Finances

July 1, 2026 Published by British Columbia Chapter - By Sonal Kaura

Strata Fees Or Strata Fines? Why The Difference Matters More Than You Think

From CCI BC Strata Connection Magazine, Spring/Summer 2026

Strata councils across British Columbia play an essential role in the financial oversight and management of their communities. However, one of the most common misunderstandings for strata councils is the difference between collecting strata fees versus strata fines. Although these charges may appear similar on an owner’s ledger, fees and fines serve different legal purposes, have different procedural rules for collection, and are subject to different limitation periods.

Mismanagement in the collection of fees or fines can be costly to a strata corporation. In some cases, a simple procedural oversight can jeopardize the strata corporation’s ability to collect money owing. This article sets out the practical distinctions between strata fees and strata fines and how to manage each type of charge effectively and lawfully.

Purpose of Fees & Fines

Strata fees are mandatory payments that represent each strata lot owner’s contribution toward the maintenance and management of shared common expenses as set out in the approved annual budget of the strata corporation.

These expenses include operating costs, such as the landscaping costs and garbage disposal costs, and contributions to the contingency reserve fund. Strata fees are imposed on each strata lot owner automatically, initially by way of the developer’s interim budget, and then as approved by the strata in its annual budget. Each owner’s strata fees are calculated based on the strata’s schedule of unit entitlement.

Strata fines, on the other hand, are financial penalties imposed by a strata corporation on strata lot owners for violating or breaching the strata corporation’s bylaws or rules. The purpose of these fines is deterrence rather than compensation. As strata fines are discretionary, they may only be imposed after the strata council follows the procedure set out in the Strata Property Act (the “Act”).

Collection of Strata Fees

Strata councils must notify strata lot owners of their new strata fees within two weeks of the annual budget being approved, typically by distributing copies of the meeting minutes. The Act provides strong mechanisms to ensure that strata fees are paid. Typically, strata councils provide owners with regular statements and reminders to pay strata fees. If a strata lot owner fails to pay the strata fees as required, a strata council can rely on the following enforcement tools:

1. Interest – If authorized by the bylaws, the strata council can charge interest of up to 10% per year, compounded annually, on late or unpaid strata fees.
2. Fine – A strata council can fine a strata lot owner for failing to pay strata fees in accordance with a bylaw. See more below regarding the required enforcement process before imposing a fine.
3. Lien – Pursuant to section 116 of the Act, a strata corporation can register a lien for unpaid strata fees against a strata lot. However, prior to registering a lien, a strata corporation must give the owner at least two weeks’ written notice demanding payment of the unpaid strata fees and indicating that a lien may be registered if payment is not made within that two week period. Registering a lien secures the debt owing to the strata and enables the strata corporation to pursue forced sale proceedings if necessary.
4. Restrict voting rights – If authorized by bylaw, a strata corporation can suspend an owner’s voting rights at annual or special general meetings for majority and 3/4 vote resolutions when they owe lienable amounts, such as unpaid strata fees. All owners are still entitled to vote on 80% or unanimous resolutions regardless of amounts owing.
5. Enforce payment by legal proceeding – A strata corporation can recover unpaid strata fees by either filing a claim with the BC Civil Resolution Tribunal, or by suing in the BC Supreme Court or Small Claims Court (depending on the amount owing).

Collection of Strata Fines

To legally impose a strata fine, a strata council must follow the bylaw enforcement process under the Act. Under section 135 of the Act, a strata council must deliver written notice to the strata lot owner outlining the details of the alleged bylaw breach, provide a reasonable opportunity - for the strata lot owner to respond either in writing or at a hearing, and provide written notice of the strata council’s decision (after the strata lot owner has had the opportunity to respond), which includes whether a fine will be imposed.

Once the strata fine is properly imposed, a strata council can collect fines by refusing to produce a Form F Certificate of Payment when the strata lot owner is selling their strata lot or pursue collection through legal proceedings. Unlike strata fees, strata fines are not lienable amounts under the Act, and strata councils cannot rely on this enforcement tool for collection of strata fines. Unpaid fines do not affect voting rights.

Prior to suing or initiating a claim for collection, a strata council must follow the required collection process under section 112 of the Act. This requires a strata council to first deliver to the strata lot owner a written demand for payment indicating the amount owed and that legal action may be taken if payment is not received within two weeks.

Recent BC Civil Resolution Tribunal (the “CRT”) decisions indicate the importance of strata councils following the procedural requirements under the Act when pursuing collection of strata fines. Even when the evidence of a bylaw breach is strong, the CRT frequently scrutinizes whether the strata council followed the procedural requirements set out in the Act. As strata fines are only valid if imposed fairly under section 135 and only collectible if a section 112 demand was issued, strata councils must follow the procedure under both sections to avoid the CRT overturning fines or rendering fines uncollectible.

Limitation Periods

Understanding the procedural frameworks for collection of strata fees and strata fines is essential, but strata councils must also be aware of the different limitation periods apply to the collection of strata fees and strata fines. Claims for unpaid strata fees are subject to a two-year limitation period pursuant to the Limitation Act (British Columbia). This means that a strata council must initiate legal proceedings or enforce a lien within two-years of the date that strata fees become due and owing. After this period, the unpaid strata fees become uncollectible.

Strata fines are not subject to the same two-year limitation period. Rather, case law and CRT decisions indicate that there is no statutory limitation period for the collection of strata fines, given that they are penalties and not “claims”. However, strata councils should not delay collecting strata fines, as they may be subject to equitable defenses such as laches and relief pursuant to section 24 of the Law and Equity Act (British Columbia). Practically speaking, it also may become more difficult to establish that a bylaw was breached years after the alleged breach. Furthermore, strata lot owners may argue that the strata fines have become disproportionate, given their deterrent purpose, especially if uncollected fines accumulate for repeated bylaw breaches. Relying on withholding a Form F to collect fines is also not recommended, as Form Fs are not necessarily required in all transfers of strata lot (for instance, a foreclosure).

Conclusion

Strata fees and strata fines serve different purposes and require different collection procedures. Strata fees are fundamental contributions to the operation and maintenance of a strata corporation and benefit from several different collection remedies, including imposing interest or a lien on the fees owing. Strata fines are penalties used to deter strata lot owners from breaching bylaws and can only be imposed and collected after strict procedural requirements are met. Recognizing these differences and acting proactively is crucial for responsibly managing a strata corporation’s finances.

1 Standard Bylaws 23 and 24 apply to any strata corporation that does not have its own bylaws about fines.

Sonal Kaura, Associate at Lawson Lundell LLP
Sonal has experience in a broad range of real estate matters including commercial acquisitions and sales, development-related matters, and strata-related matters. She has assisted clients at various stages of transactions and has also supported strata owners with practical guidance on bylaws and day-today challenges that arise in strata developments.