The short answer
Strata fees fund shared expenses through the operating and contingency reserve funds. A special levy collects money for a specified purpose in addition to regular fees. Read both the budget and any levy resolutions before comparing costs.
BC: budgeting and strata feesRegular strata fees
Check what is included and what you pay separately.
Special levy
Read the approved amount, your share and payment dates.
Reserve planning
Compare the reserve fund with upcoming work and technical reports.
The basics
Two ways a strata collects money from owners
A strata corporation is the legal body made up of every owner in a building or complex. It pays shared bills with money it collects from owners. The regular way is the monthly strata fee. The second way is a special levy, a one-off charge voted on for a stated purpose.
Strata fees come from the yearly budget. Owners approve that budget by a majority vote at the annual general meeting (AGM). The money goes into two pots. The operating fund pays costs that come up once a year or more often, such as utilities and routine upkeep. The contingency reserve fund (CRF) is for costs that happen less than once a year, like a roof or elevator.
Since November 1, 2023, the yearly CRF contribution must be at least 10% of the operating fund. That is a floor. When a big project costs more than the reserve holds, owners may be asked to approve a special levy.
Why it matters
Why the levy rules matter to a buyer
A special levy needs a 3/4 vote when it is shared by unit entitlement. Unit entitlement is the number on the strata plan that sets each lot’s share of costs. If owners want to split a levy some other way, the vote must be unanimous. For repairs to common property, a strata that wins a majority but not 3/4 can ask the BC Supreme Court to approve the levy.
Timing decides who pays. The seller owes any part of a levy payable before the home is conveyed (legally transferred). The buyer owes any part payable on or after that date. A levy approved just before you buy can land on you.
How it works
How to check fees and levies on a strata listing
Find the unit entitlement
Look up the lot’s unit entitlement and the total for the strata plan. Your share of the budget and of most levies follows that ratio.
Read the current budget line by line
Note what the fee covers, such as heat or hot water. Compare buildings on the same items.
Check the reserve against the plan
Compare the CRF balance with the work listed in the depreciation report. A thin reserve next to a large upcoming project is a signal to read the minutes closely.
List every approved levy
For each levy, write down the total, the share method, your lot’s amount and every payment date. The resolution must state the dates.
Map each due date to completion
Mark which instalments fall before conveyance and which fall on or after. Your lawyer or notary can confirm how the contract handles them.
Look for votes that have not happened yet
Meeting notices and minutes may show a levy proposed for an upcoming meeting. Ask how the contract deals with a levy approved after your offer.
Avoid these
Strata cost mistakes that cost buyers money
Comparing totals, not contents
One fee may include heat and hot water while another does not. Line up what each budget pays before deciding which building is cheaper.
Reading only the latest minutes
A levy may have been approved a year ago with instalments still to come. Read back far enough to catch every live resolution.
Assuming the seller pays every levy
The rule splits a levy by due date, not by approval date. Instalments due after conveyance are the buyer’s unless the contract says otherwise.
Treating the 10% minimum as enough
The legal floor says nothing about what this building’s own roof, pipes or windows will cost. Use the depreciation report for that.
Example
Working out your share of a levy
Illustration only. The numbers are invented to show the arithmetic. Use the strata plan and the levy resolution for real figures.
| Levy approved by 3/4 vote | $500,000 total |
|---|---|
| Your lot’s unit entitlement | 80 out of a plan total of 10,000 |
| Your share | 80 ÷ 10,000 = 0.8% |
| Your levy amount | $500,000 × 0.8% = $4,000 |
| Instalment 1, due before completion | $2,000, owed by the seller |
| Instalment 2, due after completion | $2,000, owed by the buyer |
If the project later costs less, the strata must return the leftover money when at least one owner would get more than $100. Otherwise the extra may go into the reserve fund.
Questions to ask
Questions for the people involved
The strata manager or council
- Is any special levy proposed for an upcoming meeting?
- What is the current CRF balance, and what is already committed?
- Which items in the budget does the monthly fee include?
- Has the strata asked a court to approve a levy?
Your lawyer or notary
- Which levy instalments fall before and after my completion date?
- How does the contract handle a levy approved after my offer?
Yourself
- Could I pay a levy of this size without new borrowing?
- Have I read the strata budget and not just the fee?
FAQ
Common questions
Who pays a special levy when a strata unit sells?
BC’s rule splits the levy by due date. The seller owes the portion payable before the unit is conveyed to the buyer. The buyer owes the portion payable on or after that date. The contract can set a different deal between the two, so have your lawyer or notary check the dates and wording.
Is a lower strata fee a better deal?
Not on its own. A low fee can mean fewer included services or a slowly growing reserve. Compare what each fee covers, the reserve balance and planned work.
What vote does a special levy need?
A 3/4 vote of owners when the levy is shared by unit entitlement. A unanimous vote is needed to share it any other way. For common property repairs, a strata with majority support but less than 3/4 may ask the BC Supreme Court to approve it.
Can strata fees go up?
Yes. Owners approve a new budget at each AGM by majority vote, and fees follow it. Read past budgets to see how the fee has moved.
What happens to leftover levy money?
If a project costs less than the levy raised, the strata must return the excess when at least one owner is entitled to more than $100. If no owner would get more than $100, the money may go into the contingency reserve fund instead.
