Collections by Strata Corporations (22:IX) - Revision history

LSLAP at 19:46, 13 October 2025

2025-10-13T19:46:03Z

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LSLAP at 18:37, 29 September 2025

2025-09-29T18:37:21Z

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	A strata corporation can commence an action in court for the amounts in the same methods as a Certificate of Lien, in addition to the CRT. A ¾ vote resolution is not required to commence proceedings under the CRT.		A strata corporation can commence an action in court for the amounts in the same methods as a Certificate of Lien, in addition to the CRT. A ¾ vote resolution is not required to commence proceedings under the CRT.

	For each non-lienable amount, a strata corporation must have the authority under the bylaws or ''SPA'' to charge it to the account of the strata lot owner and they must ensure they comply with notice provisions under section 135 of the ''SPA''. The strata corporation must also have a valid and enforceable bylaw or rule to create the debt, such as a “user fee” for the use of common property and common assets that is objectively foreseeable, as was the case in [https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc1252/2011bcsc1252.html ''The Owners, Strata Plan LMS 3883 v De Vuyst'', 2011 BCSC 1252].		For each non-lienable amount, a strata corporation must have the authority under the bylaws or ''SPA'' to charge it to the account of the strata lot owner and they must ensure they comply with notice provisions under section 135 of the ''SPA''. The strata corporation must also have a valid and enforceable bylaw or rule to create the debt, such as a “user fee” for the use of common property and common assets that is objectively foreseeable, as was the case in ''[https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc1252/2011bcsc1252.html The Owners, Strata Plan LMS 3883 v De Vuyst]'', 2011 BCSC 1252.

	== D. Certificate of Payment ==		== D. Certificate of Payment ==
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	A mortgagee can commence foreclosure proceedings against a strata lot owner that owes money to the strata lot and to the mortgagee on title. If a Certificate of Lien is registered by the strata corporation to a strata lot, the strata corporation gets named as a respondent in the mortgagee’s foreclosure proceedings. The money owing under the Strata corporation’s Certificate of Lien has priority over the mortgage (''SPA'', s 116).		A mortgagee can commence foreclosure proceedings against a strata lot owner that owes money to the strata lot and to the mortgagee on title. If a Certificate of Lien is registered by the strata corporation to a strata lot, the strata corporation gets named as a respondent in the mortgagee’s foreclosure proceedings. The money owing under the Strata corporation’s Certificate of Lien has priority over the mortgage (''SPA'', s 116).

	It used to be the case that a strata corporation was required to give the mortgagee a Certificate of Payment when a foreclosed strata lot was sold. However, if there was money owed to the strata over and above the amount owed under a Certificate of Lien, strata corporations would refuse to provide a Certificate of Payment. As a result, the Land Title Office would refuse to register the transfer of the strata lot without a Certificate of Payment. [https://www.canlii.org/en/bc/bcsc/doc/2005/2005bcsc51/2005bcsc51.html ''Peoples Trust Co. v Meadowlark Estates Ltd.'', 2005 BCSC 51] resolved this dilemma by deciding that a change of ownership arising from a foreclosure proceeding does not trigger the requirement under the ''SPA'' to file a Certificate of Payment. This means that if a Certificate of Lien is not filed by the strata corporation at the time of the sale, they lost their opportunity to claim for any money owed to it.		It used to be the case that a strata corporation was required to give the mortgagee a Certificate of Payment when a foreclosed strata lot was sold. However, if there was money owed to the strata over and above the amount owed under a Certificate of Lien, strata corporations would refuse to provide a Certificate of Payment. As a result, the Land Title Office would refuse to register the transfer of the strata lot without a Certificate of Payment. ''[https://www.canlii.org/en/bc/bcsc/doc/2005/2005bcsc51/2005bcsc51.html Peoples Trust Co. v Meadowlark Estates Ltd.]'', 2005 BCSC 51 resolved this dilemma by deciding that a change of ownership arising from a foreclosure proceeding does not trigger the requirement under the ''SPA'' to file a Certificate of Payment. This means that if a Certificate of Lien is not filed by the strata corporation at the time of the sale, they lost their opportunity to claim for any money owed to it.

	== F. Principles of Allocation of Payments ==		== F. Principles of Allocation of Payments ==
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	If there is no bylaw dealing with allocation of payments from owners, the strata corporation will apply the payment as directed by the owner.		If there is no bylaw dealing with allocation of payments from owners, the strata corporation will apply the payment as directed by the owner.

