Land Title Practice Manual

108 Special Levy

In This Volume

  • 108 (1) The strata corporation may raise money from the owners by means of a special levy.
  • (2) The strata corporation must calculate each strata lot’s share of a special levy
  • (a) in accordance with section 99, 100 or 195, in which case the levy must be approved by a resolution passed by a 3/4 vote at an annual or special general meeting, or
  • (b) in another way that establishes a fair division of expenses for that particular levy, in which case the levy must be approved by a resolution passed by a unanimous vote at an annual or special general meeting.
  • (3) The resolution to approve a special levy must set out all of the following:
  • (a) the purpose of the levy;
  • (b) the total amount of the levy;
  • (c) the method used to determine each strata lot’s share of the levy;
  • (d) the amount of each strata lot’s share of the levy;
  • (e) the date by which the levy is to be paid or, if the levy is payable in instalments, the dates by which the instalments are to be paid.
  • (4) The strata corporation must
  • (a) account for the money collected separately from other money of the strata corporation,
  • (b) invest all of the money collected in one or both of the following:
    • (i) investments permitted by the regulations;
    • (ii) insured accounts with savings institutions in British Columbia,
  • (c) use the money collected for the purpose set out in the resolution, and
  • (d) inform owners about the expenditure of the money collected.
  • (4.1) A strata corporation may, by bylaw or by a resolution approving a special levy, establish a rate of interest, not to exceed the rate set out in the regulations, to be paid if an owner is late in paying the owner’s strata lot’s share of the special levy.
  • (4.2) The interest payable on a late payment of a special levy in accordance with a bylaw or resolution referred to in subsection (4.1) is not a fine, and forms part of the special levy for the purposes of section 116.
  • (5) If the money collected exceeds the amount required, or for any other reason is not fully used for the purpose set out in the resolution, the strata corporation must pay to each owner of a strata lot the portion of the unused amount of the special levy that is proportional to the contribution made to the special levy in respect of that strata lot.
  • (6) Despite subsection (5), if no owner is entitled to receive more than $100 in total under subsection (5), the strata corporation may deposit the excess in the contingency reserve fund.
  • (7) In subsections (4) and (5), “money collected” means the money collected on a special levy and includes any interest or income earned on that money.

1998-43-108, effective July 1, 2000 (B.C. Reg. 43/2000); 2000-26-61; 2009-17-17, effective December 11, 2009 (B.C. Reg. 312/2009); 2016-5-44, Sch. 6; 2022-41-13, effective November 24, 2022.

REGULATIONS

The Strata Property Regulation, B.C. Reg. 43/2000, is included at chapter 59 (Strata Property Regulations).

Limited Common Property or Types of Strata Lots: Section 108(2)(b)

See s. 6.4(3) of the Strata Property Regulation for the formula for sharing special levies for limited common property or types of strata lots.

Some But Not All Strata Lots: Section 108(2)(b)

See s. 6.5 of the Strata Property Regulation for the formula for sharing special levies for some but not all strata lots.

Limited Common Property or Types of Strata Lots in Sections

See s. 11.2(3) of the Strata Property Regulation for the formula for sharing special levies for limited common property in sections or types of strata lots in sections.

Some But Not All Strata Lots in Sections: Section 108(2)(b)

See s. 11.3(1) of the Strata Property Regulation for the formula for sharing special levies for some but not all strata lots in sections.

Permitted Investments: Section 108(4)(b)(i)

See s. 6.11 of the Strata Property Regulation regarding the types of investments that must be made with funds raised by means of a special levy.

Late Payment of Special Levy: Section 108(4.1)

See s. 6.8(2) of the Strata Property Regulation regarding the maximum rate of interest that can be set for the late payment of a special levy.

CASE LAW

Special Levies Dispute: Lien Upheld and Sale of Strata Lot Ordered

In Strata Plan VR 2027 v. Dr. C.A. Whittington Inc., 2022 BCSC 1335 (Chambers), appeal dismissed as abandoned 2023 BCCA 362, the petitioner strata corporation imposed four special levies between 2019 and 2021. The first two levies were for roof-related repairs and replacements, and the respondent strata lot owner’s share was $7,132 and $21,114, respectively. The third levy covered costs incurred in builders lien proceedings and was approved by a vote of 16 to 2. The fourth levy aimed to fund an expansion of the builders lien proceedings and was approved unanimously.

The respondent paid only the first instalment of the first levy and failed to pay the remaining levies. The strata corporation registered a lien against the respondent’s strata lot and sought judgment to secure payment of the respondent’s share of the special levies and reasonable legal costs.

The court ruled mainly in favour of the strata corporation. It found that the special levies were imposed in accordance with the requirements of s. 108 of the Strata Property Act. In accordance with s. 116, the strata corporation was entitled to register a lien against the respondent’s strata lot for the unpaid special levies. The court determined that the strata corporation was entitled to judgment for special levies #1 and #2, which were imposed to fund physical repairs benefiting the respondent’s lot.

However, regarding special levies #3 and #4, which were imposed to cover legal expenses related to litigation in which the respondent had a position distinct from other owners, the court ordered a reference to the registrar to determine the extent to which these levies benefited the respondent. The court would consider further applications after receiving the registrar’s report and certificate to decide whether judgment should be granted for these levies.

Regarding an order for sale, the court noted that the machinery of lien registration and forced sale under the Strata Property Act exists to ensure fair sharing of collective burdens. The court considered an order for sale to be the appropriate remedy. The respondent’s arguments of bad faith and hardship were not upheld. The court found that the strata corporation had fulfilled its obligations, and the respondent could have prevented the lien being filed against the strata lot by paying the disputed amount into court (s. 114, s. 116(3)).

The court allowed the strata corporation to list the respondent’s strata lot for sale after 30 days from the determination of the amount owing and pronouncement of judgment, giving the respondent a fair opportunity to raise the necessary funds and avoid the sale.