British Columbia Strata Special Levies: Approval and Payment

A special levy notice can be a shock, especially if the amount is large. It is an extra charge on owners, separate from regular strata fees, and the strata has to follow set steps to impose it.

This article walks through how a special levy is approved, how your share is worked out, what happens if you pay late, and what to know if you sell your lot while a levy is running in British Columbia.

This article covers the law of British Columbia.

How a special levy is approved

When the shares are calculated by the strata-fee method, meaning by unit entitlement under ss. 99, 100 or 195 of the Strata Property Act, a special levy needs a 3/4 vote at an AGM or SGM.

The court route has been available since December 12, 2013. Whether it fits a particular situation is something a lawyer can confirm.

How the amount is split and what the resolution must say

The resolution approving the levy must state the purpose, the total amount, the method of calculating each lot's share, each lot's amount and the due date or dates. If your notice leaves any of these out, ask the strata council or manager for the resolution and the meeting minutes.

An alternative split is possible, but it needs a unanimous vote.

Payment deadlines, late interest and liens

The due dates are the ones set in the approved resolution. Late interest may be set by bylaw or resolution, up to 10% per annum compounded annually, and unpaid levies can be secured by a lien.

• The strata may register a Certificate of Lien against a lot for unpaid special levies.
• It must remove the lien within one week of payment.
• If a dispute has gone to arbitration, the Civil Resolution Tribunal or court, the disputed amount may be paid into court or to the strata in trust. This allows a Form F to be issued despite the dispute.

If the strata collects more than it spends, unused special levy money must be returned to owners in proportion to their contributions. If no owner is owed more than $100, it may go to the contingency reserve fund instead.

If you sell your lot while a levy is running

If a special levy is approved before the conveyance, the seller owes the part payable before the conveyance and the buyer owes the part payable on or after it. The parties may negotiate how any refund is handled between them.

A seller or buyer can also ask for a Form F Certificate of Payment. The strata must issue it within one week of a request if the owner owes nothing, any debt has been paid into court or to the strata in trust, or satisfactory arrangements are made. It is current for 60 days. The fee is capped at $15, and a rush fee may apply if less than 7 days' notice is given.

The Land Title Office requires a Form F to register a conveyance of a strata lot. Debts on a Form F can include strata fees and special levies.

What to do next

• Find the approved resolution and confirm the purpose, total, your share and the due dates.
• Check that your share matches the method stated in the resolution.
• Ask about late interest before you miss a due date.
• If you cannot pay on time, contact the strata early, since an unpaid levy can lead to a lien.
• If you are buying or selling, agree in writing who pays each instalment and any refund.
• If you think the levy was improperly approved, speak to a lawyer before paying a disputed amount in trust.

Frequently asked questions