Collecting Strata Fee Arrears in BC

Unpaid strata fees are one of the most common financial problems a self-managed council faces. Arrears drain the operating fund, delay maintenance, and shift the burden onto owners who pay on time. The Strata Property Act gives strata corporations unusually strong collection tools — including a lien that outranks most mortgages — but those tools only work if the steps are followed in order and documented.

Why arrears deserve a written process

A budget is only as good as the money that actually arrives. If a meaningful share of fees goes uncollected, the strata either defers work or dips into reserves it will need later. That is why arrears management belongs alongside your annual budget process and your contingency reserve fund planning, not in an ad-hoc email thread.

Councils that handle collections consistently — same reminder schedule, same wording, same escalation points for every owner — are far less exposed to claims of unfair treatment than councils that improvise. Recording each step in one place (a shared ledger and correspondence log in a tool such as ManageStrata works well) makes the file defensible if it ever reaches the Civil Resolution Tribunal or court.

What a strata lien can — and cannot — secure

Under section 116 of the Act, a strata corporation may register a Certificate of Lien against an owner's strata lot if the owner fails to pay:

• strata fees
• a special levy
• reimbursement of the cost of work the strata did on a strata lot under section 85 after an owner failed to comply with a work order
• the strata lot's share of a judgment against the strata corporation

Section 116(3) sets out when a lien is not available: where the amount has been paid into court or to the strata in trust under section 114, where arrangements satisfactory to the strata corporation have been made, or where the amount owing is a fine or the costs of remedying a contravention. That last exclusion matters: bylaw fines are collectible, but not by lien. Fines also carry their own mandatory procedure — written particulars of the complaint, a reasonable opportunity to respond including a hearing if requested, and written notice of the decision — and a fine imposed without those steps is void.

The step almost everyone gets wrong: the notice

Section 112 requires at least 2 weeks' written notice demanding payment before the strata registers a lien, and separately before suing, beginning arbitration, or having a Civil Resolution Tribunal initiating notice given. The notice must indicate that a lien may be registered (or that action may be taken) if payment is not made in that 2-week period.

A generic "your account is overdue" reminder does not satisfy this. Send a dated demand letter that states the amount owing, the deadline, and the specific consequence, and keep proof of delivery.

Registering the lien

The lien is created by registering Form G — Certificate of Lien in the land title office (Form G, Strata Property Regulation). Form G is signed by two council members — one is enough if the council consists of only one member — or by a strata manager if authorized by the strata corporation.

On registration, the lien secures the amount owing and, under section 116(5), ranks in priority to every other lien or registered charge, with three exceptions: to the extent the lien is for a strata lot's share of a judgment against the strata corporation, where the other charge is in favour of the Crown and is not a mortgage of land, and where the other charge is made under the Builders Lien Act.

Section 118 allows reasonable legal costs, land title and court registry fees, and other reasonable disbursements to be added to the amount owing under the certificate.

When the money is received, the strata must remove the lien within one week by registering an Acknowledgement of Payment (s.116(6)).

Questions councils actually ask

Can we charge a late fee on overdue strata fees?
BC has no statutory late fee. What is permitted is interest, and only where a bylaw establishing the schedule for paying strata fees sets a rate. Section 107 confirms that this interest is not a fine and forms part of the strata fees for lien purposes. The rate is capped by the Strata Property Regulation at 10% per annum, compounded annually. If your registered bylaws are silent on interest, you cannot charge it — check the bylaws filed in the land title office, not a bylaw draft someone circulated years ago.

What if the owner disputes the debt?
Section 114 lets an owner pay the disputed amount into court, or to the strata to hold in trust, once the matter is in court, in arbitration, or before the tribunal. The strata then holds the money in trust until the dispute is resolved and pays it to whichever party the decision identifies.

Do we have to go to court to get paid?
Usually not. Most arrears resolve at the demand-letter or lien stage, partly because a transfer of the strata lot cannot be registered without a current Certificate of Payment (Form F), which turns on whether the owner owes nothing, the money is secured under section 114, or satisfactory payment arrangements exist (Part 6 of the Act).

Escalation: forced sale

Section 117 allows a strata corporation that has registered a Certificate of Lien to apply to the Supreme Court for an order for sale of the strata lot. If the strata already has a judgment, the court may order sale after considering all the circumstances; if not, the court may try the issue, enter judgment, and then consider a sale order. Any order must provide that if the amount owing is not paid within the time the order requires, the strata may sell the lot at a price and on terms approved by the court. This is a last resort and legal advice is essential before starting it.

Practical housekeeping

• Reconcile the arrears ledger monthly and report totals to council in the minutes.
• Apply the same escalation timeline to every account.
• Confirm what your own registered bylaws say about payment dates, interest and user fees before relying on them.
• If you are unsure what your bylaws, minutes or financials actually say, an AI document review tool such as SearchStrata can help you locate the relevant clauses quickly.
• Keep large repair obligations visible so arrears do not compound a funding gap — your depreciation report is the natural anchor for that.

This article is general information about BC strata law, not legal advice; verify against the current Strata Property Act and Regulation or consult a BC strata lawyer.