Strata fees as binding as taxes


Sunday, October 26th, 2008

Tony Gioventu
Province

Dear Condo Smarts: I received a letter from our property manager advising that if I don’t pay my outstanding balance of fees and special levies, the strata corporation is going to hand over the file to a lawyer and my home is going to be sold to collect the funds. I admit, I am in arrears since I lost my job in May, but can the strata actually sell my home?

— AV

To all Condo Owners: Your strata fees and special levies that are duly authorized are no different from property taxes and income taxes. You must pay them — and on the prescribed time scheduled. Bottom line: If you don’t pay your fees, the rest of the strata is carrying your obligations. Strata corporations have an obligation to collect the fees, and the legislation gives them excellent support to ensure delinquent fees are easily recovered. I followed up with AV’s strata and discovered he owes $12,094 in back fees and a roofing levy. The strata has been more than cooperative in that it has not even filed a lien for the amounts.

This is a serious problem for the strata corporation. If they do not file liens, or proceed with further collection actions, the strata could find it difficult to collect the funds if the property ends up in a forced tax sale or bank foreclosure.

To ensure the strata can collect these funds, they must file a lien against the title once they have issued a proper demand notice to the owner. If the owner continues to decline payment, the Act permits the strata corporation to proceed to the Supreme Court to seek an Order for Sale of the strata lot.

So, yes, the strata corporation can seek a court-ordered sale of AV’s strata lot. My advice to stratas is not to wait till the receivables are $10,000 and six months in arrears. Take action before you risk your strata’s ability to collect the funds.

Seminars on Council Operations, General Meetings and Collections are running in October and November. Go to www.choa.bc.ca for dates.

Tony Giventu is executive director of the Condominium Home Owners’ Association Email: [email protected]

© The Vancouver Province 2008

 



Comments are closed.