Can a BC Strata Charge a Special Levy and How Is It Approved?

A notice arrives saying your strata wants to raise a large sum for a roof, a pipe replacement or an insurance shortfall. You want to know whether the strata can really do that, how owners must vote, and how much you will pay and when.

This article explains how a special levy is approved in British Columbia, how the cost is divided, what happens when payments are late, and how a sale in the middle of a levy is handled. Your strata's bylaws and the exact wording of the resolution matter, so treat this as a general guide.

This article covers the law of British Columbia.

What a special levy is and why stratas use one

A special levy is an extra charge on owners, on top of regular strata fees, to raise money for a specific expense. The Strata Property Act requires a strata to keep an operating fund for expenses that occur once a year or more often, and a contingency reserve fund (CRF) for expenses that occur less often or do not usually occur, both funded by strata fees.

When those funds will not cover a cost, owners can vote to raise the money through a special levy. CRF money itself can generally be spent only on expenditures approved by a 3/4 vote at an AGM or SGM, with listed exceptions such as a depreciation report.

How a special levy is approved

If each lot's share is calculated by the strata-fee method (unit entitlement), the levy needs a 3/4 vote at an AGM or SGM. The resolution must state the purpose, the total amount, how each lot's share is calculated, each lot's amount and the due date or dates.

If the shares are calculated some other way to divide the expense fairly, the Act requires a unanimous vote instead. That is a much higher bar, so check which method your resolution uses.

There is also a 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.

Your share, due dates and late payment

• Your share and the due dates should appear in the approved resolution, because the Act requires them to be stated.
• If you pay late, the strata may charge interest set by bylaw or resolution, up to 10% per annum compounded annually.
• Unpaid levies can be secured by a lien, and a Certificate of Lien may be registered against a lot for unpaid special levies.
• The strata must remove a lien within one week of payment.

If money is left over after the project, it must be returned to owners in proportion to their contributions. If no owner is owed more than $100, it may instead go to the CRF.

If you are selling or buying during a levy

Where 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 on the Information Certificate (Form B), which discloses approved future special levies, and it is binding on the strata for a person who reasonably relied on it. A buyer can ask for it even during the subject-removal period. The strata may charge up to $35 plus photocopying, and must provide it within one week of the request.

The Land Title Office also requires a Certificate of Payment (Form F) to register a conveyance of a strata lot. Within one week of a request by an owner or purchaser, the strata must issue it if the owner owes nothing, if any debt has been paid into court or to the strata in trust, or if satisfactory arrangements are made. The fee is capped at $15.

What to do next

• Read the notice of meeting and the proposed resolution for the purpose, total, your share and the due dates.
• Confirm which method splits the cost, since that affects whether 3/4 or a unanimous vote applies.
• Ask for the minutes and records if you need background; owners can inspect records free and copies are capped at 25 cents per page.
• If you are selling or buying, request a Form B and Form F early and have your lawyer address levies in the contract.
• Speak to a lawyer if the vote was close, the split looks unfair or you are unsure whether the resolution was valid.

Frequently asked questions