St. John's, NL Real Estate Lawyers:
Stewart McKelvey
Suite 1100, Cabot Place
100 New Gower Street
P.O. Box 5038
St. John's, NL,
A1C 5V3
Phone: 709-722-4270
Fax: 709-722-4565
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Real Estate Law
Real property refers to land which includes not only the face of the earth but everything of a permanent nature over or under it. This also includes structures and minerals.
For the most part, the provinces have exclusive jurisdiction over the land within their borders not the Federal Government.
Forms of Real Estate Ownership
Fee Simple
Title (or ownership) to most real estate is held in what is called "fee simple" ownership. This includes most single family homes, town house and apartment condominiums, commercial properties and vacant lots or land.
Strata Title
Condominiums are a special type of "fee simple" ownership called "strata title". This means you have "title" or ownership of both your own town house or apartment unit and, along with the other strata owners, you also own a portion of the "common property" in and around the building.
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Strata Corporations and Bylaws - The Condominium Act (Revised Statutes of BC 1996, Chapter 64) and the bylaws of the strata corporation set out the rules and regulations which determine each owner's rights and obligations to other owners.
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The strata corporation is created when the original developer files a strata plan in the Land Title Office. The members of the strata corporation are the current owners of the strata lots. T
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The Condominium Act sets out the duties and powers of the corporation and the voting rights of the members. An important duty of the strata corporation is the duty to obtain appropriate insurance.
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The Strata Corporation automatically has the bylaws contained in the Act. The bylaws cannot usually be changed until after the first annual general meeting of the members of the strata corporation. The bylaws can be amended by a majority of not less than three-quarters of the votes of all persons entitled to vote.
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Information to Obtain Prior to Purchase. If you are purchasing a new condominium, obtain a copy of the prospectus. The prospectus provides details of the vendor, the financial history, the details of the common facilities and services, property management contracts, unit entitlement, parking, etc.
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If you are purchasing from an existing owner, obtain a copy of the bylaws, the rules and regulations and the annual budget and financial statements. Also ask for a copy of the strata plan setting out the boundaries of the unit and a copy of the minutes of recent strata council meetings. Find out if owners are permitted to rent their property.
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Ask about the amount of your share of the common expenses, the amount of reserves, the need for major repairs, and the property management agreement. Find out what services are covered by your maintenance fees and what special assessments have been or are likely to be made.
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Property Management. The strata corporation is usually run on a voluntary basis by the owners. Therefore, the corporation usually contracts with a professional property management company to handle its day to day business.
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Maintenance Fee. The strata corporation prepares an annual budget of anticipated expenses and assesses each owner a portion based on the unit entitlement. Payments are usually made monthly.
Cooperative
You may wish to buy an apartment in a "cooperative". The cooperative society owns the land and building in fee simple and you, as a cooperative member or shareholder, have the exclusive right to occupy your particular unit.
Mobile Homes or Trailers
Mobile home or trailers may be on a pad which you rent in a mobile home park. They can also be placed on a lot you own in "fee simple".
Types of Real Estate Ownership
Joint Tenancy:
The situation where two or more persons are equally owners of a property. Upon the death of one person the ownership reverts to the surviving joint tenant. Most married couples hold title in joint tenancy because the surviving spouse will become the sole owner in the event of the death of their partner.
Tenants in Common:
Similar to joints tenants. All tenants in common share equal property rights except that, upon the death of a tenant in common, that share does not go to the surviving tenants but is transferred to the estate of the deceased tenant. Most business partners will hold title as tenants in common. In the event of death, the interest of the deceased partner will go to their estate, and not to the other business partner.
