MONTAGUE HEIGHTS PROPERTIES LIMITED
Frequently asked questions

What is it? How does it work?

Montague Heights Properties Limited is a corporation with 16 shares. The corporation owns the property on Galiano Island. The 16 shares of the corporation are being sold. Each share is associated with a specific surveyed area of the property. Upon purchase of a share, the owner of that share has complete control over the use and enjoyment of the specific area associated with that share. The structure is similar to a condominium in that each share holder is responsible for maintaining their specific area while the common areas are maintained by the corporation. The common areas on this property are primarily the roads. The corporation is made up of all the shareholders.

Why a share structure and not "fee simple"?

To create fee simple lots, each fee simple lot, by law, must have access by a highway standards road. This would have required each lot to be serviced by a 66 foot wide right of way asphalt topped road. Construction of this type of road would have quadrupled the cost of each lot. Simple driveway access to the building sites has considerably less negative impact on the environment. This is more in keeping with the rural character of Galiano and supports important environmental issues on the Island.

Is the corporate structure unusual?

These corporate structures are not unusual but most people are not familiar with them. On Galiano there are seven similar ownership models dating back to 1980 with over 90 shares in total and these shares have been bought and sold just like any other piece of real estate.

What size home may I build on my site?

There are 2 classes of shares. Class A shares allows the construction of any size single family home along with a 55 square meter uninhabited out building such as a garage, studio, storage shed, etc. Class B shares allow the construction of a 60 square meter cottage (as defined by the Galiano Land Use bylaw) along with a 25 square meter uninhabited out building. Additionally, both shares allow a 100 square foot pump house. The share owner is responsible for developing the property associated with that share. The share owner can hire a builder or be their own general contractor. Montague Heights Properties is not building homes for share owners.

Is financing available from Montague Heights Properties?

Yes. A down payment of at least 20 per cent is required. A 5 year fixed rate mortgage is available.

How does a share owner resell their share?

When an owner decides that they wish to sell, they can list their share with a real estate agent or sell the share themselves, just like any piece of real estate. What is sold is their share in the corporation. Along with their share comes the right to the specific area associated with that share. This includes any buildings or improvements that have been constructed on that property.

What control do I have over the property?

The share owner has complete control over the specific area associated with their share. Of course, as in all construction, all local building codes and bylaws have to be adhered to. The common areas of the property are controlled by the corporation. The common areas are primarily the roadways. There are only 16 shares so everyone has a large say in what the corporation decides. Each shareholder has a vote in electing the Directors, (from the pool of shareholders), of the corporation who look after the interests of the shareholders.

What about water supply and sewer systems?

Each building site will have a private well or a private water catchment system so each shareowner does not have an expensive joint water system to contribute to. Each building site will also be required to have a septic system.

What are my monthly costs after I buy a share?

Cottage Share:

1.2010 property tax expense: $24.18
2.2010 liability insurance expense: $1.81
3.2010 driveway expense: $0.00
4.2010 corporation operation expense: $ 2.46

House share:

1.2010 property tax expense: $62.17
2.2010 liability insurance expense: $4.66
3.2010 driveway expense: $10.42
4.2010 corporation operation expense: $6.33


After improving the specific area (building a house), the share owner will receive a separate property tax bill on that improvement that they will be responsible for. Unlike a condominium complex, we do not have major common property expenses which spiral out of control.