Strata, rental or partnership: how to own a multiplex in Metro Vancouver.

Three paths, and the mix most owners ask about

Who owns the finished building decides most of what comes after: how it is financed, how it is taxed, who makes repair decisions and how the owner can exit. The three paths below apply to a multiplex anywhere in Metro Vancouver, from a duplex in Vancouver to a sixplex in Burnaby or Surrey.

Strata. A strata plan splits the building into strata lots, each with its own title, plus common property shared through a strata corporation. Units can be sold one at a time. The strata ownership chapter covers how the plan is filed and approved, and the small strata chapter covers the rules for a strata of 2 to 5 homes.

Rental. The building stays on one title, and every unit is rented under the Residential Tenancy Act. Nothing is sold. The rental chapter covers the landlord's duties, the GST that applies when you rent out new housing, and the rebates and financing rules that turn on unit count.

Partnership. A landowner and a developer share the project through co-ownership, a general partnership or a limited partnership. The partnership then builds for strata sale or for rental. The partnerships chapter covers what BC's Partnership Act says about each partner's liability, and the securities rules if outside investors come in.

A fourth option mixes them, for the owner who stays: build a multiplex, live in one unit, and rent or sell the rest. The keeping-one-unit chapter covers the title choices, the principal residence rules for part of a building and the two flipping rules.

What changes with the number of units

Several BC and federal rules switch on or off at a set number of units or strata lots. A duplex, a fourplex and a sixplex can sit on similar lots and still face different rules. The table sets out the lines that matter for ownership.

Two lines matter most for a landowner choosing a unit count. Going from 3 to 4 self-contained units can make a rental building eligible for the 100% GST rebate. Going from 4 to 5 strata lots brings in the disclosure statement and the depreciation report. Zoning sets the most homes a lot can hold. These rules help decide which number below that maximum suits the ownership path.

Who owns what at the end

On the strata path, the owner developer holds every strata lot when the plan is deposited and sells them one by one. Each buyer gets a title to their strata lot and a share of the common property that cannot be sold apart from it. The owner developer runs the strata until the first annual general meeting, which must be held within 6 weeks after 50% plus one of the lots are sold or 9 months after the first sale, whichever comes first.

On the rental path, the owner keeps one title for the land and building. Each tenant holds a tenancy with rights to the unit under the Residential Tenancy Act. If the owner later wants to sell units, the building needs a strata plan, and because it has been occupied, section 242 of the Strata Property Act puts that decision with city council.

On the partnership path, ownership depends on the documents. Co-owners hold shares of title. In a limited partnership, investors hold units in the partnership, and the agreement sets how the project's property is held. Limited partners are protected from the partnership's debts beyond their contribution as long as they stay out of management. The general partner carries full liability.

Decisions to make before the design is final

Ownership choices change the drawings. A strata needs a plan that shows each strata lot's area in square metres, and section 244 (2) bars residential parking and storage from being separate strata lots, so each stall has to be drawn into a lot or into common property. If unit entitlement will follow habitable area, a land surveyor certifies the schedule. A rental building aiming for the purpose-built rental rebate needs each of at least 4 units to have its own kitchen, bathroom and living area, and the owner should check the rebate's timing rules before excavation, because the CRA generally dates the start of construction from excavation.

The order of steps matters as well. Depositing the strata plan before anyone moves in needs only a land surveyor's endorsement. Waiting until the units are lived in sends the plan to council. An owner who is unsure whether they will ever sell units can deposit the plan first and rent the strata lots, since a strata cannot restrict rentals under section 141. The trade-off is a strata corporation with a budget, a reserve fund and insurance from the start.

A partnership should be documented before the land moves. The land's value, who signs guarantees, who covers overruns and how each side exits all belong in the first agreement. If the partnership will take money from people outside the original deal, a securities lawyer needs to confirm the exemption before any money changes hands.

Where this guide stops, and who to call

This guide sets out the rules that apply on each path, with the statute section or official page for each one. It is general information. Three kinds of advice have to come from professionals who know your facts: a lawyer for strata plans, purchase contracts, partnership agreements and securities, an accountant for GST, income tax and the principal residence rules, and a BC land surveyor for the strata plan itself.

The province publishes contacts for its own taxes. For the BC home flipping tax, the province lists ITBTaxQuestions@gov.bc.ca. For property transfer tax, the newly built home exemption page lists PTTENQ@gov.bc.ca. For rental tenancies, the Residential Tenancy Branch handles questions. We do not describe our own partnership terms on this page, and nothing here is an offer or a promise of any return.