Quick links
- STRATACCOUNT: a simple accounting program for BC stratas
- STRATACCOUNT: video demonstration
- BC Strata Housing: Budgeting and strata fees
- BC Strata Housing: Unit entitlement
About strata fees
One of the cornerstones of strata living is that each owner contributes money to the strata corporation to pay for expenses. We generally refer to these as strata fees. Those fees contribute money to both an operating fund for expenses that happen at least once per year, and a contingency reserve fund (CRF) for expenses that happen less frequently.
It’s estimated that 38% of strata corporations are calculating strata fees incorrectly. Let’s look at the correct way to calculate fees starting with an understanding of unit entitlement.
What is a schedule of unit entitlement?
This schedule sets out a basis to calculate strata fees and special levies. There is a numerical value for each strata lot. The schedule is filed at the Land Title Office.
Here’s an example of a Schedule of Unit Entitlement:
| Strata Lot | Unit Entitlement |
|---|---|
| 1 | 752 |
| 2 | 595 |
| 3 | 640 |
| 4 | 764 |
| 5 | 1,074 |
| 6 | 1,175 |
| Total U. E. | 5,000 |
Calculating strata fees
Section 99 of the Strata Property Act (SPA) explains how to use unit entitlement to calculate each strata lot’s share of the contributions in the budget. In this example, the strata owners passed a 12-month budget at their annual general meeting (AGM) with total contributions of $35,000. Calculate strata lot 1’s share using this formula:
(752 / 5,000) x $35,000 = $5,264
If the bylaws require fees to be paid monthly, and the payment schedule has equal payments, the strata fee for strata lot 1 would be $5,264 / 12 = $438.67 per month.
Strata sections
Some stratas have bylaws that create sections. For example, a strata corporation might have bylaws that create Section 1 (Residential Section), and Section 2 (Commercial Section). Each section has a budget setting out contributions to its operating fund and CRF. Here’s an example of a Schedule of Unit Entitlement where the residential section has 4 lots and the commercial section has 2 lots:
| Strata Lot | Unit Entitlement | Section 1 (Residential) | Section 2 (Commercial) |
|---|---|---|---|
| 1 | 752 | 752 | |
| 2 | 595 | 595 | |
| 3 | 640 | 640 | |
| 4 | 764 | 764 | |
| 5 | 1,074 | 1,074 | |
| 6 | 1,175 | 1,175 | |
| Total U.E. | 5,000 | 2,751 | 2,249 |
SPA s. 195 sets out a formula for a section to calculate contributions for the lots in a section. In this example, the residential section held an AGM and passed a 12-month budget with total contributions of $4,200 for the expenses that relate only to the residential section. Calculate strata lot 1’s share using this formula:
(752 / 2,751) x $4,200 = $1,148.09 ($95.67/month)
Each month, strata lot 1 pays $438.67 to the strata corporation and $95.67 to the residential section.
How is unit entitlement determined?
SPA s. 246 sets out how unit entitlement is determined. For residential strata lots in strata plans filed after July 1, 2000, it is:
a) the habitable area, in square metres, of the strata lot, as determined by a BC land surveyor, rounded to the nearest whole number,
b) a whole number that is the same for all of the residential strata lots, or
c) a number that is approved by the superintendent and that in the superintendent’s opinion allocates a fair portion of the common expenses to the owner of the strata lot
For strata plans filed before July 1, 2000, unit entitlement was determined in a similar manner according to the Condominium Act or Strata Titles Act.
See SPA s. 246 for complete details including how unit entitlement is determined for bare land strata lots, non-residential strata lots, and when approval of the Superintendent of Real Estate is required.
Can unit entitlement be changed?
If there are errors in the schedule, an owner or the strata corporation may apply to the BC Supreme Court for an order that a Schedule of Unit Entitlement be amended. SPA s. 246 sets out the types of errors the court may consider and what orders the court can make.
Can strata fees be calculated using a different formula?
SPA s. 100 allows the strata corporation to pass a resolution to agree to use a different formula to calculate strata fees. This agreement requires a unanimous vote at an annual general meeting (AGM) or special general meeting (SGM). For most stratas it’s simply not possible since every strata lot would have to vote in favour of the resolution. If passed, the change doesn’t come into effect until a copy of the resolution and a Certificate of Strata Corporation (Form E) is filed at the Land Title Office stating that the resolution has been passed by a unanimous vote. This change can be revoked or changed in the future by passing another resolution by unanimous vote and completing the filing requirements at the Land Title Office. Learn more about voting.
Common reasons for errors when calculating fees
The most common reason for errors when calculating strata fees is not using the correct unit entitlement or the approved formula. The proposed unit entitlement in a developer’s disclosure statement is estimated. These numbers often change by the time the building is constructed. Learn more about pre-sales and disclosure statements.
Another common mistake is using a list typed up by a previous council. These often contain errors. Strata councils and managers must use the values in the most recent document filed at the Land Title Office: the Schedule of Unit Entitlement or the formula approved by unanimous vote.
Each year when preparing the proposed budget and schedule of fees for the AGM notice package, ensure calculations are made using the correct values and formula. Don’t add a percentage to last year’s fees as this will result in errors which will compound over the years
Ordering documents from the Land Title Office
If the strata plan was filed before July 1, 2000, the Schedule of Unit Entitlement is included in the strata plan document. If the strata plan was filed on or after July 1, 2000, there is a separate document called a Form V: Schedule of Unit Entitlement. You can purchase a copy of the strata plan and/or Form V from the Land Title Office. You can also ask for a copy of the General Index to see if any resolutions and Form E have been filed. Learn how to purchase documents from the Land Title Office by reading 3 Free Tools for Strata Property Information.
Member-only Resources
Log in to your account to access the following resources. *Indicates a resource for corporate members only.
- Worksheet for creating a budget and calculating strata fees by unit entitlement (Excel)*
- Worksheet for calculating a special levy by unit entitlement (Excel)*
- How to purchase documents from the Land Title Office
