Contingency reserve funds and special levies: what BC condo owners pay for
The strata fee pays for running the building. The reserve fund and special levies pay for the big repairs. Here is how they work and how to spot a building at risk.
5 min read · updated 2026-09-29 · sources at the end
Two kinds of money
The operating budget covers the building's yearly costs: cleaning, utilities in the common areas, insurance, management, routine maintenance. The contingency reserve fund (CRF) is a separate savings account for major repairs and replacements that do not happen every year.
If the CRF is too small when a big repair arrives, the strata can raise the money through a special levy: an extra charge to every owner, on top of the monthly fee.
How the votes work
- A special levy has to be approved at an annual or special general meeting by a three-quarter vote of the owners present in person or by proxy. The resolution must state the purpose, the total amount, how each unit's share is worked out, and each unit's share.
- Spending from the CRF also generally needs a three-quarter vote, with limited exceptions such as emergency work.
- A special levy has to fund a specific purpose. It cannot simply be used to top up the reserve fund.
Signs a building may be heading for a levy
- A reserve balance that is small next to the repairs listed in the depreciation report.
- A very low monthly strata fee for the age and size of the building.
- Repeated minutes about the same failing component: roof, envelope, elevator, boiler, plumbing risers.
- Recent large expenses paid out of the reserve with no plan to refill it.
- A special levy discussed or tabled but not yet voted on. Ask the seller's agent directly.
Protect yourself in the contract
The Form B reports levies that have been approved. Whether the buyer or the seller pays a levy that was approved before the completion date but is payable after it is a matter for the contract, so have it written down clearly rather than assumed. Your agent or lawyer should address it before you remove subjects.
Frequently asked questions
Is a high strata fee a bad sign?
Not by itself. A higher fee often means the building saves properly or includes heat, hot water or amenities. Compare the fee to what it includes and to the repairs the building needs; on our search you can sort by strata fee per square foot.
Can a special levy be challenged?
An owner who believes a levy was passed improperly can raise it with the strata or use BC's dispute processes, but the practical protection is to review the minutes and reserve before you buy.
Do levies attach to the unit or the owner?
That depends on when the levy was approved and the terms of the purchase contract. Get it addressed in writing before completion.
Sources
- Province of BC: special levies in stratas
- Strata Property Act, BC Laws (finances: contingency reserve fund and special levy sections)
- Province of BC: Form B, Information Certificate
General information for British Columbia, not legal, tax or financial advice. Rules change: confirm current requirements with the sources above and your own lawyer, accountant or mortgage broker before you buy.