Strata Corporations and Councils are often faced with the surprise of receiving offers from developers for the whole building or select units, and this leads to questions. These questions often range around the issue about new OCP/NCP announcements, or special assessments that lead to other discussions about land value, the dissolution of strata and the sale of land. There are several factors to consider and speaking to a commercial real estate broker that specializes in the land assembly would be a good start. Now, remember that a lot of misinformation that exists and getting the right advice from the start of the process will help you make the correct decision.
You have options, but here are some questions that you need to ask:
- When considering the assembling of land – should we consider a strata dissolution if the special assessment costs per owner are very high?
- Is there any liability for strata councils to start or engage in a dissolution process?
- What are the steps a strata and/or a strata council should take to assist owners in the process?
- How many different types of processes are there? What are the alternatives?
- What is the valuation of the assembled land – how will other neighboring parcels negatively affect or increase our land value?
- Is the timing of the sale important?
- How can the brokerage help manage all the stakeholders involved in the assembly: city planning, city council, neighbours, developers, organized ownership group, school boards, etc. Who are the people that can affect the outcome of a land assembly?