Living in a strata or condo community means sharing spaces and responsibilities. While you have exclusive ownership of your unit, many other areas fall under collective ownership. But not all shared property is created equal.
Understanding the distinction between common property and limited common property is crucial for every strata owner and council member. It dictates who uses what, who pays for repairs, and how decisions are made.
By the end, you’ll have a clearer picture of your rights and obligations, empowering you to navigate strata living with confidence and help your community thrive.
What is Common Property?
Common property includes all the areas within a strata plan that are not part of an individual strata lot.
Essentially, it’s everything owned collectively by all the owners in the strata corporation. Every owner shares in the ownership of these areas and contributes to their maintenance and repair through their monthly strata fees.
Think of the fundamental structures and shared amenities that serve the entire building or complex. These are the spaces that everyone has the right to use and enjoy.
Examples of common property typically include:
- Structural components: The foundation, roof, exterior walls, windows, and doors.
- Shared facilities: Lobbies, hallways, elevators, and stairwells.
- Recreational amenities: Swimming pools, gyms, party rooms, and communal gardens.
- Infrastructure: Pipes, wiring, and ductwork that serve more than one strata lot.
- Outdoor areas: Driveways, visitor parking stalls, and landscaped grounds.
The strata corporation holds the responsibility for maintaining and repairing all common property. The funds for this work are drawn from the operating fund (for routine maintenance) and the contingency reserve fund (for major repairs and replacements). This collective responsibility ensures that the building remains safe, functional, and well-maintained for the benefit of all residents.
What is Limited Common Property?
Limited common property (LCP) is a specific type of common property. While it is still owned collectively by all owners in the strata corporation, its use is restricted to one or more specific strata lots.
This designation gives certain owners exclusive use of a part of the common property, often an area directly adjacent to their unit.
The most common examples of limited common property are:
- Balconies and patios
- Designated parking stalls
- Storage lockers
- Private yards or rooftop terraces attached to a specific unit
The “limited” designation is formally established on the strata plan or through a resolution passed by a 3/4 vote of the owners. Once designated, only the owner(s) of the corresponding strata lot(s) have the right to use that area.
However, exclusive use comes with specific responsibilities. While the strata corporation is generally responsible for major repairs to LCP areas (as they are still common property), the strata’s bylaws often make the owner responsible for the day-to-day cleaning and minor maintenance.
For example, an owner would be expected to keep their designated balcony clean, but the strata would be responsible for a major repair to the balcony’s structure. The exact division of these responsibilities is a common source of confusion and should be clearly outlined in the strata’s bylaws.
Should you remove limited common property designations?
Removing an LCP designation is possible but requires careful consideration and a formal process, typically a 3/4 vote resolution by the owners. A strata council might consider this if the LCP area is no longer being used exclusively or if managing it has become problematic.
For example, if several LCP parking stalls are consistently unused, the strata might vote to return them to the general pool of common property to be used as visitor parking. However, owners who benefit from an LCP designation will likely resist this change, as it removes their exclusive right to that space.
The Main Differences Between Common Property and Limited Common Property
The primary distinction lies in use and responsibility. While both are owned by the strata corporation, common property is for everyone, while LCP is for a select few. This directly affects who pays for what and who gets to make decisions.
Feature | Common Property | Limited Common Property (LCP) |
---|---|---|
Ownership | Owned collectively by all strata lot owners. | Owned collectively by all strata lot owners. |
Usage Rights | All owners and residents have the right to use and enjoy these areas. | Use is restricted to the owner(s) of one or more specific strata lots. |
Examples | Lobbies, elevators, roof, gym, swimming pool, hallways, visitor parking. | Sets expectations |
Evaluation Criteria | Factors that will determine selection | Balconies, patios, designated parking stalls, private yards, storage lockers. |
Responsibility for Maintenance & Repair | The strata corporation is responsible for all maintenance and repairs. | A shared responsibility. The strata is typically responsible for major structural repairs, while the owner is responsible for routine cleaning and minor maintenance as defined in the bylaws. |
Funding for Repairs | Paid from the strata’s operating fund or contingency reserve fund (CRF). | Major repairs are paid from the CRF. Minor maintenance costs are typically borne by the designated owner. |
Alterations | An owner cannot alter common property without written permission from the strata council. | An owner cannot alter LCP without written permission and may be required to sign an assumption of liability agreement. |
Provincial Variations
Strata legislation varies by province, leading to different rules for common and limited common property. It’s vital for council members and owners to be familiar with their specific provincial act.
Here’s a look at some key variations:
Province | Governing Act | Key Provisions and Differences |
---|---|---|
British Columbia | Strata Property Act | The Act clearly defines LCP. Bylaws can make owners responsible for maintaining and repairing LCP areas. Owners often need to sign an “Indemnity Agreement” for alterations to LCP, taking full responsibility for future costs. |
Alberta | Condominium Property Act | The term used is “exclusive use area.” The condo corporation remains responsible for repairs and maintenance unless the bylaws state otherwise. Alterations require board approval. |
Saskatchewan | The Condominium Property Act, 2001 | Allows for parts of the common property to be designated for exclusive use. The corporation is responsible for control, management, and administration, but bylaws can delegate maintenance duties to the owner. |
Manitoba | The Condominium Act | Uses the concept of “exclusive use portions” of the common elements. The declaration or bylaws specify the responsibilities for maintenance and repair of these areas. |
Ontario | Condominium Act, 1998 | Refers to “exclusive use of common elements.” The condominium corporation is responsible for repairing these areas after damage, but the declaration can specify that the owner is responsible for maintenance. Owners may have to pay for repairs if their actions caused the damage. |
Quebec | Civil Code of Quebec | Divides property into private portions and common portions. Some common portions can be designated for “restricted use.” The declaration of co-ownership defines the rules and responsibilities for these areas. |
The Importance of Understanding These Differences
A clear understanding of common vs. limited common property prevents disputes and ensures fair governance. For owners, it clarifies what they are paying for and what they are responsible for. For council members, it is fundamental to making sound financial and administrative decisions.
