Strata Fees

Strata fees in British Columbia are governed by the Strata Property Act (SBC 1998, c. 43) and its Regulation. The Act sets out the rules for how strata corporations must collect, manage, and allocate fees from owners, including contributions to operating funds and the contingency reserve fund.

Under the Strata Property Act, strata fees are typically calculated based on each strata lot's unit entitlement, which is a number assigned to each lot that reflects its proportionate share of common expenses. The strata corporation may use an alternative formula if approved in its bylaws, but any such formula must comply with the Act and Regulation.

Strata fees fund the strata corporation's operating fund, which covers day-to-day expenses such as maintenance of common property, building insurance, shared utilities, landscaping, and management costs. A portion of each owner's strata fee is also allocated to the contingency reserve fund, which is held for major future repairs and replacements, as required under the Strata Property Act.

The contingency reserve fund (CRF) is a savings fund maintained by the strata corporation under the Strata Property Act to pay for unanticipated or major future expenses, such as roof replacements or elevator repairs. Each strata fee payment includes a contribution to the CRF, and the Strata Property Act and Regulation set minimum contribution requirements to ensure the fund remains adequately funded.

Strata fees are most commonly collected on a monthly basis, with payment typically due on the first day of each month, unless the strata corporation's bylaws specify a different schedule. The Strata Property Act permits the strata corporation to set the due date in its bylaws, so owners should review their specific bylaws for precise payment terms.

Under the Strata Property Act, a strata corporation may charge interest on overdue strata fees at a rate set by its bylaws, and unpaid fees constitute a debt owed by the owner to the strata corporation. The strata corporation can pursue recovery through the Civil Resolution Tribunal or the BC courts, and may also file a lien against the strata lot to secure the amount owed.

A buyer can obtain strata fee information from the Form B Information Certificate, which the strata corporation is required to provide under the Strata Property Act upon request. The Form B discloses the current monthly strata fee for the specific strata lot, as well as any amounts owing by the current owner, giving the buyer a clear picture of ongoing financial obligations.

Yes, a strata corporation can increase strata fees by approving a new annual budget at a general meeting, which requires approval by a majority vote of owners present or represented at the meeting, in accordance with the Strata Property Act. The approved budget determines each owner's strata fee for the coming year, and owners should receive notice of the proposed budget before the meeting as required by the Act.

No, strata fees and special levies are distinct charges under the Strata Property Act. Strata fees are regular, ongoing contributions to the operating fund and contingency reserve fund, while a special levy is a separate one-time or short-term charge approved by a three-quarters vote of owners to fund a specific expense that cannot be covered by existing funds.

Strata fees themselves do not directly affect the Property Transfer Tax (PTT) calculation, which is based on the fair market value of the strata lot at the time of transfer under the BC Property Transfer Tax Act. However, buyers should be aware that any outstanding strata fee arrears disclosed on the Form B may affect purchase negotiations, and the PTT is calculated at rates of 1% on the first $200,000, 2% on the portion up to $2,000,000, 3% on the portion up to $3,000,000, and an additional 2% on residential value exceeding $3,000,000.