A strata special levy can cost thousands, and on a sale the question is who pays it. BC's Strata Property Act sets a default rule based on payment dates, but the contract can change the deal between buyer and seller. Here is how it works and what to check before you sign.
Special levies are how strata corporations pay for large projects their contingency fund cannot cover: a roof, a building envelope repair, new elevators. For an owner, a levy can be a significant bill.
When a strata unit is changing hands, the timing of a levy decides who owes it to the strata corporation. The contract decides who ultimately bears it between buyer and seller. Both need attention before subjects are removed.
How a special levy is approved
Under section 108 of the Strata Property Act, a strata corporation may raise money from the owners by a special levy. It must be approved by the owners at an annual or special general meeting:
- 3/4 vote if each strata lot's share is calculated in one of the standard ways the Act sets out, usually by unit entitlement.
- Unanimous vote if the strata uses another method that fairly divides the cost of that particular levy.
The resolution must state the purpose, the total amount, how each lot's share is calculated, the amount of each lot's share, and the date or dates by which it must be paid. That last detail is what matters on a sale.
The default rule when a strata lot is sold
Section 109 deals with a levy approved before a strata lot is conveyed to a buyer. The seller owes the strata corporation the portion of the levy that is payable before the date of conveyance. The buyer owes the portion payable on or after that date.
In the Act, a strata lot is conveyed when an application has been made to the land title office to register the transfer. In a typical residential sale, that is the completion date.
An illustration
As an example only: suppose a levy is approved in March, with three equal instalments due on 1 May, 1 August and 1 November. If the sale completes on 15 July, the default is that the seller owes the May instalment and the buyer owes the August and November instalments, because those fall due after conveyance.
If the whole levy is payable in a single instalment before completion, the default places it on the seller. If it is payable after completion, it falls on the buyer.
The contract can change the deal
Section 109 sets out who owes the strata corporation. Buyer and seller can still agree between themselves who will bear the cost, for example by a price reduction, a credit on the statement of adjustments, or a term that the seller pays the whole levy whatever its schedule. Check what your contract says about special levies, and read the wording carefully against the facts, including levies that are approved after the contract is signed but before completion.
The Act directs any unused levy money to be returned to the owner of each strata lot in proportion to the contributions made for that lot. A seller who paid a levy that is later partly refunded may want the contract to say who receives that refund.
Proposed levies: what the documents reveal
The hardest cases involve levies that are coming but not yet approved. The strata corporation must provide an Information Certificate (Form B) within one week of a request by an owner, a buyer, or a person they authorize. It must disclose, among other things:
- Any amount the owner must pay in the future for a special levy already approved, and when it is due.
- Any notice given for a resolution not yet voted on that requires a 3/4, 80% or unanimous vote.
- The amount in the contingency reserve fund, minus approved expenditures not yet taken from it.
- Any expected shortfall against the current year's budget.
The current budget and the most recent depreciation report, if any, must be attached. Minutes, engineering reports and correspondence often show a project being discussed long before a resolution is drafted. Our guide to strata documents to review before subject removal explains what to request and what to look for.
Completion: the Certificate of Payment and holdbacks
A transfer of a strata lot cannot be registered without a current Certificate of Payment (Form F). Section 256 says the registrar must not accept a conveyance without one, and section 115 says the strata must issue it within one week of a request if the owner owes no money to the strata, or if the amount claimed has been paid into court or in trust, or satisfactory arrangements have been made. A certificate is current for 60 days.
An unpaid special levy is also something the strata can register a lien for under section 116. That is why the seller's lawyer or notary will confirm the amounts owing and arrange for them to be paid from the sale proceeds where needed.
Where a large project is expected but not approved, buyers and sellers sometimes negotiate a holdback: part of the price kept in trust and released depending on whether a levy is approved, and for how much. A holdback needs careful drafting so both sides know exactly when and how the money is released. Our article on what your lawyer does before completion day covers the rest of the process.
Buying or selling a strata unit with a levy in the picture? Check the terms first
Our real estate lawyers can review the strata documents and the contract terms on special levies, prepare the adjustments, and handle the Certificate of Payment and completion.
Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.
Sources
- Strata Property Act, SBC 1998, c 43, ss 1(1), 59, 108, 109, 115, 116 and 256 — Strata Property Act, SBC 1998, c 43 (checked October 10, 2026)
- Strata Property Regulation, BC Reg 43/2000, Forms B and F — Strata Property Regulation, BC Reg 43/2000 (checked October 10, 2026)
General information about British Columbia law as at the date shown, not legal advice. Reading this article does not create a lawyer-client relationship. Please speak with a lawyer about your own circumstances.