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obviously affect other owners in other situations," says Cam McKechnie, found- ing partner of McKechnie & Co. in Vancouver, who represented those seek- ing to force the sale. He acknowledges that the ruling will have limited value as a precedent since most similar cases would involve regular strata developments and would come under the Strata Property Act rather than the Partition of Property Act. Nevertheless, he notes that there are other common-law condo developments in B.C., all of which are aging and there- fore likely to run into similar problems at some point. Furthermore, similar issues are likely to The Cypress Gardens decision "will surface with regard to aging or defective condos that come under the aegis of the Strata Property Act, according to Dawson, who notes that the new legislation stipu- lates that a unanimous vote is required in order to wind up a strata corporation, whereas earlier legislation required only a 75-per-cent majority of strata corporation members. Strata law expert Patrick Williams, a partner with Clark Wilson LLP in Vancouver, says an even bigger roadblock to the sale of a strata property for redevel- opment is that you need to get the consent of mortgage holders. And this isn't likely to happen as long as they are concerned that they will lose their security as soon as the property is sold. Williams says concerns about the ongoing viability of aging condo devel- opments are exacerbated by the fact that B.C., unlike Ontario, has not until now required that strata developments com- plete a depreciation report to ensure that sufficient funds are set aside for future repairs. Recent legislation now requires that such reports be completed by the end of next year. Perhaps as a result of the Cypress tigated, he says. "All of a sudden, everyone is jumping on the bandwagon and saying, 'What are we going to do about this?'" There is less concern about this issue in Ontario, since legislation has long been in place requiring that condo boards conduct reserve fund studies and set funds aside for future repairs. Furthermore, the Condominium Act allows for the termination of a con- dominium board with the approval of owners of 80 per cent of the units, so that there is less chance of a Cypress Gardens-type deadlock occurring. "We're not yet at the point where con- dominiums are being terminated because the building isn't viable, Gardens case, people are beginning to recognize that there could be a huge prob- lem with strata developments as they reach the end of their expected lifespan, says Williams. A British Columbia Law Institute initiative that is looking into pos- sible reforms of the Strata Property Act has identified this as an issue to be inves- Jaglowitz, a litigation and dispute resolu- tion lawyer with Gardiner Miller Arnold LLP in Toronto and editor of The Ontario Condo Blog. However, he adds, "It's quite likely that such a scenario will present itself one day soon." " says Christopher Freelance journalist and business writ- er Kevin Marron can be reached at kevin@kevinmarron.com. e, where the original mortgagee has ass s for the supply of domestic utility or tele le of the mortgage and the right to recei do not materially affect the present use ments with publicly regulated utilities prov are complied with; you (b) any registered un with the land providing that such are telephone lines, cable television lines or Keeping you central to the real estate transaction.* titleplus.ca * The TitlePLUS® policy is underwritten by Lawyers' Professional Indemnity Company (LAWPRO® ® Registered trademark of Lawyers' Professional Indemnity Company. Untitled-1 1 ). 1-800-410-1013 www.CANAD I AN Lawyermag.com SEPTEMBE R 2012 27 12-08-10 11:53 AM djacent properties, and any easements ovided in this agreement and save and e

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