Parking and Storage Locker Allocation Methods

If you’re an owner within a strata development, how clear are you on the type of ownership rights that you actually have over your parking stall(s) and / or storage locker(s)?

As our city becomes more and more expensive, the demand for, and value of parking stalls and storage lockers continues to also increase, so understanding one’s ownership rights has become more important than ever.

There is somewhat of a presumption that within the Form B (Information Certificate) that Property Managers and Strata Corporations should be able to accurately convey which stalls and lockers are assigned to a strata lot and how they have been allocated; however, obtaining and understanding this information isn’t always as straight forward as one would hope.

Before we start to discuss the different ways that parking stalls and storage lockers are typically allocated, it should be noted that in some older strata developments separate strata lots were actually created for stalls and lockers.  These are rare, but if such instances are found it is obviously very important that a licensee identifies this and ensures that these separate lots and their legal descriptions are included in the identity of the property being transferred.

For stalls and lockers that are not their own separate strata lots but are to be used exclusively by the owner(s) of a particular residential strata lot and are not unallocated common property (e.g. guest or pay parking etc.), they will be defined as either Limited Common Property, or Common Property.

There are four methods that stalls and lockers may become designated as Limited Common Property:

• The developer makes this designation on the original strata plan at the time it is deposited at the Land Title Office.
• The strata plan is amended prior to the first AGM.
• The strata plan is amended via a unanimous vote.
• The strata plan is amended via a ¾ vote.

When the stall or locker is limited common property, this can be confirmed by reviewing the strata plan.  If the stall or locker is made to be limited common property via an amendment prior to the first AGM or via a unanimous vote the adjusted designation should be clearly identified on the amended strata plan that is filed at the Land Title Office.

If amended via a ¾ vote such a resolution must also be filed with a sketch plan setting out the area which is to be reclassified as limited common property which means that a search within the Land Title Office for the sketch plan must be conducted and reviewed.

When the strata lot is sold, these rights are automatically transferred to the new owner.

The second type of designation in which a stall or locker can be allocated is Common Property, which can also be designated as such with four different methods:

• By way of a Bylaw – Passed by a ¾ vote at an AGM or SGM; takes effect once filed properly in the Land Title Office.
• By way of a Rule – Passed by a majority vote of strata council members; must be ratified at following AGM.
• A Grant of Short-Term Exclusive Use – Granted by strata corporation; may not be for more than one year, but may be renewed, or cancelled with reasonable notice.
• A Long-Term Lease or License – Generally the developer sells a head lease over the common property areas that are to be allocated to a single-purpose company that it has created for a nominal amount, which then more or less “sells” the individual stalls or lockers to buyers via an assignment of the lease.

Unlike with limited common property, this type of designation will not be discoverable by simply reviewing the strata plan.  Here’s how to verify each of the four designation methods:

• Bylaw – Review the strata plan general index at the Land Title Office.
• Rule – Review strata council minutes where the rule was passed, the AGM or SGM where it was ratified, and any subsequent minutes and AGM/SGM’s to ensure that the rule has not been altered, replaced, or repealed.
• Grant of Short-Term Exclusive Use – Review minutes and/or enquire with strata corp., but take note that it is doubtful that the grant will be conveyed or transferred to the new owner when the property is sold.
• Long-Term Lease or License – Often problematic because of incomplete documentation of the sub-lease assignments as the strata lots are bought and sold over time. This issue is exacerbated if the head lease is not registered in the strata corporation’s common property registry.  Independent legal advice may be recommended and required in situations in which documentation is incomplete.

As you can see, ownership of parking stalls and storage lockers may not necessarily be as straight forward as most would think, and is something that cannot be simply assumed or overlooked.  If you’re unsure of the rights to a stall or locker that will be attached to a property that you’re considering please get in touch with me to help clarify things for you.