How a Special Levy Is Approved in a British Columbia Strata

A notice of a special levy can be a shock. It is a one-time charge on top of regular strata fees, usually for a cost the budget and the contingency reserve fund do not cover. Before you pay or object, it helps to know how it must be approved.

This article covers the vote required, what the resolution must say, how your share is set, what happens if you are buying or selling, and what to do with unused money. Details can turn on the strata's own bylaws and facts, so a lawyer can confirm your situation.

This article covers the law of British Columbia.

The vote needed

Under Strata Property Act s. 108(2)(a), a special levy whose shares are calculated by the strata-fee method (unit entitlement under sections 99, 100 or 195) needs a 3/4 vote at an annual or special general meeting.

If shares are calculated some other way to fairly divide the expense, section 108(2)(b) requires a unanimous vote.

There is one court route. If a levy for a common property repair needed for safety or to prevent significant loss or damage gets majority support but less than 3/4, the strata may apply to the BC Supreme Court for an order approving it. This has been available since December 12, 2013.

What the resolution must say

Section 108(3) sets out what the resolution must contain:

• The purpose of the levy.
• The total amount.
• The method of calculating each lot's share.
• The amount for each lot.
• The due date or dates.

If a notice or resolution leaves out one of these, ask council or the strata manager about it in writing. Whether a gap affects the levy's validity depends on the facts and is worth raising with a lawyer.

How your share is worked out and when it is due

Where the strata-fee method is used, your share follows your lot's unit entitlement. The resolution lists the due date or dates, so you may be able to pay in instalments if the resolution sets them that way.

Late payment has consequences. 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. Under section 116 the strata may register a Certificate of Lien against a lot for unpaid special levies, and must remove it within one week of payment.

Buying or selling while a levy is in play

Under section 109, 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.

Buyers can see approved levies in advance. The Form B discloses approved future special levies, and the Province tells buyers to review approved special levies and their due dates. A purchaser with an agreement to buy, including one still in the subject-removal period, may request a Form B.

Sellers should know that the strata must issue a Certificate of Payment (Form F) 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. The Land Title Office requires a Form F to register a conveyance of a strata lot. Where a levy amount is disputed, paying it into court or to the strata in trust once a proceeding has begun can allow a Form F to be issued.

Unused money and next steps

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 CRF instead.

• Read the resolution and confirm it includes the purpose, total, method, your amount and due dates.
• Check the minutes to see the vote count against the 3/4 requirement.
• If you are selling, ask for the Form F and sort out any levy split with the buyer in your contract.
• If you are buying, request the Form B and review approved special levies.
• Get legal advice before paying or challenging a levy you think was passed incorrectly.

Frequently asked questions