Strata Fees, Special Levies & the Contingency Reserve Fund: What Condo and Townhome Buyers Should Know

If you are shopping for a condo or townhome in South Surrey or White Rock, the monthly strata fee is one of the first numbers you will see. But the fee is only part of the story. As South Surrey and White Rock realtors, we spend a lot of time helping buyers read strata finances, so here is a plain-language guide to fees, special levies, and the contingency reserve fund.

What Strata Fees Pay For

Strata fees come from the strata corporation's annual budget, which has two main parts. The operating fund covers the regular costs of running the building, such as insurance, cleaning, landscaping, maintenance, utilities for common areas, and management. The contingency reserve fund, or CRF, is a savings account for larger, less frequent expenses like a new roof, elevator work, or building envelope repairs. Your monthly fee is your share of both, usually based on your unit entitlement, which is set on the strata plan and is often tied to the size of your unit. What is included in your fee varies from building to building, so always check what is and is not covered.

The Contingency Reserve Fund

Under BC's rules, a strata corporation must contribute at least 10 per cent of its annual operating budget to the CRF each year, and it must consider the most recent depreciation report when setting that amount. That 10 per cent is a minimum, not a target. A building with a large, aging roof and a small reserve may need much more than the minimum to be in good shape, which is why the size of the fund compared with what the building will need is worth examining.

Special Levies

A special levy is a one-time charge to owners, on top of regular fees, to pay for a specific expense that the budget or the CRF cannot cover. In BC, a special levy generally must be approved by a three-quarter vote at a general meeting when it is shared in the same way as strata fees. Money raised by a levy can only be used for the purpose it was approved for. If the strata ends up with excess funds, the rules require them to be dealt with in a set way, such as being returned to owners or placed in the CRF.

Special levies are not automatically a sign of a bad building. Sometimes they are the right way to pay for needed repairs. But a history of frequent or large levies, or a building with major repairs ahead and a thin reserve, deserves a close look.

How Fees Change

Fees are set by the annual budget, which owners approve at the annual general meeting. When costs rise, such as insurance, utilities, or repairs, budgets and fees tend to rise too. If an unexpected cost appears mid-year, the strata may hold a special general meeting. A buyer should always ask about recent fee increases and the reasons for them.

What to Review Before You Buy

When you make an offer on a strata property, your realtor can help you review the documents during your subject period. These typically include:

• The Form B information certificate, which sets out the current fee and other key details

• Financial statements and the current budget, including the CRF balance

• Minutes of recent council meetings and general meetings, which often reveal upcoming repairs, disputes, or planned levies

• The depreciation report, if the building has one, which projects future major expenses

• The bylaws and rules, including those on pets, rentals, parking, and storage

• Insurance information, including the deductible and how it is shared

Strata corporations in Metro Vancouver, which includes White Rock and Surrey, were required to have a current depreciation report in place by July 1, 2026 under BC's updated rules, so a building without one deserves questions.

Questions Worth Asking

• How does the CRF balance compare with the depreciation report's recommendations?

• Are any special levies approved, proposed, or being discussed?

• What major repairs have been done recently, and what is coming?

• How have fees changed over the last few years, and why?

• Are there any legal actions or significant disputes?

• What is the insurance deductible, and how would a claim be shared?

If You Are Selling a Strata Property

Buyers and their realtors will look closely at your building's finances. Having your strata documents ready, and being able to explain recent repairs or levies, builds confidence. If your building is behind on its depreciation report, raise it with your strata council early.

Frequently Asked Questions

Are strata fees the same as property taxes? No. Strata fees pay for the strata corporation's operating budget and CRF. Property taxes are separate and are billed by your municipality.

Can a strata raise fees without a vote? Fees follow the annual budget approved by owners at a general meeting. Special levies need a three-quarter vote in most cases.

Is a low strata fee always better? Not necessarily. A low fee can mean a building is underfunding its reserve, which may lead to higher costs later. It is worth comparing the fee with what the building includes and what repairs are coming.

The Bottom Line

The strata fee tells you what a building costs this month. The reserve, the depreciation report, and the meeting minutes tell you what it may cost later. If you are considering a condo or townhome in South Surrey or White Rock, we would be glad to walk through the documents with you.

This post is general information about BC strata rules and is not legal or financial advice. Rules can change and every strata is different, so confirm current requirements with BC's strata housing resources or a real estate lawyer, and review your specific building's documents carefully.