Strata Liens and Forced Sale in BC: How Sections 116 and 117 Work

A strata lien is the most powerful collection tool available to any ordinary creditor in British Columbia. It attaches to the strata lot, it generally outranks the owner's mortgage, and it is registered by the strata corporation itself without going to court first.

It is also the tool stratas most often misuse — registered for amounts that are not lienable, registered without the notice the Act requires, or left on title long after the debt was paid. Each of those turns the strata's strongest position into its own liability.

This article is general information about the Strata Property Act, not legal advice. Registering a lien wrongly can expose a strata corporation to a claim. Have your lawyer or licensed strata manager handle the registration, and get advice before applying for a forced sale.

We cover the whole collections ladder in what a BC strata can do when an owner doesn't pay. This article goes deeper on the two steps at the sharp end: the lien itself, and the court-ordered sale behind it.

What can be liened, and what cannot

Section 116 of the Strata Property Act lets a strata corporation register a lien against a strata lot for money owing in defined categories. Broadly, these are:

• Unpaid strata fees
• Unpaid special levies
• Reimbursement for the cost of work the strata carried out on the strata lot under the Act's remedial provisions
• The strata lot's share of a judgment against the strata corporation

That is the list, and the exclusion that matters most is fines. A properly imposed bylaw fine is a debt the owner owes the strata corporation, but it is not generally a lienable amount. The same caution applies to miscellaneous chargebacks — an amount only becomes lienable if it fits a category the section provides for.

This is the single most common error in BC strata collections. A statement of account that lumps fees, levies, fines, interest, move-in charges and an insurance deductible chargeback into one balance, followed by a lien for the whole figure, is a lien for the wrong amount. Split the ledger before you register anything.

Under section 118, the strata may add reasonable legal costs, Land Title Office fees, court registry fees and other reasonable disbursements to the amount owing. That is what makes an ignored small arrears balance grow so quickly.

The notice that has to come first

Section 112 requires the strata corporation to give the owner at least two weeks' written notice demanding payment and indicating the amount owing, before it takes the escalation steps the section covers — including registering a lien.

Two weeks. In writing. To the owner. Delivered by a method the Act permits, remembering that mail, fax and email are deemed received four days after sending, so build that into your timeline rather than counting from the day you sent it.

Councils skip this constantly, usually because the owner has already been chased informally for months. Informal chasing is not the statutory notice. Send the demand, diarise the date, and register after it expires.

Registering the lien

The lien is registered against the strata lot at the Land Title Office, using the form the Act prescribes. Once registered, it appears on title and will be found by every lender, buyer, conveyancer and title searcher who looks.

Priority is what makes it effective. A registered strata lien generally ranks ahead of most other charges on title, including the owner's mortgage — with the exceptions the Act sets out, which include certain Crown claims and builders liens in the way the Act provides. Property taxes and similar government claims sit ahead of almost everything.

The consequence is that the strata is usually first in line when money moves. That is why the lien so often collects without any further step.

Releasing it. When the debt and the permitted costs are paid, the strata must discharge the lien, using the prescribed form, without unreasonable delay. A lien left on title after payment is an unforced error that can cost the strata far more than the original arrears — it can block a sale or a refinancing, and the owner's loss becomes the strata's problem.

Why most liens never need a court

Three mechanisms tend to produce payment long before anyone files anything.

The sale. When the owner sells, the buyer's lawyer or notary needs a Form F Certificate of Payment confirming nothing is owed. A strata with arrears outstanding is not obliged to issue a clean Form F, so the debt is paid out of the sale proceeds at closing. Our comparison of Form B and Form F explains where each fits.

The mortgagee. A lender whose security has just been leapfrogged usually pays the lien out and adds the amount to the mortgage. Lenders monitor title; they do not enjoy surprises.

Compounding costs. Legal costs and disbursements added under section 118, plus interest where the bylaws allow it, make an ignored balance grow at a rate that focuses attention.

If a genuinely struggling owner is the issue rather than a defiant one, a documented payment plan is almost always the better commercial outcome. See can't afford a strata special levy for the owner-side options.

Section 117: the forced sale

If the debt still is not paid, section 117 allows the strata corporation, after registering a lien, to apply to the Supreme Court of British Columbia for an order for the sale of the strata lot.

The Act contemplates two routes:

1. 1.Where the strata has already obtained judgment for the amount owing, the court may — after considering all the circumstances — make an order for sale.
2. 2.Where the strata has not obtained judgment, the court may try the issue, enter judgment against the owner for the amount of the lien or such amount as it finds owing, and then make an order for sale, again after considering all the circumstances.

