Owners Can Challenge Strata Fees Post-Sale, Expert Advises

When homeowners sell their property, unresolved financial disputes can complicate transactions. A recent case highlights this challenge, as a homeowner discovered a significant charge just before the sale of their strata lot. The homeowner, identified as Warren M., was informed by their lawyer about an unexpected $1,800 charge for damages attributed to their unit, dating back to March 2024.

Warren noted that he had never received prior notification of any claims regarding damages. The property manager claimed the charges stemmed from an overflowed toilet in their vacant unit, despite the owner being present during the period in question. To facilitate the sale and avoid complications, Warren paid the fee without receiving documentation.

This scenario raises important questions about the rights of homeowners after a sale. According to Tony Gioventu, executive director of the Condominium Home Owners Association, homeowners retain the right to dispute such charges even after the sale is completed. He advises that Warren should pursue all related documentation and consider filing a claim with the Civil Resolution Tribunal (CRT) to address these charges.

Documentation is crucial in these cases. Homeowners are encouraged to request a copy of a Form F payment certificate well before completing a sale. This form serves as proof that all accounts are settled and is valid for 60 days. If any claims exist, this provides homeowners with an opportunity to contest unsubstantiated costs before finalizing the transaction.

Strata corporations hold responsibilities that should not be overlooked. They must exercise due diligence in their claims, ensuring transparency and proper communication with homeowners. “It is unacceptable for a claim to emerge at the last minute, particularly when it involves undisputed or unsubstantiated amounts,” Gioventu stated.

In light of the growing complexity of strata management, having clear bylaws is essential. These regulations should outline the conditions under which charge backs and claims can be made. The bylaws will be referenced by both the CRT and the courts when determining whether charges against a strata lot are permissible. They help ensure that any imposed charges are backed by proper enforcement and council decisions.

While a charge of $1,800 may seem minor, disputes over strata fees can escalate dramatically, sometimes exceeding $100,000. Thus, it is vital for strata corporations to establish clear guidelines surrounding damages and insurance deductibles. This will not only protect the interests of homeowners but also enhance the overall management of strata properties.

In conclusion, Warren M. has the right to challenge the charge imposed by the strata corporation. By gathering necessary documentation and possibly involving the CRT, he can assert his rights as a property owner. This case underscores the importance of communication and clarity in strata management, benefiting both owners and corporations alike.