Encyclopedia
Special levy
An extra charge a strata corporation can approve to pay for expenses.
For example: A buyer checks for upcoming special levies. (Illustration only, not a real deal.)
Official source: Strata Property Act (BC Laws)
Example only, not a real client. Say you own a strata office unit in a 1980s building, and the owners vote for a special levy to replace the elevators. Because you read the minutes before you bought and saw the elevator reports, you had already set money aside, and the levy does not disrupt your business.
What I’d tell a friend
Before buying a strata unit, read the minutes for signs of upcoming special levies, and make sure the contract says who pays a levy approved before closing.
Why it matters to you
A large levy can arrive soon after you buy, and it's usually owed by whoever owns the unit when it's approved. Check approved and proposed levies, the minutes and the depreciation report before removing subjects.
How to use it in your deal
Buyers should check the Form B and minutes for approved or proposed levies and negotiate who pays in the contract; under the Strata Property Act, the owner at the time the levy is approved is usually responsible unless otherwise agreed. Review the depreciation report to see what major repairs are coming and whether the reserve fund can cover them.
Owners should attend meetings where levies are voted on. Levies are usually shared by unit entitlement. Large levies can strain cash flow, so budget ahead. Tenants of strata units usually don't pay levies unless the lease says so. Ask the strata manager about likely future levies before buying. Some stratas let owners pay a levy in instalments, so check the resolution.
Lenders may ask about large levies before advancing funds, and a big one can delay a sale. If you're selling, disclose known projects early; buyers will find them in the minutes anyway. If your lease makes the tenant pay strata costs, read whether that includes levies for capital work.
Mistakes I see
Not checking minutes. Not negotiating levy payment. Ignoring the depreciation report.
In BC and Vancouver
The Strata Property Act sets voting and payment rules for special levies.
Official sources: Strata Property Act (BC Laws) · Strata housing (Government of BC)
What it is
A special levy is a one-time charge to owners, approved by a vote, to pay for something the strata’s regular budget and reserves do not cover, such as a major repair or replacement.
Each owner usually pays a share based on their unit entitlement, which can make the amount significant on a larger commercial unit.
In a purchase
The contract should say whether the buyer or the seller pays a levy approved before closing, and how levies proposed but not yet voted on are handled. Ask your lawyer to confirm the wording.
Look for repair projects mentioned in minutes, engineering reports or the depreciation report. Ask the strata manager whether any levies are being discussed.
Questions to ask before you sign
- Are levies approved or proposed?
- Who pays under the contract?
- What does the depreciation report show?
- How are levies shared?
Keep reading
Related terms: Contingency reserve fund (CRF), Form B
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.