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Stratas in BC › Finance Related

Interest and Overdue Accounts

Strata and Condominium corporations may charge interest on outstanding receivables. In BC, the maximum is 10%.

Any reasonable costs relating to the collection of overdue accounts, and the placement of caveats can be recovered from the owner. These costs can be charged against the owners unit.

Condominium and strata corporations claim against a unit ranks ahead of any mortgage. And therefore it is in the mortgagee’s interest to ensure outstanding condominium fees are paid. A corporation can start proceedings for foreclosure. This action would be at the unit owner’s expense.

What are Caveats and Estoppel (Certificate of Payment) Certificates?

Caveat means "let him beware." It notes on the title that someone else has a claim against the property. Generally, a sale of a unit cannot take place without a clear "estoppel" certificate. An estoppel certificate is simply a document that discloses the balances owing, including outstanding condominium fees, for the condominium unit.

Fines

If the strata has specified fines in its bylaws, (BC - and rules)  fines may be charged to the owner. These fines, cannot hold up the issuance of a Certificate of Payment or Estoppel.  In BC the maximum fine is $200 for a bylaw, and $50 for a rule, and may only be repeated every 7 days; the amount should be specified in the bylaws or rules.  In Alberta, the amount and frequency is determined by the bylaws, but must be reasonable.