If you finished a new multiplex and rented a unit before the strata plan was filed, the building is now “previously occupied” under the BC Strata Property Regulation (s.14.1). That one tenancy moves you from the short route for new buildings, a land surveyor’s certificate that nobody has lived there, to the conversion route in section 242 of the Strata Property Act: your city must approve the strata plan, it must refuse unless the building “substantially complies” with its bylaws and the building regulations, and its tenant rules now apply.
This post covers what changes, what the cities we checked require, and the tax and warranty rules to check before you sell. Our guide to stratifying a new building before anyone moves in covers the short route.
”Previously occupied” means any occupation
The Regulation defines it as “occupied at any time in its past for any purpose, including residential, commercial, institutional, recreational or industrial use”. The only exception is the owner developer using a unit “solely as a display lot for the sale of strata lots” (Regulation s.14.1). A tenant for one month, a family member living in a unit, or the builder moving in all count.
| Never occupied | Previously occupied | |
|---|---|---|
| Who signs off on the plan | A BC land surveyor certifies non-occupancy on Form S (s.241) | The city’s approving authority endorses Form T (s.242) |
| Approval test | None named in the Act | Must “substantially comply” with bylaws and building regulations; city weighs rental housing, tenant relocation, building life and maintenance costs (s.242(5), (6)) |
| Appeal | Not applicable | None: the decision is final (s.242(4)) |
| Date on the certificate or endorsement | No more than 180 days before the plan is filed | No more than 180 days before the plan is filed |
| City tenant rules | Not applicable | Apply where tenants live in the building |
Source: Strata Property Act ss.241 and 242; Regulation s.14.1 and s.14.5.
What cities say about new versus occupied buildings
- Vancouver. New, never-occupied buildings “do not require the approval of City Council or the Approving Officer”. Once occupied, they go through the strata conversion guidelines.
- Burnaby. Its guide says that “once occupied, the dwelling units can only be stratified through a Strata Conversion application”, which Council authorizes, and the building “would have to fully comply with the current Zoning Bylaw and current BC Building Code”. The same guide says “Strata conversion of existing purpose-built rental housing, except for duplex or semi-detached dwelling units, is not permitted.” Our Burnaby strata rules page has the detail.
- Kelowna. New building strata applications do not need the Approving Officer. Conversions do, and the City’s rental vacancy rules for conversions apply.
- Maple Ridge. A never-occupied building’s plan may be filed “without the approval of the City”. For a previously occupied building, “Council must first approve the Strata Plan”.
- Nanaimo. “Stratification must also occur at the time of construction, before the units are occupied, and all units must be stratified at the same time.”
- City of North Vancouver. For new buildings, stratification “must be noted at the time that a building permit application is made”.
City tenant rules
The Strata Property Act sets no tenant notice of its own. The tenant steps come from each city’s policy:
| City | Tenant rules for a conversion |
|---|---|
| Vancouver | Written consent from at least two thirds of the households; a notarized declaration that each occupant got notice, proposed sale prices, example strata fees and the building report; the City mails each household a Tenant Response Form |
| Victoria | Council decides when tenants live there; a Tenant Plan signed by all the tenants |
| Coquitlam | 2 units: written evidence the tenants favour it. 3 or more rental units: not favoured below 4.0% vacancy, and at least 60% of tenants in favour |
| Richmond | The owner’s written tenant relocation plan and the tenants’ written views on the City’s Tenant Impact Survey |
| Kelowna | Every tenant told in writing, with their rights under the Residential Tenancy Act; when Council decides, a letter at least 10 days before the meeting |
| Nanaimo | Signed consent from 80% of existing tenants |
| Saanich | When applicable, a covenant that prevents evicting tenants because of the conversion |
| City of North Vancouver | A tenant relocation statement |
Sources: each city’s conversion guideline, policy or application form, as listed on our city pages. Several cities also apply vacancy rules to rental buildings of 3 or more units; Saanich’s application form says its vacancy policy does not apply to small-scale multi-unit housing units. Our strata conversion guide lists the fees.
Rules outside the Strata Property Act
GST. The Canada Revenue Agency’s self-supply rule means a builder who rents out its own new units accounts for GST on their fair market value when the first unit is leased or occupied. We could not confirm how a later strata plan and sale affect that, so talk to your accountant before you file the plan.
BC Housing’s rental exemption. A building that used the rental exemption from home warranty insurance carries a covenant “restricting the sale or other disposition of any dwelling unit for 10 years from the date of first occupancy” (Homeowner Protection Act Regulation s.2). BC Housing’s page describes no early release. If you used the exemption, that covenant still governs a sale after the strata plan is filed.
Home warranty. Under the Homeowner Protection Act (s.22), a new home may not be sold within 10 years of its first occupancy permit unless it has home warranty insurance or is exempt.
Vancouver’s R1-1 zone. Seven or eight units are allowed only if the building is “secured as 100% residential rental tenure”; a strata multiplex there is limited to 6 units.
Our guide to renting now and stratifying later covers the planning choices before a building is finished.
If you have already rented a unit
- Write down the first day anyone lived in the building. That date decides which route you are on.
- Ask the city whether your plan is now a conversion, which fee applies and who decides.
- Get a building report from an architect or engineer. The conversion rules we read in Vancouver, Richmond, Saanich, Nanaimo and Maple Ridge ask for one on the building’s condition or code compliance.
- Follow the city’s tenant steps, including any consent or survey, before you apply.
- Check the GST position, the warranty and any rental covenant on title before you agree to sell anything.
- File the plan with the city’s Form T endorsement within 180 days of its date.
If you have not rented yet and plan to sell units, our guide to stratifying a new building before anyone moves in shows the shorter route.
We are building the StraPlex app for owners of 2 to 6 unit stratas, with the steps from a finished building to a filed strata plan in order, and the city’s rules for your address. The waitlist is below.
David Babakaiff, Co-Founder, VanPlex | PlexRank™ | Profit with Multiplex
