NORTH SHORE ESTATES (PHASE 1)
FREQUENTLY ASKED QUESTIONS
1. WHO IS TS’UUBAA-ASATX?
Ts’uubaa-asatx (su-baa-sat) (the “Nation”), “People of the Lake”, is a First Nation. Formerly known as the
“Lake Cowichan First Nation”, the Ts’uubaa-asatx people have resided along Cowichan Lake since time
immemorial. Similar to a local government, the Nation is governed by a council. The Nation’s current
council is comprised of a Chief and three Councillors, who hold their positions based on a hereditary
Title to the Nation’s reserve land is held in the name of the federal crown. Notwithstanding that the Nation
does not hold title to their reserve land, the Nation has the authority to exercise the rights of an owner
over their reserve land, including the granting of leases. The Nation is required to follow the provisions of
their Land Code adopted pursuant to federal legislation in carrying out transactions involving their reserve
land. Other than ensuring that the Nation’s Land Code meets legal requirements, the federal government
has no involvement in the leasing of the Nation’s reserve land or approving construction on the Nation’s
The Nation is also a government. They have certain law making powers over their reserve land, including
the authority to regulate construction and land use. All construction for Phase 1 of North Shore Estates
must follow the requirements of the Nation’s laws, the Building Scheme that is registered on title for this
development, as well as the approval process outlined in the model Lease for Phase 1.
The Nation’s laws are posted on the Nation’s website https://www.lakecowichanfn.ca/.
The Building Scheme applicable to Phase 1 and a copy of the model Lease are posted on the website of
North Shore Estates:
2. THE NATION’S RESERVE
The Nation currently has one reserve, known as “Lake Cowichan” (the “Reserve”). The Reserve
comprises approximately 42 hectares of land. North Shore Estates will be situated on the Reserve.
3. NORTH SHORE ESTATES
The Nation has earmarked a portion of their Reserve for a phased residential and/recreational
development known as “North Shore Estates”. Phase 1 will have 23 lake view lots (the “Lots”) located
on the north side of North Shore Road.
4. LEASEHOLD V. FREEHOLD
The interest in land that is offered for sale in North Shore Estates is a leasehold interest and not a freehold
A buyer of a leasehold owns the structures (e.g. the house) that are placed on the land. Unlike freehold
properties, a buyer will not own the land but will have the right to the exclusive use of the land for the
term of the lease.
All of the leases of North Shore Estates are long term, 110-year, leases. All 23 leases of Phase 1 are
registered in a federal land registry. All transfers of such leases will also be required to be registered in
the federal land registry.
Similar to a freehold, a leasehold in a Lot in North Shore Estates may be assigned/sold or bequeathed in a
When the term of the lease expires, unless it is renewed by agreement of the Nation and the then current
lessee, all rights of the lessee in the land ends. The model Lease provides that in the last 25 years of the
lease term, upon the request of either the Nation or a lessee, the parties will meet to discuss a possible
renewal of the Lease on terms that are acceptable to the Nation and the lessee.
5. WHO IS THE SELLER?
Tsu Holdings Limited Partnership (the “Partnership”), a limited partnership owned by Ts’uubaa-asatx, is
the initial lessee named in each of the Phase 1 Leases and the seller of each of those Leases. The
Partnership is the developer of Phase 1.
6. CONTRACT OF PURCHASE AND SALE
The Partnership intends to use a model purchase agreement (“Purchase Agreement”) in connection with
the sale/assignment of each lease of a Lot, a copy of which is available on the website for North Shore
Under the Purchase Agreement, the buyer is required to pay a $50,000 deposit within 48 hours of the
seller’s acceptance of the buyer’s offer. This deposit will be held by the Partnership’s lawyer in trust in
accordance with the terms of the Purchase Agreement.
The seller determines the closing date by providing a minimum of fifteen (15) business days’ notice to the
buyer. Depending on market conditions, the seller currently estimates that the closing date will be on or
about March 31, 2020. However, this is an estimate only and the actual closing date will be determined by
the seller as per the terms of the Purchase Agreement.
On the closing date, the buyer is required to pay the remainder of the purchase price. On the following
date, the buyer will be entitled to possession of the purchased Lot.
If the seller does not provide notice of a closing date that is on or before September 30, 2021, the buyer
has the option to end the Purchase Agreement and obtain a return of their deposit.
As part of the closing, the seller intends to provide title insurance from FCT (formerly, First Canadian
Title) to the buyer and the buyer’s lender, if applicable.
A buyer will need to retain the services of a notary or lawyer in connection with the purchase. It will be
the responsibility of the buyer’s lawyer or notary to submit the transfer/assignment of lease to Ts’uubaa-
asatx lands office for registration in the First Nations Land Registry. Registration is required for the transfer/assignment to be valid.
7. THE LEASE
Each lease of a Lot is based on a model Lease prepared for Phase 1 of North Shore Estates. The salient
elements of the model Lease includes the following:
• Ts’uubaa-asatx is the lessor and the Partnership is the lessee. Each Lease has been (or will be)
registered in the First Nations Lands Registry with a registration number assigned to it. Each
Lease has a term of 110 years with an expiry date of July 31, 2130. All basic rent under each
Lease has been fully paid for the entire term of the Lease. In other words, once the buyer has paid
the purchase price for the Lease to the Partnership, there will be no more rent payable under the
Lease for the duration of the 110-year lease term.
