Assignment 4

Question 1

Question 1
John has a fixed term tenancy in Bill’s building that expires on August 31st. Previously, the tenancy was intended to continue as a periodic tenancy after the expiry of the fixed term. However, Bill has recently decided that he wants to renovate the suite and that it must be vacated in order for him to do so. John pays his rent on the first of the month. On March 20th, Bill obtains an Order
from the Residential Tenancy Branch, approving Bill’s application to end John’s tenancy for renovations. What is the earliest possible date on which the Residential Tenancy Branch may order John to vacate?

1. March 31st
2. April 30th
3. July 31st
4. August 31st

Answer 1

R-E-N-O (4 months, for periodic)

Correct Answer: 4

In the event a landlord wishes to end a tenancy to carry out renovations or repairs, the landlord must first apply to the Residential Tenancy Branch requesting an order ending the tenancy and granting the landlord possession of the rental unit (see section 49.2
of the Act). In order to be successful, the landlord must satisfy the Residential Tenancy Branch that:

a. the landlord intends in good faith to renovate or repair the rental unit and has all the necessary permits and approvals
required by law to carry out the renovations or repairs;

b. the renovations or repairs require the rental unit to be vacant;

c. the renovations or repairs are necessary to prolong or sustain the use of the rental unit or the building in which the rental
unit is located; and

d. the only reasonable way to achieve the necessary vacancy is to end the tenancy agreement.

If the Residential Tenancy Branch grants an order ending the tenancy, then the move-out date under the order can be no earlier than four months after the date of the order and would have to fall on the last day of a rental period. If the tenancy is a fixed-term tenancy, the move-out date can be no earlier than the end of the fixed term, even if the end of the fixed term is greater than four
months after the date of the Order.

Question 2

Question 2

A tenant has been renting a basement apartment from the landlord for over two years on a regular month to month periodic tenancy, without any rent increases. The tenant has received three months’ written notice from their landlord that the rent will be
increased from $1,600 to $1,625 per month. The tenant knows that similar basement suites in the neighbourhood are renting for only $1,500, and they think that the rent increase is the landlord’s way of trying to get them to move out of the house. They are
contemplating terminating the tenancy in order to find something cheaper, but before giving their notice to the landlord, they ask your opinion. You correctly advise them that:

1. for periodic tenancies, the Residential Tenancy Act requires four months’ written notice for a rent increase. Accordingly, the rent increase is not effective.
2. provided the increase is not more than the change in the Consumer Price Index (CPI) over the past year, the increase is allowable, and they have no right to dispute the increase.
3. in periodic tenancies, the Residential Tenancy Act requires that the notice for rent increases be reasonable. As such,
   one month’s notice would likely have been sufficient.
4. the Residential Tenancy Act requires all rent increases to be justifiable. Because similar suites in the neighbourhood rent for significantly less, this rent increase will likely not be enforceable.

Answer 2

Correct Answer: 2

Rent increases in residential periodic tenancies are regulated by Part 3 of the Residential Tenancy Act. Part 3 provides that rent can be increased any time the premises are rented to a new tenant, but that a landlord may also increase the rent if at least 12 months have passed since an existing tenant’s last rent increase, or since the tenant started to rent the premises.

At least 3 months’ written notice of a rent increase is required. Landlords may always increase rents on an annual basis up to an amount equal to the CPI, without having to justify the increase.

Question 3

Question 4

Gretel and Hansel have decided to jointly purchase a strata lot as their new residence. They choose a brand new two-bedroom suite located in Dessert Village, a strata development that includes such amenities as a gym, tennis courts and saunas. To finance their purchase, Gretel and Hansel grant a mortgage to Grimm, who also owns registered mortgages for 75% of the other strata lots in Dessert Village. Recently, the residents of Dessert Village have been in disagreement with respect to the use of the tennis courts. The strata corporation has called a meeting to determine whether there should be an appointment system for the
use of the sports facilities. Gretel thinks that people should have to make a reservation to use the tennis courts; Hansel thinks it should be first come, first served. Which of the following is TRUE?

1. Both Gretel and Hansel have lost their right to vote by granting the mortgage to Grimm; only Grimm will have the right
   to vote.
2. There is only one vote per strata lot; therefore, either Gretel or Hansel may cast a single vote on this matter. Regardless of any provision in the mortgage agreement, Grimm has no right to vote on this issue because it does not affect the security for the mortgage.
3. Gretel, Hansel and Grimm have one vote between them. If they cannot all agree on how to vote, then the chairperson
   will discount their vote on this matter.
4. Grimm has no right to vote because he has not provided at least five days’ written notice to the strata corporation that he will be exercising his voting power. The result is that both Gretel and Hansel will have one vote each.

Answer 3

Correct Answer: 2

No matter how many registered owners there may be, there is only one vote permitted per residential strata lot. The Strata Property Act does allow an owner to confer their right to vote on a lender; however, the lender can only exercise that right to vote in respect of such matters as insurance, maintenance, finance or other matters that may affect the mortgage security.

