Chapter 7 Random Flashcards
In British Columbia, before approving a conversion of a rental building to a condominium, the approving authority must consider a number of factors. Which one of the following is NOT a mandatory consideration?
(1) the priority of rental accommodation over private ownership in the area
(2) the proposal to relocate existing tenants
(3) the life expectancy of the building
(4) the potential increase in real property tax revenue
4
With respect to bylaws in a strata development, which of the following statements is TRUE?
(1) Bylaws are passed by special resolution of the strata council.
(2) Bylaws may limit an owner’s right to lease a strata lot if it is a commercial condominium complex.
(3) Bylaws provide for the control and management of the strata lots and common property.
(4) All of the above statements are true.
3
Which of the following statements comparing cooperatives and condominiums is TRUE?
(1) Both condominiums and cooperatives are created by filing a plan in the land title office.
(2) Buyers of both condominiums and cooperatives acquire a fee simple interest in the real property on which the purchased unit is situated.
(3) Buyers of condominiums will generally find it easier to finance their purchase than will buyers of cooperatives.
(4) Both owners of condominiums and owners of cooperatives are equally free to sell their units to whomever they wish
3
When converting an existing building to a strata development:
(1) the existing tenants must be relocated by the developer.
(2) the age and condition of the building is irrelevant.
(3) the developer must pay the existing tenants’ moving expenses.
(4) none of the above statements is true.
4
Ron, a developer, wanted to convert a 15 unit three-story apartment he owned into a condominium, in order to realize a greater profit on the sale of condo units than he would if he sold the building as a single entity. Which of the following factors would the municipal council NOT be required to consider in deciding whether to give approval to the conversion application?
(1) The fact that the construction of a large shopping mall four blocks from the building had caused land values to rise to an extent where it was no longer economical to maintain the property as a small apartment.
(2) The fact that there was a relatively high rental vacancy rate in the area, as compared with the city as a whole.
(3) The fact that Ron had promised, as part of his conversion proposal, to make a voluntary payment of $500 to each of the tenants, as a contribution to their moving costs.
(4) The fact that the building had a limited life ctancy due to its aging construction and the need for replumbing throughout the entire building.
1
Which of the following statements comparing condominiums and cooperatives is FALSE?
(1) Buyers of both condominiums and cooperatives acquire ownership of a fee simple interest in land.
(2) The requirement for a disclosure statement may apply to both condominiums and cooperatives.
(3) Condominiums are generally easier to sell than cooperatives.
(4) Where an existing building is being converted to either a condominium or a non-profit cooperative, the existing tenants are covered by the protections afforded by the B.C. Residential Tenancy Act.
1
Richard owns a 2,400 square foot unit in a strata complex. There are 19 other units, the square footage of which totals 37,600 square feet. The common property has an area of 12,600 square feet. The total common expenses for the year amount to $48,000. What is Richard’s monthly share of the common expenses?
(1) $596.83
(2) $255.32
(3) $761.90
(4) $240.00
4
2400 sq ft
divided by 40,000 (TOTAL SQUARE FEET!!!)
=.06
multiplied by 48,000
then divided by 12 (monthly payments)
=$240.00
