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[MarkoJ]

I am finding a lot of condo buyers aren't really familiar with what they are buying when it comes to parking. With parking, especially downtown, becoming an important and very expensive commodity it is important to know exactly what type of parking spot you are buying with your unit!

An owner may have the ability to use parking and storage areas by one of the following methods of allocation.


(a) Strata Lot or Part of the Strata Lot

• 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 which are intended for commercial use can be designated as a separate strata lot, in which case, they will have their own strata lot number.
• Parking and storage areas which are intended to be used in conjunction with a residential strata lot cannot 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 which is 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 his or her strata lot.

(b) Limited Common Property

• Parking and storage areas are often designated on the strata plan as limited common property ("LCP") for the exclusive use of a particular strata lot. An owner who is entitled to the exclusive use of an LCP parking or storage area does not own the area, but he or she will have the exclusive right to use the area.
• LCP areas are still common property, which is owned by all of the owners in the strata corporation in proportion to their respective unit entitlements.
• If parking and storage areas are designated on the strata plan as common property and are not limited to the use of a specific strata lot, a strata corporation can create LCP designations of these areas by passing a resolution either by a unanimous vote or a 3/4 vote (see Instruction Guide 18 for a more detailed discussion).
• The right to exclusive use of an LCP area attaches to the strata lot and not to the individual owner. Therefore, when an owner sells his or her strata lot, the right to exclusive use of the LCP area will automatically transfer to the new owner of the strata lot.

© Common Property

• Parking and storage areas may simply be designated on the strata plan as common property. Just like limited common property, common property is owned by all of the owners in a strata corporation in proportion to their respective unit entitlements. However, the use of areas designated as common property can be allocated to owners in three different ways.

I) A Grant of Exclusive Use

Under section 76 of the Act, the strata corporation may give an owner the exclusive privilege to use parking and storage areas which are designated as common property. This permission or privilege may not be given for a term which exceeds one year and may be subject to conditions.

• However, the strata corporation can renew the term of the privilege, alter the conditions, and cancel in the middle of a term by giving reasonable notice to the owner. Permission to exclusively use common property under section 76 is therefore temporary in nature and is not as secure as a right to use common property under an LCP designation or a lease.
• An important element of short term exclusive use arrangements is that the ability to use the common property only attaches to the owner and not the strata lot.
• Vendors, therefore, cannot contractually assign their permission to use parking stalls or storage lockers to new owners, as with a lease. The new owner must ask the strata corporation for permission to use the area exclusively.
• The strata corporation has full discretion to grant the exclusive use of the same or a different parking or storage area, or even to deny the new owner the right to use any parking or storage area.

(II) An Assignment of Rights Under a Lease or License

• When a developer creates a strata development, the developer will sometimes grant a lease or license over parking or storage areas to a related company or to itself (a head lease). The developer or related company will then assign its lease or license interest in individual parking or storage areas to purchasers when they buy their strata lot. Usually head leases or licenses of common property are created in developments with large underground parking and storage areas to enable the developer to control which purchasers get which parking and storage areas after the strata plan is filed.
• Some head leases or licenses are worded so that the sale of a strata lot to a purchaser automatically triggers an assignment of the individual parking or storage area to the new purchaser. However, if the head lease or license does not contain an automatic assignment, the vendor can contractually assign his or her lease or license in the contract of purchase and sale.

(III) Common Use of Parking Spaces

• Sometimes a strata plan will contain a parking area designated as common property that is not allocated to the use of any specific owners. Owners can often use common property parking areas on a first-come first-served basis.
• However, there may also be strata corporation bylaws or rules which govern how owners may use the parking area.

Further information at http://www.housing.g...pdf/Guide29.pdf