Collecting Penalties and Fines
Talkstrata » Forums » General Strata Q & ASubmitted by Don on Sun, 03/02/2008 - 17:24.
Our strata recently passed bylaw amendments that provide ongoing monthly penalties for strata fees or special levies in arrears. What is not addressed is how to collect these if not paid, or if disputed. One suggestion is that penalties and fines should be taken first from any monies received, but our management firm is unclear as to whether this is enforceable, or whether unpaid penalties can attract interest or make an owner ineligible to vote or sit on Council. Has this issue been successfully dealt with elsewhere?
Moderator
Tue, 03/04/2008 - 04:18
The suggestion to take penalties and fees first from money paid is a good one. This is beacsue the strata corporation would have to go to small claims court to collect them if they were not paid. In the case of the unpaid strata fee itself, the strata corporation can put a lien on the strata lot. This lien would have to be removed by paying the amount of unpaid fees plus any legal costs before any competent lawyer acting for a purchaser would complete the purchase on behalf of his client. Sorry I haven't been able to find any case law that fits the circumstances you have described.
Tue, 04/01/2008 - 04:07
I have a neighbour who leaves garbage all around the front of our units. Including carpet and underlay. I have complained to the strata about the mess. I mentioned the fines and sugguest to impose them. I have been told that by the strata (we do not have a management company, the strata is self managed) that it is illegal to fine the owner. This owner also does not pay his strata fees, and the councel tells me there is nothing they can do. Where do i go to get some up to date iformation on fees and fines?
Moderator
Tue, 04/01/2008 - 17:03
It is quite legal to fine an owner for a violation of the bylaws as long as the bylaws enable such a fine and the strata council provides the offender to be heard before levying the fine. If the levied fine is unpaid it can be collected through an action in Small Claims Court.
There is quite a bit that can be done to collect unpaid strata fees. According to sections 116 and 118 of the Strata Property Act, the strata corporation can place a lien on the strata unit in respect of the unpaid fees and specific legal costs required to do so. These amounts then become easily recoverable when the unit owner goes to sell the property. In case the strata corporation does not want to wait for the property to be sold before being paid, it can force the sale of the property under section 117.
Generally speaking, the strata corporation will need a lawyer to help assert its rights here but "reasonable legal costs" are recoverable when the unit owner pays off the lien.
My suggestion is for the strata council send a letter to the unit owner demanding payment and stating that a lien will be placed on the unit (under section 116 of the Strata Property Act) if the fees are not paid immediately.
Moderator
Tue, 04/01/2008 - 17:03
It is quite legal to fine an owner for a violation of the bylaws as long as the bylaws enable such a fine and the strata council provides the offender to be heard before levying the fine. If the levied fine is unpaid it can be collected through an action in Small Claims Court.
There is quite a bit that can be done to collect unpaid strata fees. According to sections 116 and 118 of the Strata Property Act, the strata corporation can place a lien on the strata unit in respect of the unpaid fees and specific legal costs required to do so. These amounts then become easily recoverable when the unit owner goes to sell the property. In case the strata corporation does not want to wait for the property to be sold before being paid, it can force the sale of the property under section 117.
Generally speaking, the strata corporation will need a lawyer to help assert its rights here but "reasonable legal costs" are recoverable when the unit owner pays off the lien.
My suggestion is for the strata council send a letter to the unit owner demanding payment and stating that a lien will be placed on the unit (under section 116 of the Strata Property Act) if the fees are not paid immediately.
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