Collecting unpaid strata fees: a step-by-step guide for BC councils
When one owner stops paying, every other owner covers the gap. Council has a duty to collect, and the Act provides an orderly ladder of steps. Using the same steps for everyone is what keeps it fair.
Last reviewed November 10, 2026, against the current Strata Property Act, Strata Property Regulation and Standard Bylaws on BC Laws.
The short answer
A BC strata collects arrears in stages: a reminder, then interest (if a bylaw sets a rate, up to 10% a year) and any late-payment fine allowed by the bylaws, then a written demand giving two weeks (section 112), then a lien on the strata lot for fees and levies (section 116), and finally the Civil Resolution Tribunal or court, including a court-ordered sale. Fines for late payment need the section 135 process and cannot be liened.
Why council must act
Owners must pay strata fees calculated under the Act (section 99), and Standard Bylaw 1 makes them due on or before the first day of the month. Council's standard of care (section 31) includes collecting what is owed. Leaving arrears for years is unfair to paying owners and can harm the strata's ability to pay its bills. Claims are also subject to limitation periods, generally two years, so delay can cost the strata its right to collect.
The tools available
| Tool | Requires | Source |
|---|---|---|
| Interest on late fees | A bylaw setting the rate, maximum 10% per year compounded annually | Section 107, Regulation 6.8 |
| Interest on late special levies | A bylaw, or the levy resolution itself | Section 108 |
| Fine for late payment | A bylaw making late payment a contravention, and the section 135 process each time | Sections 130 to 135 |
| Demand letter | Two weeks' written notice | Section 112 |
| Lien | Fees, levies and their interest only | Section 116 |
| Refusing a clear Form F | Automatic while money is owing | Section 115 |
| Tribunal or court claim | Demand letter first | Section 112 |
| Court-ordered sale | Lien registered | Section 117 |
The Standard Bylaws contain no interest rate, so a strata relying on them cannot charge interest until it passes a bylaw.
StrataMinutes can take this off your plate. Money decisions are the ones owners, buyers and the tribunal read most closely. Have the minutes prepared for you, with every motion and vote count recorded. Your first month is free.
A collection ladder
- Day 1 to 10: friendly reminder. Many late payments are a changed bank account.
- Day 30: second notice with a statement of account and the interest that applies.
- Day 45 to 60: formal demand under section 112. Written, dated, stating the amount, demanding payment within two weeks, and stating that a lien may be registered and action may be taken if it is not paid. Send a copy to any mortgagee that has asked for notice (section 113).
- After the two weeks: council decides by motion whether to register a lien, accept a payment plan, or both.
- Day 90 and beyond: lien registered, then a tribunal or court claim if still unpaid.
Adopt the ladder as a written policy by council motion so that no owner is treated differently.
Sample demand wording: The Owners, Strata Plan VIS 1234, demand payment of $1,842.50, being strata fees for March, April and May 2026 and interest to date, within two weeks of the date this notice is given. If payment is not made within that period, a lien may be registered against your strata lot under section 116 of the Strata Property Act and further action may be taken to collect the amount, and the costs of doing so may be added to the amount owing.
Applying payments correctly
How a payment is applied matters, because only fees and levies can be liened. If an owner pays an amount marked for strata fees, do not apply it to fines first and then claim the fees are unpaid. Keep the ledger in separate columns: fees, levies, interest, fines, other charges. Many disputes at the tribunal turn on a muddled ledger.
Payment plans
"Arrangements satisfactory to the strata corporation" prevent a lien and allow a Form F to issue (sections 115 and 116). A plan should be in writing: the amount, the instalments, the dates, that current fees must also be paid on time, and that the strata may proceed if a payment is missed. Approve it by motion, by lot number.
Late fees and fines
A flat "late fee" is, in law, a fine. It needs a bylaw, cannot exceed the bylaw's maximum (and the Regulation's cap of $200 per contravention), and each time requires a complaint, written particulars and an opportunity to answer under section 135. Interest under a bylaw is simpler, is expressly "not a fine", and can be liened. Most stratas rely on interest for that reason. See strata fines.
Tribunal and court
The Civil Resolution Tribunal hears strata claims for money, and its orders can be enforced through the courts. A strata does not need a 3/4 vote to start a tribunal claim, but check the tribunal's current rules. To sue in court as representative of the owners, the strata needs authorization by a 3/4 vote (section 171), except for a Small Claims proceeding to collect money owing where the strata has a bylaw dispensing with that requirement. A court application for sale of the lot under section 117 needs a lawyer.
Privacy and the minutes
Arrears are personal information. Report totals and the number of lots in arrears. Where a motion concerns one lot, use the strata lot number. Do not post names or discuss an owner's reasons in an open meeting. See privacy and PIPA.
Questions councils and owners ask
Can a BC strata charge interest on late strata fees?
Only if a bylaw sets the rate, which cannot exceed 10% per year compounded annually.
What must a strata do before registering a lien?
Give the owner at least two weeks' written notice demanding payment and stating that a lien may be registered.
Can the strata cut off amenities for non-payment?
The Act allows denial of a recreational facility only for contravening a bylaw or rule relating to that facility. Arrears alone do not qualify.
Is there a deadline for collecting arrears?
Limitation periods apply, generally two years, so council should not let arrears sit.
Can a strata sell an owner's unit for arrears?
Only by court order under section 117, after a lien is registered and the owner is given time to pay.
A collection policy only works if decisions are recorded
StrataMinutes prepares minutes that record each arrears decision by lot number, date and motion, keeping personal circumstances out of the record.
Free for 30 days, then $29 a month. Cancel anytime.
For a 30-lot strata, that is under $1 a lot each month. Have the strata pay: free council approval kit.
This page is general information for BC strata corporations, not legal advice. Your strata's own filed bylaws may differ from the Standard Bylaws. See the current text of the Strata Property Act and the Strata Property Regulation on BC Laws.
Related guides
Strata Liens
Withholding Strata Fees
Strata Fees
Form F Certificate
Strata Fines
Voting While in Arrears