Air Space Parcel

An air space parcel is a three-dimensional parcel of land defined by horizontal and vertical boundaries, including elevation planes, created under the Land Title Act, RSBC 1996, c. 250. It allows ownership of a specific volume of space—for example, floors 5 through 10 of a building—separate from the land below or other air space parcels above or beside it. Air space parcels are commonly used in mixed-use developments where different uses (residential, commercial, institutional) occupy distinct volumes within the same structure. Verify how air space subdivision applies to your project with a BC lawyer or notary.

An air space parcel is created by subdividing a three-dimensional volume of land under the Land Title Act, RSBC 1996, c. 250, and is registered as a separate legal parcel with its own title. A strata lot is created under the Strata Property Act, SBC 1998, c. 43, and represents an individual ownership unit within a strata corporation that also includes shared common property and common assets. Air space parcels do not create a strata corporation by themselves, though a strata plan may later be deposited within an air space parcel. Verify the structure that best fits your development with a BC lawyer or notary.

Yes. Under the Strata Property Act, SBC 1998, c. 43, a strata plan may be deposited over land that is itself an air space parcel, creating individual strata lots within that three-dimensional volume. This is common in towers where the air space parcel comprises, for example, residential floors, and the strata plan then divides those floors into individual units with shared hallways and amenities as common property. Verify filing and registration requirements with a BC lawyer or notary before proceeding.

Air space subdivision requires approval from the local government (municipality or regional district) under the Local Government Act, RSBC 2015, c. 1, and the subdivision must comply with local zoning bylaws and any applicable development permit requirements. Once approved locally, the air space plan is deposited with the Land Title Office under the Land Title Act, RSBC 1996, c. 250. Verify current municipal subdivision policies and fees with your local planning department and a BC lawyer or notary.

Yes. The transfer of an air space parcel is a conveyance of land subject to Property Transfer Tax under the Property Transfer Tax Act, RSBC 1996, c. 378. The tax is calculated on the fair market value of the air space parcel at the time of registration. First-time home buyer and newly built home exemptions may apply if eligibility criteria are met (as of 2026-07-27 — verify current). Verify exemption thresholds and your eligibility with a BC lawyer, notary, or the BC Ministry of Finance before closing.

Foreign nationals (non-Canadian citizens or permanent residents) are generally prohibited from purchasing residential property in Canada under the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act, SC 2022, c. 10, which is currently extended through January 1, 2027 (as of 2026-07-27 — verify current). If the air space parcel is residential, the ban applies unless an exemption (e.g., work permit holder, refugee, certain developers) is available. Additionally, BC's Additional Property Transfer Tax of 20% (as of 2026-07-27 — verify current) applies to foreign entities and taxable trustees purchasing residential property under the Property Transfer Tax Act, RSBC 1996, c. 378. Verify your eligibility and all current restrictions with a BC lawyer before entering any purchase agreement.

Each air space parcel is assessed and taxed separately by BC Assessment and the relevant municipality as an individual legal parcel under the applicable property class (residential, commercial, etc.). The assessed value reflects the improvements and rights within that three-dimensional volume, and annual property tax is levied accordingly. Home owner grant eligibility under the BC Home Owner Grant Act may apply if the air space parcel is the owner's principal residence and meets all criteria (as of 2026-07-27 — verify current). Verify your assessment class and grant eligibility with BC Assessment and your municipality.

Common infrastructure (lobby, mechanical systems, parking) that serves multiple air space parcels is typically held in a separate air space parcel or as part of the underlying land parcel, with cross-easements or reciprocal access agreements registered against each air space parcel title under the Land Title Act, RSBC 1996, c. 250. Alternatively, a bare-land strata under the Strata Property Act, SBC 1998, c. 43, may be used to govern shared facilities. The legal structure and cost-sharing arrangements must be carefully drafted. Verify documentation and easement registration with a BC lawyer or notary.

The depreciation report requirement under sections 94–96 of the Strata Property Act, SBC 1998, c. 43, applies to strata corporations, not to air space parcels directly. However, if a strata plan is deposited within an air space parcel, the resulting strata corporation must obtain a depreciation report unless owners vote by ¾ resolution to waive it for a defined period (as of 2026-07-27 — verify current rules). If no strata corporation exists, owners or an owners' association may voluntarily commission reserve fund studies. Verify depreciation report obligations with a BC lawyer, notary, or strata management professional.

Yes. Because each air space parcel is a distinct legal parcel registered under the Land Title Act, RSBC 1996, c. 250, it can be mortgaged, sold, or otherwise encumbered independently of other air space parcels or the underlying land, subject to any restrictive covenants or reciprocal easements on title. Lenders will review the air space plan, easements, and any shared-cost agreements before advancing funds. Verify your air space parcel's title and encumbrances with a BC lawyer or notary and discuss mortgage terms with your lender.