	Many strata corporations have adopted bylaws stating that payments will be allocated to fines first. This is allowed, per [https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc1811/2011bcsc1811.html ''Chorney v The Owners, Strata Plan VIS 770'', 2011 BCSC 1811], as long as the bylaw does not prevent an owner from contesting or refusing to pay fines while continuing to pay strata fees. A bylaw that allocates payments cannot override an owner’s express of implied direction to apply payments to strata fees and special levies.		Many strata corporations have adopted bylaws stating that payments will be allocated to fines first. This is allowed, per ''[https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc1811/2011bcsc1811.html Chorney v The Owners, Strata Plan VIS 770]'', 2011 BCSC 1811, as long as the bylaw does not prevent an owner from contesting or refusing to pay fines while continuing to pay strata fees. A bylaw that allocates payments cannot override an owner’s express of implied direction to apply payments to strata fees and special levies.


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LSLAP at 23:42, 3 August 2024

2024-08-03T23:42:47Z

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LSLAP at 20:53, 31 July 2024

2024-07-31T20:53:25Z

Clicklaw Editor: /* F. Principles of Allocation of Payments */

2023-08-22T18:44:22Z

F. Principles of Allocation of Payments

← Older revision		Revision as of 18:44, 22 August 2023
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	Many strata corporations have adopted bylaws stating that payments will be allocated to fines first. This is allowed, per [https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc1811/2011bcsc1811.html ''Chorney v The Owners, Strata Plan VIS 770'', 2011 BCSC 1811], as long as the bylaw does not prevent an owner from contesting or refusing to pay fines while continuing to pay strata fees. A bylaw that allocates payments cannot override an owner’s express of implied direction to apply payments to strata fees and special levies.		Many strata corporations have adopted bylaws stating that payments will be allocated to fines first. This is allowed, per [https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc1811/2011bcsc1811.html ''Chorney v The Owners, Strata Plan VIS 770'', 2011 BCSC 1811], as long as the bylaw does not prevent an owner from contesting or refusing to pay fines while continuing to pay strata fees. A bylaw that allocates payments cannot override an owner’s express of implied direction to apply payments to strata fees and special levies.


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LSLAP: Added the text

2023-08-20T02:15:31Z

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LSLAP at 01:27, 20 August 2023

2023-08-20T01:27:51Z

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	{{LSLAP Manual TOC\|expanded = strata}}		{{LSLAP Manual TOC\|expanded = strata}}

			== A. When Strata Lot Owners are Indebted to the Strata Corporation ==

			=== 1. How Strata Lot Owners Become Indebted to the Strata Corporation ===

			A strata lot owner may become indebted to the strata corporation in several ways, including:

			* The owner may be in arrears of strata fees or special levies;
			* The owner could owe interest on outstanding strata fees;
			* The owner may owe money for fines or costs of remedying if they have contravened a bylaw.

			=== 2. Treatment of Debt Owed to a Strata Corporation ===

			==== a) Methods of Debt Collection by a Strata Corporation ====

			A strata corporation can collect a dent by a:

			# Forced sale proceeding;
			# Arbitration proceeding; or
			# Action in debt.

			Owners and strata corporations can also resolve disputes over debts at the Civil Resolution Tribunal.

			==== b) When the Strata Corporation is a Respondent ====

			A strata corporation can also be named as a respondent in a foreclosure proceeding commenced by a mortgagee, during which the strata corporation can ensure the court makes an order to pay certain amounts that may be owing to the strata corporation.

			== B. Forced Sale Proceedings ==

			Forced sale proceedings can only be used as an action taken to enforce a Certificate of Lien (Form G of the ''SPR''). A strata corporation can only register a Certificate of Lien against an owner’s strata lot if the owner fails to pay any of the following (''SPA'', s 116(1)):

			# Strata fees;
			# A special levy;
			# A reimbursement of the cost of work referred to in s 85 of the ''SPA'';
			# The strata lot’s share of a judgement against the strata corporation.

			== C. Court and Arbitration Proceedings ==










			1. Amounts Owing Under the Certificate of Lien
			Instead of proceeding directly with forced sale proceedings, the strata corporation may
			commence an action in debt in the Provincial Court (if the amount claimed is less than
			$35,000), Supreme Court, or initiate arbitration proceedings. For any of these options, the
			commencement must be authorized by a ¾ vote resolution in accordance with s 171. The
			commencement of a lawsuit in Provincial Court does not need a ¾ vote if the corporation
			has a bylaw that dispenses of that requirement. The limitation period for an action in debt
			is two years.