In addition, the lender must provide at least three days written notice of their intention to vote. Therefore, Grimm does not have a right to vote on this matter, and Gretel and Hansel must agree on how to vote; otherwise, their vote will not be counted by the
chairperson.

Question 4

Question 5

Naomi is thinking of purchasing a condominium. She has obtained a copy of the rules and regulations and reviewed the bylaws registered at the land title office. She has more questions about the strata corporation and she asks Tina, the licensee, how she
can get this information. Tina suggests that Naomi request an Information Certificate in Form B from the strata corporation. Which of the following questions would NOT be answered by the Information Certificate?

1. What is the amount in the strata corporation’s contingency reserve fund?
2. Are there any legal proceedings pending against the strata corporation?
3. Are there any judgments registered against the strata lot Naomi is thinking of purchasing?
4. Are the expenses of the strata corporation for the current fiscal year expected to exceed the expenses budgeted?

Answer 4

Correct Answer: 3

The Information Certificate includes details of the maintenance fees payable, the financial profile of the strata corporation, any pending legal proceedings, the amount being held in the contingency reserve fund, and annual budget information. The Land Title Office would have information on any judgments registered against the strata lot being purchased.

Question 5

Question 8

Which of the following is an allowable rent increase under the Residential Tenancy Act? (Assume $50 is the maximum allowable increase according to the Consumer Price Index).

1. On July 1st, Linus lawfully raises Lucy’s rent from $1,000 to $1,050 per month. Five months later, Lucy moves out and
   Linus rents to Charlie for $1,050. Two months later, Linus gives notice to Charlie of another $50 per month increase. Charlie objects to the increase.
2. Linus raises Lucy’s rent by $50 per month; seven months later, he loses his job and gives Lucy three months’ written
   notice of a further $50 per month increase. Lucy objects to the increase.
3. On July 1, Linus raises Lucy’s rent from $1,000 to $1,050 per month. Two months later, Lucy is transferred to Campbell River and Linus re-rents to Charlie, but at a monthly rate of $1,200. Charlie knows Lucy only paid $1,050 and objects to the increase.
4. Lucy has been paying $1,000 per month for the last three months, prior to which she paid $950. Her landlord, Linus has sold the premises to Charlie, who immediately gives Lucy notice of a rent increase to $1,050 per month effective in two months. Lucy objects to the increase.

Answer 5

Correct Answer: 3

When a change in tenancy occurs, if the rent is not raised at that time, a landlord must wait until the next tenant has occupied the premises for 12 months before collecting a higher rent. Similarly, a landlord can only increase a tenant’s rent if at least 12 months have passed since that tenant’s last rent increase.

Also, rent cannot be increased merely because a new landlord buys the
premises. However, upon the creation of a new tenancy, the rent can be whatever the market will bear, regardless of the rent level or duration of the previous tenancy in the premises.

Question 6

DELETE

Answer 6

DELETE

Question 7

Question 11

Alex leased a shop from Geoffrey for a term of 48 months at an expressed rent of $6,000 per month, commencing January 1, 2000 and terminating on December 31, 2003. On January 1, 2004, Alex paid Geoffrey $6,000, which Geoffrey accepted. On the first day of the next 8 months, Alex paid the rent to Geoffrey who continued to accept it. On September 20, Geoffrey had an offer
from Peter to lease Alex’s shop for $6,800 per month. Geoffrey immediately faxed notice to terminate to Alex, effective October 20, 2004. Which of the following statements is/are TRUE?

A. Because this is a commercial periodic tenancy, either party can terminate.

B. On January 1, 2004 a new periodic lease was created by the actions of Geoffrey and Alex.

C. Geoffrey is entitled to terminate the lease because Alex did not increase his rental payments when the lease was renewed.

D. The notice period will be whatever is reasonable in the circumstances.

1. A, B, and D only
2. A, B, and C only
3. C and D only
4. All of the above

Answer 7

Correct Answer: 1

A periodic tenancy is created by implication where the tenant stays in possession of premises and continues to pay rent after a fixed term lease ends. The resulting periodic tenancy is valid and requires notice of termination regardless of whether the rent
increased. Either party may terminate a commercial periodic tenancy by giving reasonable notice.

Question 8

Question 12

Henry lives in an entirely residential strata complex and owns a large dog. Under a section of the bylaws, he has been given notice by the strata corporation to remove his dog. Henry has kept the dog in his strata lot since he purchased the lot three years ago. It has never caused any complaint, until now. Henry is the only owner who has an animal. Which of the following courses of action is available to Henry?

1. If he could obtain support of 75% of the owners, he could have the bylaw amended.
2. He could apply to a court for an order under section 164 of the Strata Property Act prohibiting the corporation from
   exercising its powers in this way because it is significantly unfair to him.
3. He could seek to have an arbitrator appointed in accordance with the Strata Property Act.
4. All of the above courses of action are available to Henry.

