What Is a Form F Certificate of Payment in BC Strata?

If you are selling or buying a strata lot in British Columbia, you will probably hear about the Form F. It is a short document, but it can hold up a closing if it is missing or out of date.

This article explains what the Form F confirms, who requests and issues it, what debts it covers, and how it differs from the Form B.

This article covers the law of British Columbia.

What a Form F confirms

A Form F is a Certificate of Payment. Under section 115(1) of the Strata Property Act, within one week of a request by an owner or purchaser, the strata must issue it if the owner owes nothing, or any debt has been paid into court or to the strata in trust, or satisfactory arrangements are made.

It is current for 60 days. If your closing slips beyond that, you may need a fresh certificate.

Who requests it, who issues it, and what it costs

• Who requests: an owner, purchaser or authorized person.
• Who issues: the strata council, and a strata manager often prepares it.
• Fee: the regulation caps the Certificate of Payment fee at $15.
• Timing: the Act says one week. A rush fee may apply if less than 7 days' notice is given.
• Sections: if the strata has sections, ask both the strata corporation and the section.

The cap is a maximum, so a strata may charge less. A request can be made by an owner, a purchaser or an authorized person, so someone you authorize can ask for the certificate on your behalf.

What debts are covered

Debts include strata fees, special levies, fines, bylaw-remedy costs, work-order reimbursements and the lot's share of a judgment. A Form F may include amounts owing for fines and remedy costs and for liens, but it must not include undetermined damages claims.

A strata may register a Certificate of Lien against a lot for unpaid strata fees, special levies, certain work reimbursements or the lot's share of a judgment, and it must remove the lien within one week of payment. No lien may be registered for fines or remedy costs.

Debts can grow if they sit unpaid. 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. Before a strata can fine you, it must receive a complaint, give written particulars and give you a reasonable opportunity to answer, including a hearing if you ask for one.

Disputed amounts and the role at closing

If you dispute a debt, you do not necessarily have to delay the sale. Once arbitration, a Civil Resolution Tribunal claim or court proceedings have begun, the disputed amount may be paid into court or to the strata in trust, which allows a Form F to be issued despite the dispute.

At closing, the Land Title Office requires a Form F to register a lease or assignment of a lease, an agreement for sale, or a conveyance of a strata lot.

If a special levy is approved before the sale completes, 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. How this plays out in your sale depends on the contract, so it is worth confirming with a lawyer.

Form F is not the same as Form B

The Form B discloses items such as monthly strata fees, amounts owing, approved future special levies, the contingency reserve fund balance and a summary of insurance. Buyers generally review the Form B before they commit, while the Form F deals with payment of the debts.

A buyer in the subject-removal period can ask for a Form B, because a purchaser is anyone with an agreement to buy a strata lot not yet conveyed, and the agreement does not have to be unconditional. Information disclosed in a Form B is binding on the strata corporation in its dealings with a person who reasonably relied on it. If the strata has sections, a Form B should be requested from both the strata corporation and the section.

What to do next

• Ask your lawyer, notary or manager to request the Form F well before the completion date, ideally with at least 7 days' notice.
• Pay any outstanding strata fees, levies or fines so the certificate can be issued.
• If an amount is disputed and arbitration, a Civil Resolution Tribunal claim or court proceedings have begun, ask a lawyer about paying it into court or to the strata in trust.
• Check that the certificate is still current on the completion date.
• Request the Form B separately if you are buying.

Frequently asked questions