Special Levy

A special levy is a one-time charge approved by a strata corporation to fund major repairs or upgrades that are not covered by the operating fund or contingency reserve fund, such as roof replacement, elevator upgrades, or building envelope remediation. Under the Strata Property Act (SBC 1998, c. 43), a special levy must be approved by a resolution passed at an annual or special general meeting, typically requiring a three-quarters vote unless the strata's bylaws specify otherwise. Individual unit costs can range from $10,000 to $50,000 or more depending on the scope of work and number of strata lots.

Under the Strata Property Act (SBC 1998, c. 43), a special levy generally requires approval by a three-quarters vote of eligible voters at an annual or special general meeting. However, a unanimous vote is required if the special levy funds a repair or improvement that, if it were a depreciation item, would require unanimous approval under the Act. Owners and buyers should review the strata corporation's bylaws and the specific wording of the resolution, as the threshold can affect the levy's validity.

Under the Strata Property Act (SBC 1998, c. 43), if a special levy has been approved by the strata corporation before the completion date of a sale, the incoming buyer assumes responsibility for any portion of that levy that remains unpaid at the time of completion. This means a buyer could be obligated to pay a significant sum even though the levy was voted on before they owned the unit. Buyers should carefully review strata documents, including the Form B Information Certificate, to identify any approved but unpaid special levies before completing a purchase.

The Form B Information Certificate, issued under the Strata Property Act (SBC 1998, c. 43) and its Regulation, requires the strata corporation to disclose any existing or approved special levies, including the amount and payment schedule. A buyer or their licensee should obtain and review the Form B prior to removing subjects, as it is the primary document revealing financial obligations attached to the strata lot. If a special levy is not disclosed on the Form B but was validly approved, the buyer may still be bound by it, making thorough due diligence critical.

Yes, the Strata Property Act (SBC 1998, c. 43) permits a strata corporation to structure a special levy so that it is payable in installments, provided the resolution approving the levy specifies the installment amounts and due dates. The resolution must clearly set out the total amount to be raised, the purpose of the levy, and each owner's contributing share. Buyers should confirm from the Form B and the meeting minutes whether any approved levy is due in a lump sum or over multiple payments, as this affects their financial obligations upon completion.

Property Transfer Tax (PTT) under the BC Property Transfer Tax Act is calculated on the fair market value of the property at the time of transfer, not on whether a special levy is outstanding. An assumed special levy obligation does not directly reduce the PTT calculation, and buyers cannot deduct an unpaid special levy from the property's fair market value for PTT purposes. Buyers should consult the BC Ministry of Finance or a qualified tax professional regarding how assumed strata obligations interact with their specific PTT calculation.

Under the Real Estate Services Act (RESA) and the rules administered by the British Columbia Financial Services Authority (BCFSA), a licensee acting for a buyer has a duty to disclose all known material latent facts about a property, which includes a significant approved special levy that the buyer might not otherwise discover. A licensee must advise their buyer client to obtain and review the Form B Information Certificate and relevant strata minutes to identify any such levies. Failure to disclose a known material fact could constitute a breach of the licensee's professional obligations under RESA and BCFSA rules.

Under the Strata Property Act (SBC 1998, c. 43), a strata corporation has the ability to file a lien against a strata lot for unpaid strata fees and levies, including special levies, to secure the amounts owing. This lien mechanism provides the strata corporation with a legal remedy to recover unpaid amounts from the registered owner of the lot. Buyers conducting due diligence should search for any registered liens against the strata lot title at the BC Land Title and Survey Authority as part of their conveyancing process.

Under the Strata Property Act (SBC 1998, c. 43), a strata corporation may use its contingency reserve fund (CRF) to pay for significant repairs or replacements, but only with the approval of a resolution by a three-quarters vote if the expenditure exceeds prescribed limits set out in the Strata Property Regulation. If the CRF is insufficient to cover the full cost of a major repair, the strata corporation may approve a special levy to make up the shortfall. Buyers should review the strata's depreciation report and most recent financial statements to assess whether the CRF is adequately funded and whether a special levy may be imminent.

A strata owner who believes a special levy was approved in violation of the Strata Property Act (SBC 1998, c. 43) — for example, due to a procedurally defective meeting or an insufficient vote — may apply to the BC Civil Resolution Tribunal (CRT) for orders relating to strata disputes, including disputes about the validity of a levy. The CRT has jurisdiction over most strata property disputes in BC, with the BC Supreme Court having jurisdiction over more complex matters. An owner should obtain legal advice promptly, as delay in challenging a levy may affect their ability to obtain relief.