Strata Reserve Planning, one of B.C.'s larger Depreciation Report firms, and Bramwell and Associates, a long-time commercial appraisal firm,  work together to provide Strata Corporation's validation that their decision is based in fact.

A local law firm outlined this process.

Step 1: Receive an Expression of Interest

The first step is the receipt by the strata council of an expression of interest in a wind-up and sale. Generally speaking, an expression of interest will arise when the land value substantially exceeds the aggregate value of the existing units. This expression of interest will generally come from one or more strata owners, a developer, or both.

The expression of interest may be motivated by any number of factors. For example, the complex may be deteriorating, needing costly repairs, and near the end of its life cycle, making it more sense economically to sell the complex and have it redeveloped from the ground up. Indeed, in Vancouver's rising real estate market, this option offers strata owners and developers the opportunity to reap significant profits without burdening owners with the stress, hassle, and costs of undertaking major repairs.

This is when Strata Reserve Planning and Bramwell and Associates, an appraisal firm, can assist you.

Bramwell & Associates will prepare a summary letter with an appraisal of the units "as is" and with your proportional share of the estimated land value under a reasonable development scenario.

Strata Reserve Planning can provide a Depreciation Report to see if the Strata Corporations' future obligations are reasonable or if they will be overreaching and too expensive.

Step 2: Hold Town Hall Discussions

From the start, the strata council and any interested developers should keep strata owners fully apprised of all material information and developments, and these efforts should continue throughout the process. The B.C. Supreme Court recently emphasized the value of ensuring that the owners are "informed every step of the way," that the process is "transparent," and that all owners are provided with "any information they [seek], answers to any questions they have, and … any document they request".

The current and forward-looking program described above is transparent and will inform all owners.

These documents will answer the question. Is this a good idea?

Or should we consider this before hiring other professionals who typically cost up to 5% of the revenue?

Step 3: Retain Legal Counsel

Step 4: Retain a Real Estate Broker

Step 5: Negotiate a Final Offer

Step 6: Pass Resolutions Authorizing a Wind-Up and Sale

As the process can take 12 and 24 months, Bramwell & Associates can provide an updated valuation to confirm that the current offer is appropriate. After all, this is the last chance to get an independent property valuation.

Step 7: Obtain Court Confirmation

This process is for dissenting owners, registered charge holders (such as mortgagees), and other creditors who do not suffer "significant unfairness" because of the wind-up. An Appraisal supporting the offer or a Depreciation Report showing the financial impact in the future goes a long way as independent advice.

Step 8: Complete the Sale and Termination

Call us today at 604-608-6161 to let Bramwell and Associates provide ongoing and independent valuation expertise to maximize the returns the Owners can realize.