FAQs:
Borrowing Money
Q - 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?A - No. The Strata Property Act prohibits a strata corporation from mortgaging common property.
Q - 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?
A - 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.
This FAQ section is for informational purposes only, for the convenience of our visitors. While these questions and answers are about legal issues, they are not a substitute for consultation with a lawyer, and should not be relied on as a basis for any legal decision. As with anything of a legal nature, different circumstances can create different results.
