Terminating a 3 unit strata plan
Buchanan v. S.P. VR 1411
The Supreme Court of British Columbia
23 July 2008

The strata plan had three units in two buildings. The three units required extremely expensive repairs and were unsafe. Two owners lived overseas and rented their units.

The strata corporation did not hold AGMs, did not have a Strata Council (Board of Directors), did not collect monthly maintenance fees and did not have adequate insurance.

In 2006, one of the owners, Mr. Fraser, commenced a court action to have the two buildings repaired through an assessment on the three owners. The courts changed the by-laws and appointed an administrator to assume the powers of the Strata Corporation and the Strata Council.

The administrator's fees of $150 an hour would be paid by the three unit owners. In April 2007, the administrator called a meeting to pass motions to raise $45,000.

In June 2007, one of the owners filed a petition to have the corporation terminated.

An Administrator’s Report was filed February 20, 2008. He noted his fees and disbursements to January 31, 2008 totaled $46,454.09.

The court appointed administrator wanted the power to start repairing the buildings. Mr. Fraser, who lived in his unit, also wanted the buildings repaired.

The judge had to decide between these two options.

In BC, at that time, all owners had to agree to terminate a strata corporation and hire a liquidator. However, the courts could proceed with a termination if all three owners could not agree.

The judge noted that this strata property was dysfunctional both on a structural and organization level and that the owners have not been able to cooperate in the past. Furthermore, all three owners would have difficulties raising the needed funds to repair the buildings. It was also likely that the cost of the repairs would not result in high enough property values to justify the expense.

The judge decided to terminate the strata plan.

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