2001 Legislative Session: 5th Session, 36th Parliament
The following electronic version is for informational
The printed version remains the official version.
Certified correct as passed Third Reading on the 11th day of
Ian D. Izard, Law Clerk
HONOURABLE MICHAEL FARNWORTH
MINISTER OF SOCIAL DEVELOPMENT
AND ECONOMIC SECURITY
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 Section 1 of the Homeowner Protection Act, S.B.C. 1998, c. 31, is amended by adding the following definitions:
"owner of a strata lot" is not restricted by the definition of "owner";
"residential strata lot" has the same meaning as in the Strata Property Act;
"strata corporation" means a strata corporation established under section 2 of the Strata Property Act for a strata plan that includes one or more residential strata lots;
"strata lot" has the same meaning as in the Strata Property Act;
"strata manager" means a person who performs strata management services in return for or in expectation of remuneration; .
2 Section 2 (1) is amended
(a) in paragraph (b) by striking out "and",
(b) in paragraph (c) by adding ", and", and
(c) by adding the following paragraph:
(d) to strengthen consumer protection for owners of residential strata lots.
3 Section 3 (2) (a) is amended by striking out "builders" and substituting "builders, strata managers".
4 Section 7 (1) is amended by striking out "builders" and substituting "builders, strata managers".
5 Section 8 (1) (a), (b) and (d) and (2) is amended by striking out "builders" and substituting "builders, strata managers".
6 Section 10 (1) is amended by striking out "builders" and substituting "builders, strata managers".
7 Section 13 (2) is amended
(a) in paragraph (b) by striking out "and",
(b) in paragraph (c) by adding ", and", and
(c) by adding the following paragraph:
(d) participants from the strata management industry.
8 The heading to Part 5 is amended by striking out "of Residential Builders".
9 Section 14 is amended
(a) by repealing subsection (1) and substituting the following:
(1) A person must not carry on the business of a residential builder unless licensed as a residential builder under this Act.
(1.1) A person must not provide strata management services to a strata corporation unless the person is licensed as a strata manager under this Act.
(1.2) Subsection (1.1) does not apply to an owner of a strata lot who, without remuneration or with nominal remuneration, performs strata management services only in respect of that strata corporation. ,
(b) in subsection (2) by adding "or strata manager" after "builder",
(c) in subsection (4) by striking out "licence" and substituting "residential builder licence", and
(d) by adding the following subsections:
(5.1) A strata manager who is authorized by a strata manager licence issued under this Part may use the designation "Licensed Strata Manager".
(5.2) Unless a person is a licensed strata manager referred to in subsection (5.1), the person must not
(a) use or display the designation "Licensed Strata Manager", or
(b) imply, suggest or hold out in any manner that the person is a strata manager who is licensed under this Part.
10 Section 15 is repealed and the following substituted:
15 The registrar may refuse to renew, or may suspend, cancel or impose restrictions on the licence of a person
(a) for any reason that would disqualify a person under section 14 if the person were an applicant,
(b) if the person has made a false statement on a material matter in the application or refuses to provide information on a material matter when requested to do so by the registrar, or
(c) if the person is in breach of a condition of, or restriction on, the licence or is convicted of an offence under this Act or the regulations or other prescribed enactment.
11 Section 16 (1) is repealed and the following substituted:
(1) If the registrar refuses to issue a licence to, or renew the licence of, a person, or suspends, cancels or imposes restrictions on the licence of a person, the registrar must
(a) serve notice of the decision, together with written reasons, on the person, and
(b) state in the notice that the person has a right to appeal the decision of the registrar to the Commercial Appeals Commission under the Commercial Appeals Commission Act.
12 The following section is added:
16.1 (1) If
(a) the licence of a strata manager has been suspended or cancelled or the registrar refuses to renew a strata manager's licence, or
(b) criminal proceedings or proceedings in respect of a contravention of this Act, the regulations or another prescribed enactment are about to be or have been instituted against a strata manager, which in the opinion of the registrar are connected with or arise out of the provision of strata management services,
the registrar, in writing or by electronic means, may order
(c) any person having on deposit or under control or for safe keeping any funds or securities of the strata manager referred to in paragraph (a) or (b) to hold the funds or securities, or
(d) the strata manager referred to in paragraph (a) or (b)
(i) to refrain from withdrawing funds or securities from any other person having any of them on deposit, under control or for safe keeping, or
(ii) to hold the funds or securities of clients or others in the strata manager's possession or control in trust for any interim receiver, custodian, trustee, receiver or liquidator, or until the registrar in writing or by electronic means revokes the order or consents to release of any particular fund or security from the order.
(2) In the case of a bank, loan or trust company, an order under subsection (1) applies only to the offices, branches or agencies named in the order.
(3) If a person in receipt of an order under subsection (1) doubts the application of the order to any funds or security, or if a claim is made to the funds or security by any person not named in the order, the person may apply to the Supreme Court, which may direct the disposition of the funds or security and may make an order for costs that seems just.
13 Section 17 is repealed and the following substituted:
17 (1) The registrar must compile
(a) a list of all residential builders licensed under this Part, and
(b) a list of all strata managers licensed under this Part.