Answer 8

Correct Answer: 4

There are a number of remedies available to a disgruntled owner. Henry would be wise to try, as his first step, to have the bylaw changed because arbitration or court proceedings are expensive and may affect his relationship with other owners. However, if he is adamant about keeping his dog, there are remedies beyond negotiation and persuasion.

Question 9

Question 13
Bill owns a strata lot. His unit is 2,200 square feet. The other seven units have a combined area of 17,350 square feet. The common property has an area of 4,200 square feet. The annual common expenses are $45,000. What is Bill’s monthly share of the common expenses?

1. $421.99
2. $5,063.94
3. $475.50
4. $347.36

Answer 9

Correct Answer: 1

The share of common expenses owed by each strata lot owner is determined by the unit entitlement. This is the percentage of the entire strata lot area (not including the common area) that is owned by a particular owner.

In this case, 2,200 divided by
(2,200 + 17,350) = 0.112532. Using this figure, the annual share is determined as follows: 0.112532 × $45,000 = $5,063.94.

Therefore, the monthly share is: $5,063.94 divided by 12 = $421.99. Please note that numbers are not rounded until the final
calculation.

Question 10

Question 15

Strata Corporation VRX123 has adopted the standard bylaws set out in the Strata Property Act. Assume the annual total
contribution to the operating fund is $50,000.00. In the annual budget, an expenditure of $2,000 for window cleaning has been authorized. Which of the following statements is TRUE?

1. The strata council may pay the $2,000 window cleaning fee without any further consent.
2. Because the fee is higher than $500, the strata council will need to call a meeting of the strata corporation and obtain approval by special resolution.
3. Under the Standard Bylaws, a strata council may pay any amount up to $2,500 without permission from the corporation,
   whether or not it is contained in the budget.
4. If this is a common property expense, the strata council has complete authority to any amount.

Answer 10

Correct Answer: 1

Where an item is in the annual budget, it has already been approved by the strata corporation and, therefore, the council may pay the amounts as they come due. If an item is not in the budget, the council may still pay it if it does not exceed $2,000 or is 5% or less of the total annual contribution to the operating fund, whichever is less.

For amounts exceeding $2,000 that are not in the budget, the council may only pay them if a special resolution of the strata corporation is passed, a bylaw has been passed authorizing the expenditure, or if an emergency arises.

Question 11

Question 17

Which one of the following actions does NOT generally require a vote by the strata corporation?

1. An amendment to the bylaws
2. The decision to waive the requirement to obtain a depreciation report.
3. An amendment to the rules governing common property
4. A designation of limited common property by the owners

Answer 11

Correct Answer: 3

Only Option (3) is a matter for the strata council, which may handle it by a simple majority. All other acts require a special
resolution of the strata corporation.

Question 12

Question 18

The Owners, Strata Plan, 1234 (the “Strata Corporation”) is a strata corporation based out of Courtenay, British Columbia. The Strata Corporation is getting ready for its FIRST annual general meeting (“AGM”). One key topic up for discussion is the Strata
Corporation’s contribution to its contingency reserve fund (the “CRF”). Which of the following is TRUE regarding the Strata Corporation’s required contributions to its CRF at the time of the first AGM?

1. The Strata Corporation is not required to contribute to the CRF at the first AGM, given that the developer already paid a
   lump sum to the CRF.
2. The Strata Corporation must bring the CRF to at least 50% of the total amount budgeted for the annual operating fund.
3. The Strata Corporation is not required to contribute to the CRF at the first AGM, given that the Strata Property Act does
   not mandate the Strata Corporation to contribute to the CRF until the fifth AGM.
4. The Strata Corporation must contribute a minimum of 10% of the total amount budgeted for the annual operating fund to the CRF.

Answer 12

Correct Answer: 4

Option (4) is correct because it is a true statement. At each AGM, including the first AGM, the Strata Corporation must contribute a minimum of 10% of the total amount budgeted for the annual operating fund to the CRF.

For this reason, Options (1), (2), and
(3) are incorrect.

Question 13

Question 19

Lucas, the owner of a movie theatre, agrees to let Sadie sell popcorn, candy and soft drinks from a small room opening off of the lobby. The oral agreement between Lucas and Sadie provided that Sadie may only use the room while there is a movie in
progress and that for this right Sadie will pay a monthly fee of $500. Which of the following statement is TRUE?

1. The agreement between Lucas and Sadie is probably a licence because Sadie is not given exclusive possession of the room by Lucas.
2. The agreement between Lucas and Sadie, if a licence, is not enforceable against a bona fide purchaser of the theatre.
3. The agreement between Lucas and Sadie, should be in writing and signed by both parties to ensure that it is
   enforceable.
4. All of the above statements are true.

Answer 13

Correct Answer: 4

Options (1), (2) and (3) are correct statements