Following are some of the questions that strata councils and property managers frequently ask. Click on a question to see the answer.
Our strata corporation has a guest suite that is shown on the strata plan as common property. May the strata corporation borrow a loan by mortgaging the guest suite?
No. The Strata Property Act prohibits a strata corporation from mortgaging common property.
Our strata corporation has a caretaker's suite that is a strata lot. May the strata corporation borrow a loan by mortgaging the caretaker's suite?
Yes, if it is a strata lot, it is a common asset and the strata corporation may use it as collateral for a mortgage loan. However, before the strata corporation borrows a loan, the borrowing, the loan and the granting of any security, such as a mortgage, must first be approved by a 3/4 vote at an annual or special general meeting.