(2) A list required by subsection (1) is a public record and must be made available for inspection by any person during the regular business hours of the office.
14 The following Part is added:
Part 5.1 -- Accountability of Strata Managers
18.1 When providing strata management services, a strata manager must
(a) act honestly and in good faith with a view to the best interests of the strata corporation, and
(b) exercise the care, diligence and skill of a competent and conscientious strata manager in comparable circumstances.
18.2 A strata manager who has a direct or indirect interest in a contract or transaction with the strata corporation or an owner of a strata lot must disclose fully and promptly in writing to the council of the strata corporation the nature and extent of the interest.
18.3 (1) If a strata manager who has an interest in a contract or transaction with the strata corporation fails to comply with section 18.2, the strata corporation or an owner of a strata lot may apply for an order under subsection (2) of this section to a court having jurisdiction unless, after full disclosure of the nature and extent of the strata managers interest in the contract or transaction, the contract or transaction is ratified by a resolution passed by a 3/4 vote at an annual or special general meeting of the strata corporation conducted according to the Strata Property Act.
(2) If, on application under subsection (1), the court finds that the contract or transaction was unreasonable or unfair to the strata corporation at the time it was entered into, the court may do one or more of the following:
(a) set aside the contract or transaction if no significant injustice will be caused to third parties;
(b) if the strata manager has not acted honestly and in good faith, require the strata manager to compensate the strata corporation or any other person for a loss arising from the contract or transaction, or from the setting aside of the contract or transaction;
(c) require the strata manager to pay to the strata corporation any profit the strata manager makes as a consequence of the contract or transaction.
18.4 A person must not provide strata management services unless the person maintains insurance, a bond or other security as required by the regulations.
18.5 Unless the owner of the strata lot holds a licence as a strata manager, this Part does not apply to an owner of a strata lot who, without remuneration or with nominal remuneration, performs strata management services only in respect of that strata corporation.
15 Section 32 (3) is amended
(a) by repealing paragraph (b) and substituting the following:
(a.1) prescribing the qualifications and conditions for licensing of strata managers and different categories of strata managers;
(b) prescribing licensing fees, including different fees for different categories of residential builders, residential subcontractors, residential renovators and strata managers; , and
(b) by adding the following paragraphs:
(c.1) prescribing conditions that may be imposed on the licence or the renewal of the licence of a strata manager and different categories of strata managers;
(f) defining "strata management services";
(g) prescribing the form and content of reports required from strata managers;
(h) respecting the maintenance of books, records and accounts by strata managers;
(i) respecting the maintaining and auditing of trust accounts by strata managers and the holding of separate trust accounts and the transfer of money into and out of trust accounts;
(j) requiring a strata manager to provide evidence of insurance, bonding or other security for the benefit of a strata corporation as a condition of obtaining or renewing a licence or for carrying out activities or services for which a licence is required, and prescribing the amount and type of insurance, bonding or security required;
(k) defining "remuneration" and "nominal remuneration" for the purposes of this Act;
(l) prescribing other conditions for obtaining a licence or for carrying out activities or services for which a licence is required;
(m) prescribing the form, content and mandatory terms for contracts for strata management services and terms that must not be included in a contract;
(n) prescribing other enactments in respect of which the commission of an offence is a reason under section 15 (c) for which the registrar may refuse to renew, or may suspend, cancel or impose restrictions on, the licence of a person;
(o) prescribing other enactments for the purposes of section 16.1 (1) (b);
(p) prescribing information to be provided to the public about strata managers.
16 Section 34 (1) (b) is repealed and the following substituted:
(b) contravenes section 9 (3), 14 (1), (1.1), (5) or (5.2), 19 (4), 21 or 22 (1) or (3), .
17 Section 35 is amended
(a) by repealing subsections (1) and (2) and substituting the following:
(1) In addition to a penalty imposed under section 34, a court that convicts a defendant of an offence under this Act may at the time the penalty is imposed order the defendant to pay to an owner, to an owner of a strata lot or to a strata corporation as compensation for pecuniary loss suffered by that person as a result of the commission of the offence an amount not greater than the monetary jurisdiction specified in the Small Claims Act.
(2) An application for an order under subsection (1) may be made by an owner, by an owner of a strata lot, by a strata corporation or by the Crown prosecutor on the request and on behalf of the owner, the owner of the strata lot or the strata corporation unless that person has commenced a civil action against the defendant in respect of the same matter. , and
(b) in subsection (3) by striking out "the owner" and substituting "a person entitled to compensation under the order".
18 Sections 41 and 42 are repealed.
19 Section 1 of the Real Estate Act, R.S.B.C. 1996, c. 397, is amended in the definition of "agent" by adding the following paragraph:
(e.1) collects, attempts to collect or offers to collect money payable under a licence to occupy real estate, .
20 Section 1 (a) of the Supplement to the Real Estate Act is repealed.
21 Section 36 of the Homeowner Protection Act applies for the purposes of transition in respect of the amendments enacted by this Act.
22 This Act comes into force by regulation of the Lieutenant Governor in Council.
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