Strata fees, arrears and special levies: what the Act allows

Strata fees

• Strata fees fund the operating fund and the contingency reserve fund and are calculated from the annual budget by unit entitlement unless the bylaws or a unanimous vote set a different formula for a type of lot.
• The budget is approved at the annual general meeting by majority vote; if it fails, the previous budget continues until a new one passes.
• Fees become owing on the schedule the bylaws set, usually monthly.

Late fees and interest

A strata may charge interest on late strata fees only if a bylaw provides for it, and the Regulation caps the rate at 10% per year compounded annually. Without such a bylaw, no interest can be charged. Fines for late payment are not permitted as a substitute — a late fee is interest, not a fine.

Liens under section 116

The strata corporation may register a lien against an owner's lot for unpaid strata fees, special levies, reconstruction costs, the strata's share of certain judgments, and interest under a bylaw. It must first give the owner at least two weeks' written notice demanding payment and stating the lien will be registered. Fines, costs of remedying a contravention and most other amounts cannot be liened; they are collected through the Civil Resolution Tribunal or court.

Special levies

• A special levy requires a resolution passed by a three-quarter vote at an annual or special general meeting, stating the purpose, the total amount, the method of calculation, each lot's share and the due date(s).
• Shares are by unit entitlement unless the resolution uses a different method approved by unanimous vote.
• Money raised must be spent for the stated purpose; surplus above the threshold in the Regulation is returned to owners.
• An owner who sells before the levy is due is liable for the portion payable before the sale unless the contract says otherwise; the Form B discloses approved levies.

What the treasurer should have on file

A per-unit ledger with every fee, levy, payment, interest charge and adjustment; the two-week lien notice with proof of delivery; the levy resolution and vote count; and reconciliation of the bank against the ledger. AryaPM's ledgers and statement runs keep those records, and portal charges for bookings and moves land directly in the strata's own account so nothing has to be reconciled from a manager's float.