Everything turns on that phrase. Ordering the sale of a person's home is discretionary, and courts weigh the whole picture: the size of the debt relative to the value of the property, the equity available, how long the arrears have run, whether the strata acted reasonably and gave proper notice, what efforts the owner made, and whether a less drastic remedy would work.

Practical implications for a council:

• A small debt will not carry a forced sale. Proportionality matters, and an application over a modest balance risks a costs order against the strata.
• Your conduct is in evidence. Clean ledgers, proper notices, consistent treatment of every owner in arrears, and a documented willingness to accept a reasonable payment plan all strengthen the application. Selective enforcement weakens it badly.
• This is Supreme Court work, not Civil Resolution Tribunal work. The CRT handles most strata disputes and can order an owner to pay, but an order for the sale of a strata lot is a court remedy.
• Get owner approval for the spend. A Supreme Court application is a significant legal cost, and it needs to be authorised properly — through the budget, or by the vote the Act requires for an expenditure that is not.

If a lien has been registered against your unit

For owners, the worst response is silence. Costs accrue, and every week of delay makes the balance harder to clear.

1. 1.Ask for a full statement of account, itemised by category and date. You are entitled to the records; see requesting strata records in BC.
2. 2.Check what is in the number. If fines or non-lienable chargebacks have been rolled in, the lien amount may be wrong.
3. 3.Check that the two-week demand notice was given and how it was delivered.
4. 4.Dispute the amount properly if it is wrong — the Civil Resolution Tribunal is the usual forum, and it can decide what is actually owed.
5. 5.Propose a payment plan in writing if the debt is real. Be aware that making a payment can affect limitation timing, which cuts both ways; take advice if that matters to you.
6. 6.Do not wait for a sale. A lien discovered by your lender or by a buyer's lawyer mid-transaction is the most expensive way for this to end.

Where stratas get it wrong

• Liening for fines. The most common error, and the one most likely to produce a counterclaim.
• Skipping the section 112 notice. Cheap to do, fatal to skip.
• Overstating the amount. Interest charged without a bylaw permitting it, or above the rate the regulation allows, inflates the figure and undermines the whole registration.
• Inconsistent treatment. Liening one owner at 90 days and another at two years invites a significant-unfairness argument.
• Failing to discharge promptly. A paid lien left on title is a live liability.
• Freelancing the paperwork. Registration is a land title act with real consequences. This is the step where a lawyer or a licensed manager earns the fee.

Frequently asked questions

What can a BC strata register a lien for? Unpaid strata fees, unpaid special levies, reimbursement for work the strata carried out on the strata lot under the Act, and the lot's share of a judgment against the strata corporation. Bylaw fines are generally not lienable, even though they are a debt the owner owes.

Does a strata lien rank ahead of the mortgage? Generally yes. A registered strata lien takes priority over most other charges on title, including the owner's mortgage, subject to the exceptions the Act sets out such as certain Crown claims and property taxes. This is why lenders often pay a strata lien out and add it to the loan.

Does the strata have to warn me before registering a lien? Yes. The Act requires at least two weeks' written notice demanding payment and stating the amount owing before the strata takes escalation steps including registering a lien.

Can a BC strata really force the sale of my home over unpaid fees? It can apply to the Supreme Court for an order of sale after registering a lien, and the court may grant it after considering all the circumstances. It is discretionary, it is a last resort, and it is reserved for substantial debts where other avenues have failed. Most liens are paid out long before that.

What happens to the lien when I pay? The strata must discharge it, using the prescribed form, without unreasonable delay. A lien left on title after payment can block a sale or refinancing and exposes the strata corporation to a claim.

Related reading

• What a BC Strata Can Do When an Owner Doesn't Pay Strata Fees
• Can't Afford a Strata Special Levy? Options for BC Owners
• Form B vs Form F in BC: Which Document Do You Need?
• Strata Bylaw Enforcement & Fines in BC: How to Do It Right
• Can a Strata Evict an Owner in BC?
• What Is a Special Levy? A Plain-English Guide for BC Stratas

Sections 112 to 118 sit in Part 6 of the Strata Property Act and repay a careful read before your first lien.

A clean ledger, consistent triggers and correctly separated categories are what make collections work — and what keep them defensible. Onehive handles arrears process and lawyer hand-off as part of strata financial management — request a proposal.