Top 5 bylaws to watch out for when buying a condo

Buying a condo? The legal doctrine of caveat emptor (i.e. “let the buyer beware”) continues to apply to real estate transactions in British Columbia and can deny buyers a remedy for defects discovered in the property after purchase. Generally, the onus is on the buyer to determine the state and quality of the property being sold.

When purchasing into a strata building, it’s imperative to review and understand the current bylaws of the strata corporation. A failure to do so can lead to nasty, unwanted surprises for homeowners down the road.

Here are five types of bylaws that you should pay particular attention to:

1. Rental Restrictions or Rental Prohibition

If you’re purchasing the property as an investment, ensure that you are in fact able to rent out your strata lot. The strata corporation may have already enacted bylaws that could either prohibit the rental of residential strata lots altogether or limit the number or the percentage of strata lots that may be rented out. Strata corporations may also restrict the length of time for which strata lots may be rented.

2. Short-Term Accommodation Prohibition

Offering up all or part of your strata lot for short-term accommodation can be a significant mortgage helper. However, the rise of Airbnb has led some strata corporations to pass use-of-property bylaws that prohibit short-term accommodations.

These bylaws should not be confused with rental restrictions or prohibitions, as the Courts in British Columbia have found that short-term accommodations are legally different in nature to rentals.

3. Pet Restriction or Pet Prohibition

Pet bylaws vary greatly and can be as extreme as a complete pet prohibition. However, it is more common for strata corporations to restrict the number and types of pets.

The Schedule “A” bylaws restrict pets in a strata lot to one or more of the following: a reasonable number of fish or other small aquarium animals, a reasonable number of small caged mammals, up to two caged birds, and one dog or cat. Strata corporations that have passed a custom pet bylaw may have modified these restrictions and may require pets to be pre-approved and registered with the strata council.

4. Approval for Hardwood Flooring

It’s important to remember that when it comes to strata living, an owner is not the master of their own domain. In an attempt to reduce noise transmission between strata lots, many strata corporations have adopted bylaws that specifically regulate the installation of new flooring.

Even if your strata corporation’s bylaws do not contain specific provisions targeting the installation of flooring, the bylaws will always contain some general provisions requiring approval of the strata council for alterations or renovations.

5. Insurance Bylaws

A common issue condo owners face concerns the obligation to repair water damage. Depending on the wording of insurance bylaws, you may be liable for damage caused by water escaping from your strata lot irrespective of whether you have been negligent or careless. The easiest way to protect yourself from such claims is by making sure that you purchase your own individual homeowner insurance to fill in any gaps left by the strata corporation’s insurance policy.