Fibre Optic Utilities in Strata Corporations

A major telecommunication utility and their partners have begun circulating letters informing strata councils that their systems are being updated to provide for fibre optic technologies with improved service quality and reliability.

Along with the letter is a Right of Entry Agreement that strata councils, or their legal representative are being asked to sign and return. This Agreement is complicated and may give the utility certain rights to the common property for long terms.

Strata councils contemplating signing these documents should become familiar with Section 79 of the Strata Property Act:

Disposition of land held in strata corporation’s name

79. To sell, lease, mortgage, grant an easement over, grant a restrictive covenant affecting or otherwise dispose of land that is a common asset, the strata corporation must proceed as follows:

(a)   A resolution approving the disposition must be passed by a ¾ vote at an annual or special general meeting;

(b)   Any document needed to effect the disposition must be executed by the strata corporation and delivered to the land title office, accompanied by a Certificate of Strata Corporation in the prescribed form, stating the resolution referred to in paragraph (a) has been passed and that he document conforms to the resolution.

A council may not have authority to sign such a Right of Entry Agreement, without obtaining a ¾ vote of the Owners at a general meeting if Section 79 applies. Care should therefore be exercized before doing so. Strata councils considering such agreements should consult with their lawyer for review and negotiation on the contract, as well as to help them understand what is required to execute it.

C & C Property Group Ltd. is a strata management company with clients in the Metro Vancouver area.