Collections by Strata Corporations (22:IX): Difference between revisions
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Collections by Strata Corporations (22:IX) (view source)
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 | # 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 | 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 | 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 | 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 == | ||