A special levy is an additional charge imposed on strata lot owners — on top of regular monthly strata fees — to fund capital expenditures that the contingency reserve fund cannot cover. Special levies can arise suddenly: a failed roof, an elevator replacement, seismic upgrades, or remediation of building envelope defects. For owners in British Columbia strata corporations, a special levy can mean an unexpected bill of $5,000, $50,000, or more, with little warning. Under the Strata Property Act (SPA), special levies require a 3/4 vote resolution at a general meeting. But the process around giving notice, calculating proportionate shares, and understanding your obligations as an owner — and your rights before buying a strata unit — is complex and consequential.
What is a Special Levy Notice?
A strata special levy is a one-time or periodic charge imposed on strata lot owners, proportionate to their unit entitlement, to fund a specific capital expenditure not covered by the contingency reserve fund (CRF). Under s. 108 of the BC Strata Property Act (SPA), a special levy requires a resolution approved by 3/4 of all votes at an annual or special general meeting. The special levy notice must be provided with the meeting notice and must specify the purpose, total amount, the basis for allocation among lots, and the date(s) by which payment is required. A buyer of a strata lot is responsible for any special levy approved at a meeting held before the sale completes — even if they were not the owner when it was approved.
Red flags to watch for
When buying a strata lot, you must request a Form B (Information Certificate) under s. 59 SPA. Sellers and strata corporations must disclose any special levy approved but not yet due, and any known pending repairs that may require a special levy. A status certificate that is silent on upcoming major repairs — when the depreciation report indicates otherwise — warrants further inquiry.
Under the Strata Property Regulations, strata corporations must obtain a depreciation report (capital reserve study) every three years. Strata corporations can pass a 3/4 vote to waive this requirement. An outdated or waived depreciation report means you have no reliable picture of upcoming capital expenditure requirements and special levy risk.
If the CRF is significantly underfunded relative to the depreciation report's recommendations, the strata corporation is likely to require special levies for upcoming capital projects. A status certificate showing a low CRF in a building with aging infrastructure is a meaningful financial risk signal.
Under s. 108 SPA, the special levy resolution must specify how the levy is allocated — normally by unit entitlement. A notice that is vague about allocation creates a basis for challenge by owners who believe their share has been incorrectly calculated.
Large special levies may be structured as a single lump-sum payment or as instalments. A resolution requiring full payment immediately may cause financial hardship for owners on fixed incomes or with mortgages. A well-governed strata corporation typically considers instalment options for larger levies.
Your legal rights
BC strata owners are protected by the Strata Property Act, SBC 1998, c. 43 (SPA) and the Strata Property Regulation (BC Reg 43/2000). Key protections include: the requirement for a 3/4 vote to approve a special levy (s. 108 SPA); the right to request a Form B (Information Certificate) containing financial disclosure including all approved levies (s. 59 SPA); the right to obtain depreciation reports (s. 94 SPA and Regulation); the right to dispute strata decisions through the Civil Resolution Tribunal (CRT) or BC Supreme Court; and the Residential Tenancy Act protections if you lease your strata lot. The BC Financial Consumer Services Authority publishes guidance on strata governance. The Condominium Home Owners Association of BC (CHOA) provides education and dispute resolution assistance.
Questions to ask before you sign
- 1Has any special levy been approved but not yet paid — and is this disclosed on the Form B Information Certificate?
- 2When was the depreciation report last prepared, and what major capital expenditures does it project in the next 5–10 years?
- 3What is the current balance of the contingency reserve fund, and is it funded at the level recommended by the depreciation report?
- 4Is the strata corporation currently aware of any building defects or deferred maintenance that may require a special levy?
- 5If a special levy is approved, how is the amount allocated among strata lots — and how is my lot entitlement calculated?
- 6Are instalment payment options available for large special levies?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.