Can a strata corporation spend money without owner approval?

If an expenditure has not been approved in the budget or at an Annual or Special General Meeting, it may only be made in accordance with section 98 of the Strata Property Act. 1
A strata corporation may only make an unapproved expenditure if the total of all unapproved expenditures: 2

  • Is in compliance with the maximum amount and any conditions or limitations set out in a strata corporation’s bylaws; or
  • If the bylaws are silent, up to an amount equal to $2,000 or 5% of the total contribution to the operating fund, whichever is less.

If there are reasonable grounds to believe that an immediate unapproved expenditure is required to prevent significant loss or damage, whether physical or otherwise, a strata corporation may spend the minimum needed to prevent significant loss or damage. Owners must be informed of such expenditure as soon as is feasible. 3

 

 

 

Notes:

  1. Strata Property Act, SBC 1998, c.43, s.98(1)
  2. Strata Property Act, SBC 1998, c.43, s.98(2)
  3. Strata Property Act, SBC 1998, c.43, s.98(3), (5) and (6)
Oscar Miklos
Oscar Miklos is the founder and principal lawyer at Refresh Law in Burnaby and the founder of HousingGuide.ca. He regularly advises residential and commercial landlords and tenants, strata owners, strata corporations, property managers and insurance providers in all aspects of housing disputes.