These examples are drawn from recent experience in Vancouver . There is nothing systematic here, just a brief primer on the kinds of problems that arise in stratas.

1. Personal Disputes

Two men who despise each other, living in the same Vancouver building for 25 years. The problem arose when they purchased their units at about the same time and were confused about their parking assignments. They both wanted one stall, and only one could have it. They have spent the last 25 years vilifying each other, keying cars, hammering on doors in the middle of the night, threatening phone calls, constant police complaints, and exposing everyone in the strata to a childish hatred that belongs only in cartoons. The men alternately serve on the strata council, and use the forum to try to advance complaints and fine each other. Everyone in the 50 unit strata is involved, suffering through late night tirades, police responses and many other insults, and the resale of units in the building takes place at a steep discount from similar buildings in the area. How would you feel with this kind of thing happening?

2. Unqualified Experts

Significant ongoing problems in a large strata complex in Vancouver caused the management company to have a mechanical engineering firm assess the complex. The recommendation was for a $400,000 upgrade to boilers, connections and other systems. Members of the council did not want to increase strata fees, and pressed to modify the plan to fit the money they could spend in their reserve fund, which was about $200,000. The experts all said that this was a very bad way to approach the issue, and yet individuals on the strata presented themselves as experts and convinced the others it was the best course. A smaller scope of work was prepared and undertaken. Over the next four years the strata paid out over $800,000 in related repairs, which would not have been required and ultimately completed the original scope of work for an additional cost of $400,000. It cost this strata over $1,000,000 to save $200,000 for four years. Needless to say, this is a very unhappy building.

3. Short Term Goals

A group of investors bought a number of units in a Vancouver strata. They saw a rising market and bought with the intention of reselling quickly. As a group they worked themselves on council and set about minimizing strata fees and reducing in every possible respect the amount of money spent on the building. They wanted to reduce strata fees to make the building more appealing to buyers. Boilers and pumps were not maintained, fire suppression systems went un-inspected, maintenance contracts for various systems were cancelled – the only things being taken cared for were what a potential buyer would see. They were completely aware that they were deferring essential maintenance and creating large future problems. This is a recent example, and the investor buyers they sold to are currently suing the investor sellers for various fiduciary breaches. The current owners are convulsed with the consequences, which include municipal by-law and insurance issues, large remediation costs, substantial legal fees and essentially unsaleable units.

4. Types of property

The strata act allows for the creation of multiple strata plans within a property and also for the creation of types of property within a plan, which can be distinguished by the common resources they use and for which they pay.

A mixed use building completed about 20 years ago on False Creek was set up by the developer with two separate strata plans, one for the commercial units on the ground floor and one for the residential units above. This kind of organization is common. The problem arises with the assignment of different maintenance costs to the strata plan. In this instance, the residential units are charged with roof maintenance and repair, while the commercial units are not. Perhaps this is because they are closer to the roof? The roof of the building now needs to be replaced, at a cost of about $350,000. If it is not replaced, the water that seeps through will without doubt end up on the floors of the commercial units, and yet they are fighting about who pays. The two stratas have become completely alienated over the issue, with no-one speaking to each other.

5. Stupidity

My personal favorite – A long-time apartment dweller purchased a unit on the 30th floor of a brand new strata tower on Richards Street last year. While moving in she struck a sprinkler head by the elevator with a chair. The sprinkler activated and poured water for over half an hour, flooding every floor below as well as the elevators pits and the elevators themselves. The cost of the elevator repair was over $400,0000, with the elevators completely out of service for a week, and in intermittent service for eight months. The insurance company declined payment on the basis that the cause of damage was the negligence of an owner. The woman had the great forethought to purchase a moving insurance policy which covered most of the cost of the damage created. How this strata organization will respond to this kind of beginning is anyone's guess.

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