Special Levy Resolution

Special levy resolutions are governed by the Strata Property Act (SBC 1998, c. 43) and its Regulation. The Act sets out the procedural requirements that a strata corporation must follow when passing a resolution to collect a one-time extraordinary payment from owners for a major repair or expense not covered by the contingency reserve fund.

Under the Strata Property Act, a special levy resolution generally requires a three-quarters vote of eligible voters at an annual general meeting (AGM) or special general meeting (SGM), unless the strata's bylaws require a higher threshold. However, a unanimous vote is required in certain circumstances, such as where the levy would be used for a purpose that benefits only some strata lots — consult the current Strata Property Act and your strata's bylaws for the exact applicable threshold.

Under the Strata Property Act, a special levy resolution must specify the total amount of the levy, the purpose for which the funds will be used, the amount each strata lot must contribute (calculated in accordance with unit entitlement), and the date by which payment is due. Omitting any of these required elements can make the resolution procedurally defective.

Each strata lot's contribution to a special levy is calculated based on its unit entitlement relative to the total unit entitlement of all strata lots in the corporation, as set out in the Strata Property Act. Unit entitlement figures are found in the strata plan filed in the Land Title Office, so an owner with a higher unit entitlement will pay a proportionally larger share of the total levy.

Yes — under the Strata Property Act, a special levy resolution must be approved by eligible voters at either an annual general meeting (AGM) or a special general meeting (SGM) of the strata corporation. The meeting must be properly convened with adequate notice to all owners as required by the Act and the strata's bylaws.

Yes — Form B (Information Certificate) issued under the Strata Property Act must disclose any special levy that has been approved by the strata corporation but not yet fully collected. This gives a prospective buyer notice of the outstanding financial obligation before completing the purchase.

Under the Strata Property Act, once a special levy resolution is passed, the obligation to pay attaches to the strata lot. If the sale completes after the resolution has been approved, the buyer takes on responsibility for paying any outstanding levy amounts, regardless of the fact that the resolution was passed when a prior owner held the lot — this is why reviewing Form B carefully before completion is essential.

Under the Real Estate Services Act (RESA) and BCFSA's Rules, a licensee must act in the best interests of their client and ensure the client receives all material information relevant to the transaction. An outstanding special levy disclosed on Form B is material information that the licensee must bring to the client's attention so the client can make an informed decision about the purchase.

No — the Strata Property Act requires that the special levy resolution specify the purpose for which funds are collected, and the strata corporation must use those funds only for that stated purpose. Using the funds for a different purpose would not be authorized under the resolution and could expose the strata corporation and its council to legal liability.

Property Transfer Tax under the BC Property Transfer Tax Act is calculated on the fair market value of the property being transferred, not directly on special levy obligations. However, an outstanding special levy may affect the negotiated purchase price, which in turn affects the PTT payable — buyers should review Form B disclosures carefully and consult the BC Ministry of Finance or appropriate advisors regarding how any price adjustments interact with their PTT calculation.