Dear Condo Smarts:

Our letter is more of a warning to other people who buy into a bare-land strata, but we also have a question.

We bought a house in a typical "subdivision" in the Okanagan in August 2007. It was perfect for us: all on one level, a quiet adult gated community that was safe and secure.

At the time of our purchase, the real estate agent told us it was the perfect investment for our needs. Moreover, the agent told us that even though it was a strata, it was a bare-land strata and that other than a common road we were totally independent and no one would interfere with the use of our property.

In essence, it seemed like simply a more economic way of owning a single-family home. Half a year later, we are facing a $25,000 special levy per home to rebuild our water delivery and sewage system, and new regulations on water treatment and delivery that threaten to impose an even greater cost and burden on owners.

Before anyone buys, they need to understand one thing: What's the difference between a bare-land strata and a building-type strata?

-- LC, Okanagan

In basic terms, there is no operational difference between a bare-land strata and a building-type strata, commonly referred to as townhouses or condos.

Unlike a building-type plan, in a bare- land strata, the strata corporation has no insurable interest in buildings not shown on the strata plan. The result generally is that the house is entirely part of the strata lot and the repair, maintenance and insurance of the bare land strata lot and home is normally the responsibility of the strata lot owner.

But don't be fooled by only reading the plan. A strata corporation may take responsibility for certain portions of a strata lot. To understand if the strata is going to be paying the bills for any parts of a strata lot, you would have to read the bylaws before you purchase.

For example, where all of the homes are identical on a bare land, the developer or strata owners may have created or adopted bylaws where the strata will be responsible for building exteriors to ensure they are routinely repaired and maintained.

The strata corporation may adopt bylaws that prohibit rentals, set age restrictions, limit or restrict pets, parking, use of common facilities and even go as far as determine the colour of your house or alterations to your strata lot.

Bare land owners are also subject to strata fees, special levies and settlements of law suits. Before you buy, read the bylaws and review the strata plan.

Find out what common facilities you are going to be paying for. Request a copy of the strata insurance policy. Even a bare-land strata must retain insurance for a minimum of $2 million in liability insurance and fully insure its common assets.

If the strata hosts its own water and sewage facilities, those are costs you will be paying for in the future.

Tony Gioventu is executive director of the Condominium Home Owners Association.

E-mail him at tony@choa.bc.ca

© The Vancouver Province 2008