			Alternatively, such actions can be claimed at the Civil Resolution Tribunal, which has no
			monetary limit.
			2. Collection of Non-Lienable Amounts
			An owner can be indebted to a strata corporation for several items that cannot be included
			in a Certificate of Lien, including:
			1. Fines;
			2. Costs of remedying bylaw contraventions;
			3. Insurance deductibles;
			4. Administrative fees;
			5. User fees;
			6. Move-in or move-out fees;
			7. Claims for damage to property caused by an owner or a person an owner is
			responsible for;
			8. Interest charged on debts other than outstanding strata fees and special levies;
			9. Legal fees;
			10. NSF charges; and
			11. Other chargebacks.
			A strata corporation can commence an action in court for the amounts in the same methods
			as a Certificate of Lien, in addition to the CRT. A ¾ vote resolution is not required to
			commence proceedings under the CRT.
			For each non-lienable amount, a strata corporation must have the authority under the
			bylaws or SPA to charge is to the account of the strata lot owner and the must endure they
			comply with notice provisions under s 135 of the SPA. The strata corporation must also
			have a valid and enforceable bylaw or rule to create the debt, such as a “user fee” for the
			use of common property and common assets that is objectively foreseeable, as was the case
			in Strata Plan LMS 3883 v De Vuyst, 2011 BCSC 1252.
			D. Certificate of Payment
			When a strata lot is being transferred, a Certificate of Payment must be filed at the Land Title Office
			(SPA, s 256) and must be provided by the strata corporation within one week of the request of the
			purchaser if not money is owing to the strata corporation or if money is owing but certain arrangements
			have been made to pay or to dispute the amount owing (s 115(1)). The strata corporation can charge a
			fee no greater than $15 for the Certificate of Payment (s 115(3)).
			A strata corporation can refuse to provide the Certificate of Payment until all of the outstanding arrears
			are paid or satisfactory arrangements for payments have been made. Often, the owner will pay to
			negotiate a settlement with the strata corporation. If court proceedings have commenced to resolve any
			disputed fines or costs, the owner can pay the strata corporation “in trust” until a dispute is resolved,
			requiring the strata corporation to then provide a Certificate of Payment (s 115(1)(b)(i)). If no legal
			proceedings have started, a strata lot owner disputing fines or costs of remedying a bylaw contravention
			has no option other than payment.
			E. Foreclosure Proceedings
			A mortgagee can commence foreclosure proceedings against a strata lot owner that owes money to the
			strata lot and to the mortgagee on title. If a Certificate of Lien is registered by the strata corporation to
			a strata lot, the strata corporation gets named as a respondent in the mortgagee’s foreclosure
			proceedings. The money owing under the Strata corporation’s Certificate of Lien has priority over the
			mortgage (SPA, s 116).

			It used to be the case that a strata corporation was required to give the mortgagee a Certificate of
			Payment when a foreclosed strata lot was sold. However, if there was money owed to the strata over
			and above the amount owed under a Certificate of Lien, strata corporations would refuse to provide a
			Certificate of Payment. As a result, the Land Title Office would refuse to register the transfer of the
			strata lot without a Certificate of Payment. Peoples Trust Co. v Meadowlark Estates Ltd., 2005 BCSC
			51 resolved this dilemma by deciding that a change of ownership arising from a foreclosure proceeding
			does not trigger the requirement under the PSA to file a Certificate of Payment. This means that if a
			Certificate of Lien is not filed by the strata corporation at the time of the sale, they lost their opportunity
			to claim for any money owed to it.
			F. Principles of Allocation of Payments
			If there is no bylaw dealing with allocation of payments from owners, the strata corporation will apply
			the payment as directed by the owner.
			Many strata corporations have adopted bylaws stating that payments will be allocated to fines first. This
			is allowed, per Chorney v Strata Plan VIS 770, 2011 BCSC 1811, as long as the bylaw does not prevent
			an owner from contesting or refusing to pay fines while continuing to pay strata fees. A bylaw that
			allocates payments cannot override an owner’s express of implied direction to apply payments to strata
			fees and special levies.

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← Older revision		Revision as of 20:53, 31 July 2024
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	# Strata fees;		# Strata fees;
	# A special levy;		# A special levy;
	# A reimbursement of the cost of work referred to in s 85 of the ''SPA'';		# A reimbursement of the cost of work referred to in section 85 of the ''SPA''; and
	# The strata lot’s share of a judgement against the strata corporation.		# The strata lot’s share of a judgement against the strata corporation.

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	=== 1. Amounts Owing Under the Certificate of Lien ===		=== 1. Amounts Owing Under the Certificate of Lien ===

	Instead of proceeding directly with forced sale proceedings, the strata corporation may commence an action in debt in the Provincial Court (if the amount claimed is less than $35,000), Supreme Court, or initiate arbitration proceedings. For any of these options, the commencement must be authorized by a ¾ vote resolution in accordance with s 171. The commencement of a lawsuit in Provincial Court does not need a ¾ vote if the corporation has a bylaw that dispenses of that requirement. The limitation period for an action in debt is two years.		Instead of proceeding directly with forced sale proceedings, the strata corporation may commence an action in debt in the Provincial Court (if the amount claimed is less than $35,000), Supreme Court, or initiate arbitration proceedings. For any of these options, the commencement must be authorized by a ¾ vote resolution in accordance with section 171. The commencement of a lawsuit in Provincial Court does not need a ¾ vote if the corporation has a bylaw that dispenses of that requirement. The limitation period for an action in debt is two years.

