Buying strata properties involve reading and checking a lot of documents. Quite often when checking on the parking stall number and storage locker number, buyers rely on what the sellers tell them. Many times the sellers will not even know what the designation of the parking and locker is. Are they considered a separate strata lot or part of a strata lot? Are they limited common property or common property?
Good news! Effective January 1, 2014 strata corporations are required to identify how parking and storage lockers are allocated to strata lots on a new Form B (Information Certificate). As a potential buyer, this is an important piece of document to review.
Why is it important to know? Because the specific rights of strata owners to use parking stalls and storage lockers varies depending on how the use of these areas has been allocated in the development.
The strata lot or part of a strata lot
This is any part of the registered strata plan identified with boundaries or as a separate strata lot and owned solely by the owner.
- Parking and storage areas may be designated on the strata plan as a separate strata lot or part of a strata lot.
- Parking and storage areas intended to be used in conjunction with a residential strata lot can’t be a separate strata lot, but can be designated as part of the strata lot and so share the same strata lot number as the residential unit.
- A parking or storage area designated as part of a strata lot will always be owned by the strata lot owner, and a strata lot owner will transfer ownership of these areas to a purchaser upon the sale of their strata lot.
Limited common property (LCP)
Parking and storage areas are designated on the strata plan as LCP is for the exclusive use of a particular strata lot. An owner with exclusive use doesn’t own the area, but has the exclusive right to use the area.
- LCP areas are common property owned by all of owners in the strata corporation in proportion to each strata lot’s unit entitlement.
- If parking and storage areas are designated on the strata plan as common property and aren’t limited to the use of a specific strata lot, a strata corporation can create LCP designations by passing a resolution either by a unanimous vote or a 3/4 vote.
- The right to exclusive use of an LCP area attaches to the strata lot, not to the specific owner. When an owner sells their strata lot, the right to exclusive use of the LCP area automatically transfers to the new owner of the strata lot.
Parking and storage areas may be designated on the strata plan as common property. Similar to LCP, common property is owned by all owners in a strata corporation in proportion to their respective unit entitlements.
The use of areas designated as common property can be allocated to owners in three different ways:
- A grant of exclusive use.
- An assignment of rights under a lease or licence
- Common use of parking spaces
For more information on strata parking and locker guides, go to : Guide 29
To see an example of the new Form B (Information Certificate), go HERE