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A collective sale is the sale of a strata development as a whole under the Land Titles (Strata) Act

A worked RES examination question on collective sale eligibility, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.

Paper 2Lesson 5Collective sale eligibilityFree — no sign-up

The question

Grandview Mansions is a strata development of 60 subsidiary proprietors whose owners are weary of rising maintenance bills and have begun to talk about selling the whole estate. Next door stands a single freehold bungalow, owned outright by one elderly widow, who has heard the neighbours use the word "en-bloc" and wonders whether she too could put her house through the same process to fetch a better price. An agent is asked, for each property, whether a collective sale is even available. Which statement is correct?

  1. A. Both may, any property whose owners are all willing to sell being open to the collective-sale route on identical terms.
  2. B. Only Grandview Mansions may, the collective-sale route running to a strata development and not to a single-title house.
  3. C. Only the bungalow may, its sole owner needing no other person's consent to sell the entire property as a single lot.
  4. D. Neither may, the collective-sale route being confined to leasehold estates and closed to freehold ones such as these.

The answer, and why

Answer: B

The rule. A collective sale is the sale of a strata development as a whole under the Land Titles (Strata) Act. It needs two or more subsidiary proprietors: the whole point of the statutory machinery is to bind a dissenting minority. A single-title house owned by one party is sold in the ordinary way — there is no minority to bind and nothing to "collect".

Why B is correct. Grandview Mansions, a strata development, can pursue a collective sale; the single-title bungalow cannot, however willing its owner.

The other options.

  • A treats "willing owners" as the test; the property must be a strata development, not merely willingly sold.
  • C misreads the bungalow's single ownership as an advantage — with one owner there is no collective sale to make.
  • D invents a leasehold-only limit; tenure is irrelevant, and Grandview qualifies whatever its tenure.

Exam note. Strata development with two-plus owners = collective sale. A single-title house is just an ordinary sale.

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