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Are Long-term Leaseholders Protected?

There are a small number of non-strata leasehold properties in B.C. These are usually referred to as long-term leaseholds because the right of use to the property is granted for lengthy terms (e.g., 99 years). Most 99-year leaseholders are protected by provincial legislation, but there is an exception.

Non-strata long-term leaseholders are vulnerable to fee hikes and rule changes as they are not protected by the Strata Property Act or the Residential Tenancy Act. If your client considers purchasing a non-strata long-term leasehold, encourage them to seek legal advice to ensure they understand the risks. As a real estate licensee, it is your duty to act in the best interests of your clients and to advise them to seek independent professional advice on matters outside of your expertise.

The Strata Property Act enables strata leaseholders to set bylaws, budgets, and fees through a democratic process, whereas non-strata leaseholders must abide by whatever is set for them, or as negotiated in their purchase agreements. The Residential Tenancy Act protects renters, not leaseholders.

Please review and share our Leasehold Considerations.