Stratifying an RU6 (Duplex Zoned) Lot in the City of Kelowna

“All the flat land is gone” is a common complaint amongst the development community in Kelowna as undeveloped ALR lands occupy most of the “flats” and costly and earthwork intensive hillside parcels are what remains to be developed into new residential communities.

One remaining source of “flat land” is infill housing on larger lots primarily found in the lower mission, rutland bench, and north end. Many of these lots may have the potential to support a second dwelling.

Stratifying these properties is a popular (and relatively simple) route for developer as it results in a separately saleable parcel that can be separately owned and financed.

Prior to Purchase – Due Diligence on your Project’s Feasibility

Step 1 – Write a conditional contract with your Realtor to allow time to complete your due diligence

Step 2 – Investigate the current zoning in the City of Kelowna

Step 3 – Discuss with City Staff whether a rezoning application is needed and if that would be supported.

Step 4 – Discuss the general cost to build/ modify with a Licensed Builder.

Step 5 – Discuss your budget and financial plan with your banker

Step 6 – Investigate title with your real estate lawyer and discuss options (bare land strata v. tradition strata v. fee simple duplex v. strata conversion). Ensure you informed your lawyer if you are dealing with a previously occupied building as special provisions apply.

After Purchasing the Property: Permits and Plan Submissions

Step 1 – Submit for rezoning (if applicable) and obtain building permits to the City of Kelowna

Step 2 – Upon substantial completion, hire a BC Land Surveyor to prepare the following:

a)      Strata Plan (consider designating parking stalls/ storage as limited common property)

b)      Form U Surveyor’s declaration

c)      Schedule of Unit Entitlement

Step 3 – Return the surveyor’s documents to the real estate lawyer to prepare the Land Title Office submission including:

a)      Drafting strata bylaws

b)      Drafting Application to Deposit Plan (Form Z)

c)      Strata Corp Documents (Form X, Form W, Form Y, Form P)

d)      Arranging plan execution by effected charge holders (and municipal approving officer in some cases) as required by the Land Title Act

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