Canada: The B.C. Court Of Appeal Weighs In On Strata Wind-Ups

Last Updated: July 17 2018
Article by Peter J. Roberts, Bryan Gibbons and Edward L. Wilson

The B.C. Court of Appeal recently weighed in, for the first time, on the interpretation and application of the strata wind-up provisions in Part 16 of the Strata Property Act, (the "Act"). This is the first appellate decision to consider this aspect of the Act. It is an important decision because the court confirmed the validity of the practice and procedures for strata wind-ups that have developed in the last two years, since the amendments to the Act reduced the voting requirement to 80%.

Prior to July 2016, every owner in a strata had to agree to its wind-up. As the Court of Appeal noted, this effectively gave "every owner a veto" over the prospect of a provident sale of the strata lands. This requirement was so onerous that almost no strata corporations were ever wound up and there had been only been one court case (a three unit strata) that resulted in a wind-up.

For a variety of policy and practical reasons, in July 2016, the Legislature reduced this voting requirement from unanimity to an 80% vote (or "super majority") of all strata owners (not just those attending the special general meeting). Since then, several stratas in the lower mainland have been wound-up and sold to developers for prices in excess of their aggregate market value. The difficulty for the courts and the legal profession is that the wind-up provisions of the Act are somewhat archaic and do not clearly set out how, as a practical matter, the process of a wind-up is to take place. In making this amendment, the Legislature did not update the wind-up legislation other than changing the voting requirement. Winding-up a strata for a sale remains a complicated process involving many parties and competing interests.

However, the recent decision by the Court of Appeal provides comfort and guidance to strata owners that, provided they follow the right process, a wind-up can be successfully achieved.

The appellate decision involved a 33 unit strata in Vancouver's West End known as The Hampstead. Over 80% of the owners voted to wind-up and sell the land to a developer, in part to avoid anticipated repair costs. The strata council had engaged commercial realtors and, after a marketing process, signed a sale contract with a purchaser that was conditional on a wind-up vote being successful. After an 80% vote at a special general meeting, the B.C. Supreme Court granted an order confirming the wind-up, appointing a liquidator and approving the sale.

However, four dissatisfied owners appealed this decision. They advanced a number of arguments, including that the strata council did not have the authority to market and conditionally sell the strata lands and that the strict procedural requirements of the Act had not been followed, rendering the whole process null.

The Court of Appeal rejected these arguments and the strict interpretation of the Act advanced by the appellants. The court found that a strata council does have the authority to enter into a sale contract subject to a wind-up vote by owners. As the court noted, if a proposed sale contract is not before the court as part of a wind-up confirmation, this "would prevent the court from affording meaningful protection to the dissenting owners, creditors, and charge holders."

The court also rejected a strict or technical interpretation of the Act. The appellants had argued that additional information provided to owners as part of the wind-up resolution was confusing and not specifically authorized under the legislation. They disagreed and found that "the inclusion of additional information" did not "amount to non-compliance" under the legislation. The court concluded:

In short, while I agree . . . that the mandatory requirements of the winding-up process must be complied with, . . . they do not prevent the strata council or the liquidator from going beyond the minimum requirements, as for example, in obtaining court approval of a particular agreement, as long as those steps are not inconsistent with the provisions of the Act.

The Court of Appeal also commented on and helped define the role of the liquidator in the wind-up process. A liquidator does not necessarily need to be a "professional", nor are they required to have "special abilities", though they are "assuming important responsibilities". A liquidator may engage the services of other professionals, if necessary. The liquidator's role is primarily:

To act as a conduit for the transfer of the lands and as a court-appointed and approved person responsible for making sure that creditors and charge holders are paid out and that each owner receives the share of the net sale proceeds he or she is entitled to under the interest schedule.

This Court of Appeal decision provides comfort to strata owners that a wind-up and sale can be achieved. It also provides guidance to the profession on the essential procedural and legal steps to be taken to get there. Provided the process of a wind-up is done properly, the courts are not going to interfere on technical grounds with the wish of an 80% majority wanting to sell their strata.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Peter J. Roberts
Edward L. Wilson
Similar Articles
Relevancy Powered by MondaqAI
McCarthy Tétrault LLP
Lawson Lundell LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
McCarthy Tétrault LLP
Lawson Lundell LLP
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions