The Basics About Quarter-Shares
Legends, 2036 London Lane is the true ski-in/ski-out quarter-share development in Whistler. Neighboring Evolution at 2020 London Lane, is marketed as ski-in/ski-out as it is less than a one-minute walk from the front door of Legends. Seriously, it is less than a one-minute walk. Both Legends and Evolution are part of the trilogy of properties managed by Lodging Ovations at Creekside.
Legends and Evolution are different types of buildings, so the chances are, you will prefer one over the other. The main deciding factor may be that Evolution is a pet-friendly property for owners and guests.
Table of contents
Overview
When it comes to ski-in/ski-out quarter-share real estate in Whistler there are two options to consider, 1) Legends, 2036 London Lane, and 2) Evolution, 2020 London Lane. Both are in Creekside at the base of Whistler Mountain. Legends is a true ski-in ski-out property, you are steps from the Creekside Gondola. Evolution is marketed as a ski-in ski-out property which is less than a minute’s walk to the front door of Legends. Legends and Evolution are different in size, configuration, and decor, so typically the Buyer will be attracted to one over the other. Evolution is pet-friendly, which can be the deciding factor for Buyers.
Rental Management Company
Lodging Ovations is the rental management and strata management company that manages Legends, Evolution, and First Tracks Lodge. There is a rental management agreement in place for each of the three properties which mandates that the owners must agree to Lodging Ovations managing all the rentals. In other words, you as an owner, cannot advertise your own property, nor can you act as a rental manager. This way, the integrity of the development remains intact. Lodging Ovations operates its properties with military precision. They are one of the few management companies that has an Owner Guide:
Link to Lodging Ovations Owner Guide
Blocking Personal Bookings
The rental manager has to know what units are available for rental so they can market their property accordingly. Therefore, each owner is asked to reserve their personal bookings in the Lodging Ovations portal. This is another reason, Lodging Ovations stands out above the others, they use technology for everyone’s convenience. The following is from the FAQ, however these dates may change, so due diligence is required.
- Notice of Use Period for winter personal bookings: portal is open from June 15 and closes on August 1.
- Notice of Use Period For summer personal bookings: portal is open from December 15 and closes on February 1.
- Any attempt to make a personal booking outside this period means talking with Owner Relations. Lodging Ovations is running a business, so after the Notice of Use Period, all bets are off.
Rental Pool
With both Legends and Evolution, if you choose to have your property in the rental pool then you will be given a share of the revenue regardless if your property was rented out or not. However, if you are using your property personally, you will not get a share of the revenue earned for the property. The share you will receive of the revenue is based on the pre-determined Insurance Under Destruction (IUD) assigned %. This percentage was calculated when the development was a twinkle in the developer’s eye.
Revenue
With a quarter share that is in the rental pool, the listing agent should provide a copy of the revenue statements when they list the property.
Lodging Ovations operates a rental pool agreement for both Legends and Evolution. The rental income for the building is pooled and divided up based on a pre-determined quotient, termed Insurance Under Destruction. This quotient was determined long before the building was constructed, and will never change.
Rotational Calendar
Quarter-Share properties operate on a rotational calendar. When you buy A, B, C, or D, you cross-reference the letter with the calendar. This will show you the week throughout the present and future years that you will have use of your property. Every fourth year, you will have two weeks, the Christmas and the New Year week combination.
Link to Legends’ Rotational Calendar 2025-2030
Link to Evolution’s Rotational Calendar 2025-2030
GST
Each of the 4 “sub-lease” owners can decide whether to pay the GST on their quarter share or defer it based on the intent of their use.
This is a huge topic, and it is covered on this website. For non-residents, the page on Taxes and fees will give you all sorts of information on what to expect when owning a rental property in Whistler. Non-residents: Taxes and Fees
For Canadians, the Taxes and Fees page will provide you will all the information on what to expect when owning a rental property.
CRA Allowance for Personal Use
With phase 1 property, there is a 10% use allowance for those whose intent is to rent out the property as much as possible. With each quarter share the “sub-lease” owner, there is a similar 10%/4 which is 2.5% or 9 days of personal use before CRA starts knocking on the door. This information was provided by a Whistler accountant who specializes in rental income properties.
Home Rescission Buyer Period (HRBP)
The HRBP is a 3 business day, cooling off period for the Buyer to determine whether they acted in haste when writing the offer. However, since quarter-shares are not deemed residential because are deemed commercial, and the owner can never live in the property. Granted, the Underused Housing Tax (UHT) division of the CRA has a different opinion, which it seems is not going to change.
Best read my blog post, What is the Home Buyer Rescission Period?
Strata Documents
Lodging Ovations does a fantastic job of posting all the relevant documents related to the strata corporation on a web portal. Therefore, there is no point of reposting them on this page.
Strata Fees
Lodging Ovations collects this money from each of the 4 owners and submits it accordingly. In full-ownership property, these expenses would be in addition to the strata fees. Strata fees are collected quarterly. The strata fees for each owner include:
- property taxes
- strata fees
- Tourism Whistler dues
Directory of the Buildings
Storage Skis, Boards and Bikes
Both Legends and Evolution have owner lockers. There are four small, stacked storage cubes in the bedroom closet, one cube per owner. In addition, every owner has a dedicated year-round ski locker located in the ski locker room. The owner’s ski locker room is at the back door of Legends so it is steps from the Creekside Gondola. In Evolution the owner’s ski lockers are beside the front door. The owner is allowed to access the ski storage locker if they are not staying on the property.
Bike Storage for owners is provided when the owner is staying at the property. Note, due to the value of bikes, Evolution and Legends, like most strata managers, are adapting and finding ways to offer more security for bikes. Best to check on the latest update.
Parking
There will be a parking stall(s) allocated to your unit. This will be an unassigned parking stall. If you are bringing friends and they have a vehicle, then they should be able to have paid parking. However, this will be at the discretion of the management.
Amenities
Both Legends and Evolution each have the same but different amenities:
- outdoor, year-round swimming pool
- 2 hot tubs
- outdoor BBQ and picnic area
- gym
- games and media rooms
Front Desk
All front desk inquiries for Legends and Evolution are managed from the lobby at Legends. Evolution’s lobby was never designed for a front desk. The Legends desk also handles First Tracks Lodge, the third property managed by Lodging Ovations.
Non-Resident: Underused Housing Tax (UHT)
Video Description: I own a quarter-share, do I pay UHT? Yes! The quarter-share property has one freehold title which is divided into four shares termed sub-leases. The non-resident owner of each quarter share must use the property 28 days to avoid paying a penalty.
Now this is where it gets interesting. Should one of the owners buy out one or more of the other three sub-lease owners in the same title or deed, the UHT requirement for that person stays at 28 days. For example, 101 A, B,C and D, the owner of Unit 101 A and B is now the same non-resident. But, only 28 days of usage is required not 2 x 28.
As an experienced buyer’s agent it’s my responsibility to make sure you have the basic UHT information and refer you to an accountant when the time is right. I’m Marion Anderson, I help people buy real estate in Whistler.
Owning More Than One Quarter-Share
What happens if you own a quarter-share, does that mean you have to use each 1/4 share for 28 days to avoid the UHT penalty? No, it does not mean that. The usage requirement for one 1/4 share is 28 days. The same rules apply to quarter shares as to full ownership. For example, a non-resident owns 104A in Legends then the UHT requirement is 28 days. If the same non-resident owns 104A Legends and 104B Legends then the UHT requirement is 28 days total. In other words, it is not 56 days (2 x 28 days).
Should the non-resident owner of 104A be unable to use the property for 28 days then the UHT penalty payment would be 25% of 1% of the value of the property.
If the non-resident owner owns 104A and 104B the UHT penalty would be 50% of the 1% of the value of the property.
For non-residents, check out Non-Residents: Underused Housing Tax
Financing
Financing is not impossible but you will need to have assets that can be used as collateral. For fractional ownership, it is recommended to retain a local mortgage broker who understands how to present your application.
Buying
It is important to recognize that when you buy a quarter-share you may be responsible for taking over the Seller’s bookings already in place. Depending on the time of year, it may be possible to move those bookings to another unit. However, this will be at the discretion of Lodging Ovations. If the bookings that you are taking over, are happening at Christmas/New Year or a statutory USA or Canadian Holiday, I would not presume these can be moved. However, we can always ask.
FAQ
Again, Lodging Ovations have outdone themselves and provided an FAQ sheet for both Legends and Evolution. Please note, it reads as though the FAQ was part of the prospectus when each development was being pre-sold. However, it does answer some good questions.
Link to Evolution’s FAQ document
Yes, owners and guests can have 2 dogs or cats per reservation.
No. Neither owners nor guest are allowed pets. Neighboring Evolution allows pets.
Yes, but only if the other owner will oblige. The rental manager is usually willing to assist.
No guarantee. This will be at the rental manager’s discretion.
No. The owner-management agreement states all reservations must be done through the designated rental management company
Yes. You can authorize third-party reservations by alerting the rental manager in advance.
Next Steps
Quarter-share ownership is popular in Whistler. It suits a lot of families who recognize that the commitment to use their investment once a month, is sufficient. Even at that, some people will use the condo part of the week and rent it out for the remaining days.
If you think I would be a good fit to work with you and your family, and you are not already working with a Whistler realtor, please, contact me.
Marion Anderson Personal Real Estate Corporation
marion@WhistlerSkiinSkiout.com (604) 938-3885