

• Price Flexibility: developers can gauge market interest and negotiate better deals without being tied to a fixed price.
• Buyer Vetting: requiring inquiries helps filter out less serious buyers and assess financial capability.
• Avoiding Anchoring: not setting a price prevents buyers from fixating on a specific number, keeping negotiations open.
• Property Complexity: unique or complex projects don't always fit standard pricing models, and value can vary based on buyer use.
• Market Strategy: developers can adapt pricing based on changing market conditions and buyer feedback.

This strategy helps developers optimize returns and maintain control over the sales process.

It's still too early to fully gauge the long-term effects, but the recent tariffs between the U.S. and Canada are already raising concerns for residential development in Greater Vancouver.

Construction costs are expected to rise due to higher prices on key materials like lumber, steel, and aluminum, materials heavily used in local projects. Developers might also face supply chain disruptions as they look for non-U.S. suppliers, potentially causing logistical hiccups.

These added costs could impact housing affordability, with developers likely passing them on to buyers. Some projects may even face delays or cancellations, further tightening an already limited housing supply.

While there's clear short-term pressure, the broader economic impact remains uncertain. A temporary slowdown in development is possible, but things could stabilize over time with policy responses or market adjustments. On a more positive note, the situation may open doors for local material suppliers, as developers pivot away from U.S. sources.

Thank you for your question, it's an important one.

While it's true that the market for individual condo sales has started to soften, strata wind-up sales operate on a different dynamic. When prices were at their peak, a strata wind-up typically offered a significantly higher value to owners than an individual condo sale. Even now, with prices easing, the net amount each owner receives in a successful wind-up is still expected to be substantial.

This is because a wind-up sale isn't based solely on current condo market values; it's driven by the redevelopment value of the land as a whole. Developers are generally looking at long-term potential, not just today's unit resale numbers.

In short, while the total sale price for the building may reflect current market conditions, we don't see the net proceeds to owners decreasing in any meaningful way. Our goal remains to achieve the best possible outcome for all owners. Even in a softer market, a wind-up continues to be one of the most financially beneficial exit strategies available for this strata corporation.

If you are enquiring about a mortgage that is currently in place, your first contact should be your current mortgage provider. They will know all the features and benefits specific to their mortgage product. If you feel you are not receiving proper advice or attention, seeking a second opinion with another lender is recommended.

Speak to your current mortgage provider and explain what is happening. Ask what options they can offer you. For example, most institutions offer open mortgages that have no penalty if you sell, but the interest rate may be higher. If you are planning to purchase another property, ask if their mortgage can be ported (moved) to the next home. They also may have other alternatives for you to consider. Once you have figured out your best option with your current lender, it's a good idea to seek a second opinion from another mortgage professional to compare your options.

This is a question to ask your current lender. Similar to the previous question, your lender may have options to move the mortgage to another property without a penalty, or they may have other options to help reduce or eliminate the penalty if you take out a new mortgage on your purchase.

Some mortgages offer a portability feature allowing you to transfer the mortgage to a new property under certain conditions. There are also replacement policies where your existing lender may cover some portion of the penalty and still allow you to take a new mortgage term if rates are lower. And as mentioned before, always get another competitive opinion.

Certainly. We have agreed to act as consultants during the windup to assist you through the process and are available to answer any questions you might have.

The formula is:

Sale Price (SP) minus Adjusted Cost Base (ACB) = Capital Gain (CG)

Taxable Capital Gain (TCG) = CG x 50%

The TCG is the amount added to your income tax return and is taxed at your marginal tax rate.

ACB is the sum of:

1. Purchase price plus closing costs such as GST (if purchased new), property transfer tax, legal fees, etc.
2. Renovations and other capital expenditures made to the property after purchase that either improve the property or extend its useful life. Examples include a new roof, new windows, new mechanical (boiler, furnace), costs to remodel the home, new cabinets, etc. Costs to maintain the property (i.e. repairs, regular landscaping) are not capital expenditures.

Unless there is some other basis to conclude that the property ownership split is other than an equal split, the CRA will assume that the property is owned equally by all parties on title. If there are two owners, like a husband and wife, the capital gain is split between them and reported on their tax returns at their split amounts. If there are multiple owners, such as when several people combine their money to buy a property, the capital gain is split equally among the number of owners on title. For example, if five people buy the property then each will be allocated 20% of the capital gain. Sometimes partners will have a larger or smaller share of the ownership of the property. In those cases, the title to the property will show the percentage of each person's ownership and the CRA will assess the capital gain based on those percentages. For example, if three people are on title and one person owns 50% and the other two own 25% each, then the one that owns 50% will be responsible for 50% of the capital gain and the other two will each be responsible for 25%.

There are exceptions; for example, sometimes senior parents will put their adult children on title for estate planning purposes. When properly set up, the children are not beneficial owners of the property and would not be allocated any portion of the capital gain.

The lifetime capital gains exemption only applies to a very narrow group. It applies to the sale of farm property and shares of qualified small business corporations. It doesn't apply to the sale of investment property.

There are ways to reduce the impact of the capital gain. For example, if you have RRSP contribution room, then making an RRSP contribution for the year of the sale will reduce your taxable income and reduce your income taxes payable.

If you didn't own any other property at the same time as this one, then you would have the principal residence exemption available to you. This would result in a full exemption of the capital gain. If you did own other property at the same time (i.e. a vacation property), then you would still be eligible for a full principal residence exemption if you did not designate your vacation property as your principal residence for any years during which you owned the properties at the same time. Consult your accountant or connect with Jimmy for further questions.

If this situation applies to you, please consult your accountant or connect with Jimmy, as there would be several variables before a determination could be made on the amount of your capital gain.

Yes, the Strata formally obtained the necessary permission by way of a 3/4 vote of the quorum on September 28, 2023, which was required to authorize council to fund legal fees for a lawyer and hire a Realtor to list the property.