	Alternatively, such actions can be claimed at the Civil Resolution Tribunal, which has no monetary limit.		Alternatively, such actions can be claimed at the Civil Resolution Tribunal, which has no monetary limit.
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	A strata corporation can commence an action in court for the amounts in the same methods as a Certificate of Lien, in addition to the CRT. A ¾ vote resolution is not required to commence proceedings under the CRT.		A strata corporation can commence an action in court for the amounts in the same methods as a Certificate of Lien, in addition to the CRT. A ¾ vote resolution is not required to commence proceedings under the CRT.

	For each non-lienable amount, a strata corporation must have the authority under the bylaws or ''SPA'' to charge is to the account of the strata lot owner and ~~the~~ must ~~endure~~ they comply with notice provisions under s 135 of the ''SPA''. The strata corporation must also have a valid and enforceable bylaw or rule to create the debt, such as a “user fee” for the use of common property and common assets that is objectively foreseeable, as was the case in [https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc1252/2011bcsc1252.html ''The Owners, Strata Plan LMS 3883 v De Vuyst'', 2011 BCSC 1252].		For each non-lienable amount, a strata corporation must have the authority under the bylaws or ''SPA'' to charge it to the account of the strata lot owner and they must ensure they comply with notice provisions under section 135 of the ''SPA''. The strata corporation must also have a valid and enforceable bylaw or rule to create the debt, such as a “user fee” for the use of common property and common assets that is objectively foreseeable, as was the case in [https://www.canlii.org/en/bc/bcsc/doc/2011/2011bcsc1252/2011bcsc1252.html ''The Owners, Strata Plan LMS 3883 v De Vuyst'', 2011 BCSC 1252].

	== D. Certificate of Payment ==		== D. Certificate of Payment ==
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	A mortgagee can commence foreclosure proceedings against a strata lot owner that owes money to the strata lot and to the mortgagee on title. If a Certificate of Lien is registered by the strata corporation to a strata lot, the strata corporation gets named as a respondent in the mortgagee’s foreclosure proceedings. The money owing under the Strata corporation’s Certificate of Lien has priority over the mortgage (''SPA'', s 116).		A mortgagee can commence foreclosure proceedings against a strata lot owner that owes money to the strata lot and to the mortgagee on title. If a Certificate of Lien is registered by the strata corporation to a strata lot, the strata corporation gets named as a respondent in the mortgagee’s foreclosure proceedings. The money owing under the Strata corporation’s Certificate of Lien has priority over the mortgage (''SPA'', s 116).

	It used to be the case that a strata corporation was required to give the mortgagee a Certificate of Payment when a foreclosed strata lot was sold. However, if there was money owed to the strata over and above the amount owed under a Certificate of Lien, strata corporations would refuse to provide a Certificate of Payment. As a result, the Land Title Office would refuse to register the transfer of the strata lot without a Certificate of Payment. [https://www.canlii.org/en/bc/bcsc/doc/2005/2005bcsc51/2005bcsc51.html ''Peoples Trust Co. v Meadowlark Estates Ltd.'', 2005 BCSC 51] resolved this dilemma by deciding that a change of ownership arising from a foreclosure proceeding does not trigger the requirement under the ~~PSA~~ to file a Certificate of Payment. This means that if a Certificate of Lien is not filed by the strata corporation at the time of the sale, they lost their opportunity to claim for any money owed to it.		It used to be the case that a strata corporation was required to give the mortgagee a Certificate of Payment when a foreclosed strata lot was sold. However, if there was money owed to the strata over and above the amount owed under a Certificate of Lien, strata corporations would refuse to provide a Certificate of Payment. As a result, the Land Title Office would refuse to register the transfer of the strata lot without a Certificate of Payment. [https://www.canlii.org/en/bc/bcsc/doc/2005/2005bcsc51/2005bcsc51.html ''Peoples Trust Co. v Meadowlark Estates Ltd.'', 2005 BCSC 51] resolved this dilemma by deciding that a change of ownership arising from a foreclosure proceeding does not trigger the requirement under the ''SPA'' to file a Certificate of Payment. This means that if a Certificate of Lien is not filed by the strata corporation at the time of the sale, they lost their opportunity to claim for any money owed to it.

	== F. Principles of Allocation of Payments ==		== F. Principles of Allocation of Payments ==