A BC strata corporation has imposed a special levy of $25,000 per unit for building repairs. How might this affect a buyer's mortgage qualification?
Correct Answer
C) The lender may require proof of payment or additional funds to cover the levy
A lender assessing a strata purchase will look at any approved special levy, which the strata's Information Certificate (Form B) must disclose under Strata Property Act s. 59(3)(d). Because the buyer owes any portion payable on or after the completion date (s. 109), the lender may require proof the levy has been paid or will be paid by the seller, or evidence that the buyer has funds to cover it.
Why This Is the Correct Answer
This answer is correct. A $25,000 levy is a real obligation attached to the strata lot. A lender can reasonably require proof that it has been or will be paid, or that the buyer has additional funds to cover it, before approving the mortgage.
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