Understanding Strata Wind-Ups in British Columbia: A Guide for Owners/Sellers, and Buyers

As of May 2025, British Columbia's real estate landscape continues to evolve, with strata wind-ups becoming an increasingly relevant topic for property owners, prospective buyers, and real estate professionals. A strata wind-up refers to the voluntary termination of a strata corporation, often initiated to facilitate redevelopment or address significant maintenance challenges. Understanding the rules and processes surrounding strata wind-ups is crucial for all parties involved.

What You Need to Know About Strata Wind-Ups in BC

As property values rise and aging strata buildings become increasingly costly to maintain, more owners across British Columbia are exploring a lesser-known—but powerful—option: strata wind-ups. If you're a condo owner, potential buyer, or investor, understanding this process is critical to making informed real estate decisions.

In this post, I’ll break down what a strata wind-up involves, how it affects both owners and buyers, and what you should consider before proceeding with or purchasing into a building undergoing a wind-up.

What Is a Strata Wind-Up?

A strata wind-up (also known as a termination) is the legal process of dissolving a strata corporation and selling the property as a whole—typically to a developer interested in redeveloping the land.

This is often considered when:

• Major repairs are financially unfeasible

• The land’s redevelopment potential exceeds its current use

• Unit owners collectively see higher returns from a sale than maintaining the status quo

Since legislative changes in 2016, a wind-up no longer requires 100% owner approval—only 80%, plus BC Supreme Court confirmation, is now required.

Key Legal Requirements

Under the Strata Property Act, the process includes:

• 80% Approval: At least 80% of all registered owners (not just those who vote at the meeting) must approve the wind-up resolution.

• Court Confirmation: The BC Supreme Court must confirm the decision—ensuring fairness and protecting minority rights.

• Professional Oversight: Legal counsel, real estate professionals, and sometimes a court-appointed liquidator help manage the sale and financial distribution.

How Are Proceeds Distributed?

Many clients ask: Will I get more if I renovated my unit?

Unfortunately, no. Proceeds are generally distributed based on:

• Unit entitlement (proportional square footage)

• Or, in some older stratas, Interest Upon Destruction schedules

Upgrades (like new kitchens or flooring) do not increase your share of the sale proceeds.

Why Strata Wind-Ups Are on the Rise

More strata corporations are exploring wind-ups for good reason:

• Stratas’ nearing end-of-life require major capital repairs

• Insurers may limit coverage on deteriorating buildings

• Redevelopment offers owners a potentially much higher payout than listing their units individually

This is particularly common in older buildings located in transit-oriented areas or zones with increasing density allowances.

What Owners & Sellers Need to Know

If you're a strata lot owner:

• You can still sell your unit privately during a wind-up process

• Your unit will remain subject to strata bylaws and obligations until the transaction completes

• You'll still be responsible for maintenance and special levies during the process

• You may be able to negotiate occupancy after sale, such as rent-free or short-term tenancies post-closing

Also, once the sale is complete, remaining contingency reserve funds or special levies are distributed along with the sale proceeds.

What Buyers Should Consider

If you're considering purchasing in a building undergoing (or at risk of) a wind-up:

• Review minutes and AGM/EGM documents carefully

• Ask your agent or lawyer if a wind-up resolution has been passed or proposed

• Understand that tenancies may not be permitted post-sale

• Your financing and occupancy could be affected if the sale is in progress

It’s always advisable to work with a real estate professional experienced in pre-sale and resale markets, as well as redevelopment properties.

FAQs: Strata Wind-Up in BC

Q: What’s the typical timeline?
A: From initial exploration to sale closing, expect 12–18 months.

Q: Who determines the value of the land?
A: Professional appraisers and commercial brokers assess redevelopment value.

Q: Can council start the process without owner approval?
A: Council can initiate exploration, but must consult owners and secure funding via ¾ vote.

Q: What happens to rental units in the building?
A: In most cases, tenancies are ended at closing unless terms are negotiated with the buyer.

Q: What does the court consider before confirming a wind-up?
A: Owner interests, fairness, and potential confusion or hardship if the wind-up is approved or denied.

Additional Resources

For more detailed information on the strata wind-up process, including step-by-step guidance and legal considerations, visit the Government of British Columbia's official page on Termination (Winding Up) a Strata Corporation.