Misunderstandings can lead to:
- Financial Disputes: An owner might refuse to pay for a repair they believe is the strata’s responsibility, or a strata might improperly charge an owner for work on common property.
- Unapproved Alterations: An owner might renovate their LCP balcony without permission, potentially compromising the building’s structure or aesthetics and creating liability issues.
- Inequitable Cost Sharing: If bylaws are unclear, the entire strata corporation could end up paying for the maintenance of an area that only benefits one owner.
How They Play Into Council Decisions
Strata councils must carefully consider these issues during meetings or Annual General Meetings (AGMs) to ensure fair and lawful decisions are made. For example, when addressing disputes over maintenance responsibilities, the council should refer to the governing bylaws and Strata Property Act to clarify whether the area in question is common property, limited common property, or the owner’s individual responsibility. Similarly, tackling unapproved alterations requires a balanced approach—evaluating both the bylaws and the potential impact on the property and other owners, while ensuring outcomes are enforceable and compliant with governing rules.
Inequitable cost-sharing arrangements often need thorough investigation during council discussions to ensure transparency, fairness, and consensus among owners. By proactively addressing these matters in organized meetings, strata councils can foster better communication, resolve disputes efficiently, and maintain the shared interests of the community.
Strata councils constantly make decisions involving both property types. These decisions include:
- Budgeting: Councils must accurately budget for the maintenance of all common property and the strata’s share of LCP repairs. A failure to properly account for LCP in the depreciation report can lead to underfunded reserves.
- Approving Alterations: When an owner requests to alter LCP (e.g., install new flooring on a balcony), the council must ensure the alteration complies with the bylaws, and that the owner agrees to take responsibility for future maintenance and costs.
- Enforcing Bylaws: If an owner fails to maintain their LCP patio as required by the bylaws, the council must enforce the rules, which could involve notices, fines, or even performing the work and billing the owner.
Recommended Resource: What Roles & Responsibilities Exist on Strata Councils?
Special Situations & Emerging Issues
Special situations and emerging issues related to Limited Common Property (LCP) can arise due to various factors such as misunderstandings around ownership responsibilities, changes in property usage, or evolving legal requirements.
These situations often occur when owners or residents are unaware of the bylaws governing their LCP, make unauthorized alterations, or fail to fulfill their maintenance obligations. Additionally, unforeseen circumstances like extreme weather conditions or disputes between neighbours can complicate matters, requiring careful attention and resolution by the council.
As strata living evolves, new challenges related to property classification arise.
- Electric Vehicle (EV) Charging Stations: Is an EV charging stall installed in a designated LCP parking spot part of the LCP? Who is responsible for its maintenance and electricity costs? Strata corporations are now creating specific bylaws to address this.
- Short-Term Rentals: Can an owner grant their short-term rental guests access to all common property? What about LCP areas like a private patio? Bylaws must be clear on the rights of non-resident occupants.
- Aging Buildings: In older buildings, the line between an owner’s maintenance duty (e.g., caulking a window) and the strata’s major repair duty (e.g., full window replacement) on LCP can become blurred, often leading to disputes.
Getting Owners Involved
Having strata owners participate in the strata management process is a powerful tool for fostering great building communities.
Join Sean Jordan, founder of StrataPress, and Thomas Beattie of OctoAI for a comprehensive guide on transforming reluctant strata owners into engaged community leaders through understanding key motivations like property value protection, financial oversight, and community building.
Analyzing Documents with Eli Report
Navigating strata documents to find information on common and limited common property can be a daunting task. Key documents like the strata plan, bylaws, and financial statements are often long and complex. This is where tools like Eli Report become invaluable for strata councils, managers, and prospective buyers.
Eli Report uses artificial intelligence to scan thousands of pages of strata documents in minutes, flagging key information and potential risks. The system can identify:
- Bylaws related to the maintenance and alteration of LCP.
- Mentions of upcoming special levies for common property repairs.
- Discussions in strata minutes about disputes over property classifications.
By automating this review, Eli Report helps ensure that nothing is missed, providing a comprehensive overview that supports informed decision-making.
Final Thoughts
For any strata community to function smoothly, a shared understanding of roles and responsibilities is essential. The distinction between common property and limited common property is at the heart of this understanding. It defines the boundaries of personal and collective obligations.
By taking the time to learn these differences, reviewing your strata’s specific bylaws, and leveraging modern tools to stay informed, you can avoid common conflicts and contribute to a well-managed, harmonious community.
Whether you are an owner, a council member, or a strata manager, this knowledge is your best asset in navigating the complexities of strata living.