Strata Wind-Up Consulting

Strata Wind-Up Consulting

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

This process was outlined by a local law firm.

Step 1: Receive Expression of Interest

The first step is the receipt by 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, in need of costly repairs, and near the end of its life cycle, making it more sensible 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 alike the opportunity to reap significant profits, without saddling 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 they will be over-reaching and too expensive.

 

Step 2: Hold Town Hall Discussions

Right from the start, the strata council and any interested developers should keep strata owners fully apprised of all material information and all material developments, and these efforts should continue throughout the entire 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 very transparent and will inform all owners.

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

Or should we put this aside before hiring other professionals that typically will 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 act as a confirmation that the current offer is appropriate.  After all, this is the last chance to get an independent valuation of the property.

 

Step 7: Obtain Court Confirmation

This process is for dissenting owners, registered charge holders (such as mortgagees), and other creditors 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 Sale and Termination

 

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


Accurate Physical Inspections, combined with Informative Analysis, leads to Realistic Funding Solutions.
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