Notice to Mortgagee

In BC strata law, a Notice to Mortgagee is a written notice that a strata corporation gives to a registered mortgagee of a strata lot, informing that mortgagee of money owing in relation to that lot, such as unpaid strata fees or special levies. This notice mechanism is governed by section 113 of the Strata Property Act (SBC 1998, c. 43). It is not a standalone defined term in the Act but describes the strata corporation's obligation or right to communicate financial arrears information to a qualifying mortgagee.

Yes. Under section 60 of the Strata Property Act, a mortgagee must first file a Mortgagee's Request for Notification with the strata corporation before the strata corporation is obligated to send that mortgagee notices about money owing on the strata lot. Without that filed request, the strata corporation has no statutory duty to notify the mortgagee under section 113. The request must be filed in accordance with the form and procedure contemplated by the Act and its Regulation.

Section 113 of the Strata Property Act (SBC 1998, c. 43) is the operative provision that authorizes or requires a strata corporation to give notice to a mortgagee about money owing on a strata lot. This section works in conjunction with section 60, which establishes the prerequisite step of the mortgagee filing a Mortgagee's Request for Notification. Together, these sections create the statutory framework for mortgagee notification in BC strata contexts.

A mortgagee files a Mortgagee's Request for Notification under section 60 of the Strata Property Act to ensure it receives advance warning if the owner of the mortgaged strata lot falls into arrears with the strata corporation for items such as strata fees or special levies. This is important because under BC law a strata corporation has a lien right against a strata lot for unpaid contributions, and being notified early allows the mortgagee to take protective steps before arrears accumulate significantly. Without filing that request, the mortgagee will not automatically receive such notices.

The notice process under sections 60 and 113 of the Strata Property Act relates to informing mortgagees of money owing, but the strata corporation's lien rights for unpaid strata fees and other contributions arise separately under the Act and are subject to their own statutory requirements and priority rules. The Notice to Mortgagee does not itself create or extinguish a lien; rather, it serves to alert the mortgagee so it can act to protect its security interest. For specific questions about lien priority and enforcement, the Strata Property Act and legal counsel should be consulted.

Yes, it can be relevant to a buyer's due diligence. When purchasing a strata lot in BC, a buyer typically requests a Form B Information Certificate from the strata corporation under section 59 of the Strata Property Act, which discloses amounts owing in relation to the strata lot. If a mortgagee has filed a Mortgagee's Request for Notification under section 60, that context signals the strata lot's financial history may be of concern. Understanding whether arrears exist, and whether a mortgagee has been notified of them, helps a buyer assess the financial health of the strata lot they are acquiring.

No. A Notice to Mortgagee under section 113 of the Strata Property Act is directed to the mortgagee, not to a buyer or licensee, and its existence or content does not constitute confirmation that a strata lot is free of arrears. A real estate licensee governed by the Real Estate Services Act and the BCFSA should advise clients to obtain a Form B Information Certificate under section 59 of the Strata Property Act, which provides the strata corporation's official disclosure of amounts owing on a strata lot. Licensees must meet their disclosure and due-diligence obligations under RESA and its Rules.

Foreclosure in BC is a judicial process governed by the BC Supreme Court Civil Rules and the Law and Equity Act, not a power-of-sale process as in some other provinces. When a mortgagee that has filed a Mortgagee's Request for Notification under section 60 of the Strata Property Act receives a Notice to Mortgagee under section 113 about arrears on a strata lot, that information may prompt the mortgagee to assess whether to commence foreclosure proceedings in BC Supreme Court to protect its security. The notice framework and the foreclosure process are legally distinct, though the arrears information contained in the notice may be relevant evidence in those proceedings.

Yes, PIPA (BC's Personal Information Protection Act) may be relevant because a Notice to Mortgagee can contain personal information about a strata lot owner, such as information about their financial arrears. Under PIPA, organizations including strata corporations must handle personal information responsibly and only disclose it for purposes consistent with the Act's requirements or as authorized by other legislation, such as the Strata Property Act. The statutory authority provided by sections 60 and 113 of the Strata Property Act provides the legal basis for the disclosure to the mortgagee, which is consistent with PIPA's permissive disclosure framework where another enactment authorizes the disclosure.

Yes, the Strata Property Act's provisions regarding notices to mortgagees continue to apply to a strata lot even when the registered owner has died and the estate is being administered under the Wills, Estates and Succession Act (WESA). The strata lot remains subject to strata fees and levies during estate administration, and a mortgagee that has filed a Mortgagee's Request for Notification under section 60 of the Strata Property Act would still be entitled to receive notices under section 113 if arrears arise. The executor or administrator of the estate, as the party responsible for managing estate assets, should be aware of ongoing strata financial obligations and any notices issued to the mortgagee.