Major repairs and restorations to strata buildings are expensive propositions. Sometimes strata corporations may successfully sue a builder/developer and collect some money in return.
However all that process may take a a long time and by the time the funds are finally released to the strata corporation, years may have gone by. As an owner who had contributed to the legal expenses in going after the builder you should get a refund. But you have sold in between and are long gone.
So, what can you do? Read the following:
Dear Condo Smarts: Our strata building had major renovations over the past three years, and the project is just coming to an end.
I am moving back east and selling my unit, but the strata council has told everyone we have a refund of about seven per cent coming because of interest earned on our money during construction, rebates, and coming under budget. My closing date is in mid-April, but the refunds won' t be settled until June 1. I advised council that I would be selling and notified it to send the refund to my new address. It has advised that it does not have the authority to refund me the money once I have sold the unit. So how do I get the refund?
Mark, Saanich
Dear Mark: When a refund comes due, that refund is payable to the owner of the strata lot. The owner is defined as the person who is on title at the time the refund is due.
As is similar to the payment of a special levy, if your sale is completed before the refund from a special levy becomes due, the obligation or benefit is transferred to the owner at the time of the due date. The resolution that first approved the special levy three years ago may have identified the owners or the process differently, so it would be important to review the original resolution, as well; however, this is more common with a lawsuit where the individual parties may be named as opposed to the strata corporation. Vendors who are wanting to secure their rights to a refund need to seek legal advice on the contractual agreement for sale and the enforceability of such an agreement.
March 28 2010
Vancouver Province
by: Tony Gioventu is executive director of the Condominium Home Owners' Association.
If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-290-7890 or email me at jeff@jeffreystark.net
