MORTGAGEBROKER mbabc.ca fall 2016 | 45
stratabylaws
Some concerns for lenders
You are thinking of lending money on the security of a strata unit.
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Should you review the strata corporation's bylaw?
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Can the bylaws limit your borrower's rights as to the use of the strata unit?
For example, can they prevent your borrower from renting the unit out?
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Could the bylaws apply to limit your rights as to the use of the strata unit?
For example, could they prevent you from renting the unit out if you took
ownership of the unit in a foreclosure proceeding?
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Could you or your borrower obtain an exemption from any rental-limiting
bylaws on the basis that not being able to rent out the unit creates a hardship?
Caution
A thorough review of a strata's
bylaws is crucial before a lender
considers accepting a unit as
security for a mortgage
BY RAY BASI, LL.B.
STAFF, EDUCATION AND POLICY REVIEW
A Case for
