Notice to Mortgagee

A Notice to Mortgagee is written notice that a strata corporation may or must give to a mortgagee (lender) under section 113 of the Strata Property Act, SBC 1998, c. 43, informing the mortgagee that money is owing on a strata lot. The strata corporation can only send this notice if the mortgagee has first filed a Mortgagee's Request for Notification under section 60 of the Strata Property Act. It is not a standalone defined term but refers to the notice process created by these two sections working together.

A strata corporation sends a Notice to Mortgagee under section 113 of the Strata Property Act to inform the mortgagee that the strata lot owner owes money to the strata corporation, such as unpaid strata fees or special levies. This allows the mortgagee to be aware of financial obligations that could affect the security of their mortgage interest. The notice protects both the strata corporation's lien rights and the mortgagee's ability to monitor and potentially remedy the default.

A Mortgagee's Request for Notification is a document filed by a mortgagee (lender) with the strata corporation under section 60 of the Strata Property Act, requesting that the strata corporation notify the mortgagee if the strata lot owner becomes in arrears or if certain other events occur. Once filed, the strata corporation is obligated to send notices, including a Notice to Mortgagee under section 113, to that mortgagee. Verify the current filing requirements and prescribed form details with a BC lawyer or notary before acting.

Under section 113 of the Strata Property Act, a strata corporation must give notice to a mortgagee if the mortgagee has filed a Mortgagee's Request for Notification under section 60 and the strata lot owner is in arrears or other specified circumstances arise. If no Mortgagee's Request for Notification is on file, the strata corporation has no obligation to notify the mortgagee. Verify the exact trigger events and timing requirements with a BC lawyer or notary before acting.

Section 113 of the Strata Property Act requires the Notice to Mortgagee to state the amount owing to the strata corporation and provide other prescribed details. The Strata Property Regulation may set out additional content requirements and prescribed forms. Verify the current prescribed form and content requirements with a BC lawyer, notary, or by reviewing the current Strata Property Regulation before drafting or sending a Notice to Mortgagee.

Yes. Under section 113 of the Strata Property Act, after receiving a Notice to Mortgagee, the mortgagee may choose to pay the strata corporation the amounts owing to protect its security interest in the strata lot. Any amounts paid by the mortgagee become part of the mortgage debt owed by the strata lot owner to the mortgagee. This allows the mortgagee to cure the owner's default and preserve its priority lien position.

If a strata corporation fails to comply with its obligation under section 113 of the Strata Property Act to send a Notice to Mortgagee (when a Mortgagee's Request for Notification is on file), the mortgagee's priority interest may be affected and the strata corporation may face liability or challenges in enforcing its lien. The specific consequences depend on the circumstances and may involve disputes about lien priority under sections 116 and 117 of the Strata Property Act. Verify the remedies and consequences for your situation with a BC lawyer before acting.

Under sections 116 and 117 of the Strata Property Act, a strata corporation has a lien against a strata lot for unpaid strata fees and other amounts owing. A Notice to Mortgagee under section 113 informs the mortgagee of amounts that may be subject to that lien, allowing the mortgagee to protect its interest by paying the debt or taking other action. The notice process helps clarify priority disputes between the strata corporation's statutory lien and the mortgagee's registered security interest.

The Strata Property Act does not specify an automatic expiry for a Mortgagee's Request for Notification filed under section 60. Once filed, it generally remains in effect unless withdrawn or until the mortgage is discharged. Verify the current practice, including whether re-filing is recommended after ownership or mortgage changes, with a BC lawyer or notary before relying on an older request.

The Strata Property Act, SBC 1998, c. 43, and the Strata Property Regulation contain the statutory framework for Notice to Mortgagee (section 113) and Mortgagee's Request for Notification (section 60). Current prescribed forms, if any, and detailed procedures are available from the BC Ministry of Attorney General, the strata corporation's lawyer, or by consulting a BC lawyer or notary. Verify current forms and procedures at www.gov.bc.ca or with a BC legal professional before acting.