• Each Lease permits the lessee to use the Lot for the purposes of a residential dwelling. A mobile
home or a manufactured home is not permitted. An accessory building, not to exceed 200 square
feet, may be placed on the Lot. This development is not a bare land strata. There is no common
property or strata fees.
• Each Lease, as well as Ts’uubaa-asatx Land Code, gives the lessee the right to access other parts
of the Reserve, including the beach front along Cowichan Lake, for valid social or recreation
• All construction on a Lot must comply with applicable laws and the Building Scheme. Before any
construction begins, a lessee is required to submit plans and specifications to the Partnership, or
its agent, for approval under the Building Scheme. A $10,000 security deposit is required to be
paid to the Partnership under the Building Scheme to ensure compliance. Upon the Partnership
being satisfied that all of the requirements of the Building Scheme have been met, the security
deposit will be returned. Once the required plans are approved under the Building Scheme, a
lessee is required to apply for a building permit, before construction and an occupancy permit,
before occupancy, similar to construction off reserve. Both permit applications are submitted to
the Nation as the governing authority.
• A lessee may freely assign/sell/bequeath their Lease without Ts’uubaa-asatx’s consent.
• There are no rental restrictions in the Lease.
• A lessee will have certain ongoing obligations under the Lease, including the obligation to pay
ongoing third party expenses, such as property taxes and utilities, to maintain insurance, to
maintain, repair, up keep, replace and manage the premises, to maintain the landscape in a neat
and tidy condition and keep the adjacent sidewalks free and clear of obstructions, ice and snow.
• A lessee of a bare Lot will also be required to commence construction on the Lot within 36
months from the date of the purchase from the Partnership and to complete construction of a
detached home with 12 months of start of construction.
• If during the term of the Lease, there is substantial or complete destruction of the improvements
on the Lot, the lessee will be required to commence rebuilding within 12 months from the date of
such destruction and to complete the rebuilding of the detached home within 12 months of the
start of construction.
• If there is a default by a lessee of their obligations under a Lease, the Nation, as the lessor, may
pursue the lessee in court but does not have the right to terminate the Lease. The only exceptions
are if the lessee fails to start or complete construction of a detached home, or fails to rebuild after
substantial or complete destruction, within the time frames provided for under the Lease, in which
case, if the lessee does not cure the default after reasonable notice has been given by the Nation,
the Nation will have the right to terminate the Lease.
• At the end of the 110-year term of a Lease, unless the Nation and the then current lessee agree to
renew the Lease, the Lease will end and all rights of the lessee under the Lease will end. Each
Lease provides that in the last 25 years of the lease term, upon the request of either the Nation or
the lessee, the parties will meet to discuss a possible renewal of the Lease on terms that are
acceptable to the Nation and the lessee.
• On notice from the Nation to a lessee given in the last year of the lease term, the Nation may
require the lessee to either leave improvements on the Lot or remove some or all of the
The model Lease meets the CMHC lending requirements for leasehold interests.
There are no Property Transfer Tax (BC), foreign-buyers tax (BC) or GST (Canada) payable on the
purchase of a Lease of a Lot.
The Empty Homes Tax (Vacancy Tax) is not applicable to the Reserve.
Leaseholders of Reserve land are required to pay annual property taxes to the Nation. The Nation’s
process for assessing and levying property taxes is very similar to a local government. On or before
December 31 of each year, BC Assessment Authority will prepare and send assessment notices to the
registered holders of leases of Reserve land. Based on those assessment notices, the Nation will generate
tax notices and send them to lessees, on or before June 2 of the taxation year. The mill rates set by the
Nation each year will be comparable to those set by the Town of Lake Cowichan. Property taxes are due
on or before July 2 of the taxation year.
10. WHAT SERVICES ARE AVAILABLE?
Each Lot will have sewer, water, storm water, power and telephone services available for hook up at the
Sewer and water services will be provided by the Town of Lake Cowichan pursuant to a servicing
agreement between the Town and the Nation. The Nation will invoice each lessee for water and sewer
connections (estimated to be $1300 for each such connection for 2021) and for ongoing sewer and water
services, at rates comparable to those charged by the Town of Lake Cowichan.
BC Hydro will be the supplier of electricity for the Lots. It will be up to each lessee to arrange for service
directly with BC Hydro.
TELUS will be the supplier of telephone service for the Lots. It will be up to each lessee to arrange for
service directly with TELUS.
Fire protection and emergency response services will be provided by the Town pursuant to a servicing
agreement between the Town and the Nation. No extra charge will be assessed against the lessees for this
Snow removal of the interior road within North Shore Estates will be carried out by the Nation. No extra
charge will be assessed against the lessees for this service.
Each lessee will need to arrange and pay for their own garbage pick-up services.
11. VOTING RIGHTS OF LESSEES
A lessee of North Shore Estates, who is an eligible elector under applicable provincial or federal
legislation, is entitled to vote in provincial and federal elections.
A lessee of North Shore Estates who is not a member of the Nation has no input on the composition of the
12. WHAT KIND OF HOME CAN A LESSEE BUILD?
A lessee may purchase pre design home plans from the Partnership. A lessee may also build a custom
home on their Lot. All construction must comply with the requirements of the Building Scheme to ensure
that the development is esthetically pleasing and value is preserved for all lessees.
13. DELIVERY OF MAIL
Mail will be delivered to community mail boxes on site.
14. STORAGE OF WATER EQUIPMENT
The Partnership plans to have storage available for rent for small, non-motorized, water equipment along
the lake shore.