What is a special levy, and how do I spot one coming?
A special levy is a one-time charge a strata votes to approve on top of regular fees, usually to cover a repair the contingency reserve fund can't. It needs a 3/4 vote at a general meeting to pass. The clearest sign one is coming: a depreciation report flagging a big repair while the reserve fund sits short of what that repair will cost.
How is a special levy different from a strata fee or the reserve fund?
Monthly strata fees cover day-to-day operating costs: insurance, landscaping, management, utilities. Part of that fee also feeds the contingency reserve fund (CRF), which pays for irregular capital repairs, a new roof, elevator replacement, parkade waterproofing, without billing owners each time something big comes up.
A special levy shows up when the CRF doesn't have enough for a repair the strata needs to make, whether that repair is a sudden emergency or one the strata saw coming and simply didn't save enough for.
How many owners have to agree before a levy passes?
A 3/4 vote of the ballots cast at an annual or special general meeting, under the Strata Property Act. That's 75% of votes actually cast, not 75% of every owner in the building, so a low turnout meeting can pass a levy with fewer owners than you'd think.
If the strata is charging owners anything other than by unit entitlement, the same method used for regular strata fees, it needs a unanimous vote instead. And since a 2013 amendment, if a levy is for urgent safety or damage-prevention repairs and gets majority support but falls short of 3/4, the strata can ask the BC Supreme Court to approve it anyway.
How much warning do owners actually get?
At least 2 weeks' written notice of the meeting where the vote happens. The resolution itself has to spell out the purpose of the levy, the total amount, how each owner's share is calculated, the dollar amount each unit owes, and the payment deadline or instalment dates.
So once notice goes out, you already know your exact number. Most buyers miss what happens before that notice: a strata council can spend months, sometimes over a year, discussing a repair in council minutes before it ever calls the vote.
What actually tips a strata into needing one?
The depreciation report is the biggest tell. It lists the building's major components, roof, building envelope, elevators, boiler, parkade membrane, and roughly when each one needs work. If a big-ticket item is coming due soon and the CRF isn't funded to cover it, a levy is close to inevitable.
The reserve contribution rate matters too. Since November 1, 2023, every strata corporation in BC has to put at least 10% of its operating budget into the CRF every year, regardless of how much is already saved. If a strata has been contributing at or near that floor for years while its building ages, the reserve is probably thinner than the fee schedule suggests.
Unusually low strata fees for an older building are also worth a second look. Sometimes that means a genuinely well-run strata. Often it means the strata has underfunded the reserve to keep monthly costs down, and the bill arrives later as a levy instead of a fee increase.
None of these alone proves a levy is coming. A depreciation report flagging near-term work next to a reserve barely meeting the legal minimum is the combination I'd flag to a client before they write an offer.
If a levy gets approved right before I buy, do I pay it or does the seller?
The Strata Property Act splits it by due date, not by who owned the unit when the vote happened. The owner immediately before the sale closes owes whatever instalment is due before that date. The owner immediately after, you, owes whatever is due on or after it.
That's the statutory default. In practice, the standard BC contract of purchase and sale often has the seller pay off an approved levy in full before completion, but that's a negotiated term, not the law itself. Confirm in writing who's covering what before you remove subjects, and check the Form B: it has to disclose any approved special levy and how much of it is still outstanding.
My honest read, after walking clients through this stack repeatedly: the depreciation report's funding section is where a coming levy shows up first, often a year or more before the vote. The Form B only tells you about a levy the strata has already approved.
Frequently asked questions
Is a special levy the same thing as a strata fee increase?
No. A fee increase is a change to the ongoing operating budget, approved by majority vote as part of the annual budget. A special levy is a one-time charge outside the regular budget, and it needs a 3/4 vote to pass.
How much notice do owners get before a special levy vote?
At least 2 weeks under the Strata Property Act. The repair itself is often discussed in council minutes for months before the strata calls the actual vote.
Can I refuse to pay a special levy if I voted against it?
No. Once 3/4 of the votes cast approve it, every owner owes their share, regardless of how they voted.
Does the Form B show an approved special levy?
Yes. Form B has to disclose any approved special levy and how much of it is still outstanding as of the date it's issued.
Who pays if the unit sells before the levy is fully paid off?
By default, whoever owns the unit when each instalment is due, under section 109 of the Strata Property Act. Purchase contracts frequently assign it differently, so get it in writing before you remove subjects.
Barton Lui is a REALTOR® with Real Broker in Vancouver. He works mostly with first-time buyers across Metro Vancouver and speaks English, Cantonese and Mandarin.
Reading strata documents before you write an offer? See what strata documents to read before buying in BC and what a subject-to-financing clause protects you from, or book a consultation.
Reach him at 604-715-5568 or barton@bartonrealtor.com.
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