What You Need to Know Before You Buy 

If you’re buying or owning in a strata, you may have come across the term special levy in your document review.

And if you’re not familiar with what that means, don’t worry—you’re not alone!

Special levies are one-time payments collected from strata owners when the Contingency Reserve Fund (CRF) doesn’t have enough money to cover a major expense.

These levies can add thousands of dollars to your housing costs and often come as a surprise to owners who didn’t know to look for them in advance.

So, how do you know if a levy is coming, and how can you protect yourself from unexpected costs? Let’s break it all down.

What Is a Special Levy?

A special levy is an extra fee charged to strata owners when the reserve fund is insufficient to cover repairs, legal fees, or major projects.

Common Reasons for Special Levies:

✅ Major Repairs – Roof replacements, plumbing failures, elevator repairs, or foundation work.
✅ Emergency Expenses – Unexpected damage from fires, floods, or structural issues.
✅ Legal Fees – Lawsuits involving the strata that require additional funding.

The bottom line? If a strata isn’t financially prepared for these costs, the owners are expected to pay out of pocket—and this can be a significant financial burden.

Unlike monthly strata fees, special levies aren’t optional. Once approved, all owners must contribute based on their Unit Entitlement (UE).

How to Spot an Upcoming Special Levy

One of the biggest mistakes buyers make is not checking for signs of future levies before purchasing.

While no one can predict the future, there are key warning signs that a special levy may be on the horizon.

Where to Look for Red Flags:

📑 Meeting Minutes – If major repairs are discussed without a funding plan, this could mean a special levy is coming.

📉 Depreciation Report – If large projects are listed but no money has been allocated, the funds may need to come from owners.

💰 Reserve Fund (Form B) – A low balance in the Contingency Reserve Fund means there’s not enough to cover big expenses.

⚠ Repeated Discussions About Funding – If funding issues keep coming up, it may indicate the need for a levy.

If any of these red flags appear, it’s critical to ask questions before making an offer.

How Are Special Levies Calculated?

Every strata unit has a Unit Entitlement (UE), which determines how much of the shared expenses each owner is responsible for.

Example: A $500,000 Special Levy in a 100-Unit Building

➡️ A unit with 100 UE pays $5,000
➡️ A unit with 200 UE pays $10,000

Since Unit Entitlement is fixed, owners can’t negotiate their share of the costs.

Special levies must be paid upfront or, in some cases, in installments—but your mortgage won’t cover them.

How to Protect Yourself as a Buyer

While special levies aren’t always a dealbreaker, it’s important to go in with your eyes open and protect yourself financially.

4 Steps to Reduce Your Risk:

✅ Check strata documents – Look for warning signs in meeting minutes, depreciation reports, and Form B.

✅ Review the reserve fund – If it’s low, a levy is much more likely.

✅ Ask the strata council – Are there any major projects planned with no clear funding?

✅ Include a clause in your offer – Ensure any levies approved before closing are paid by the seller!

How Special Levies Can Be Used as Leverage

Special levies can be frustrating—but they can also present an opportunity.

💡 If a levy is coming up, you may be able to negotiate a lower purchase price.

Even if the seller agrees to pay the levy, you as the buyer may have to live through the inconvenience—whether it’s construction noise, limited building access, or common areas being unusable.

By factoring these disruptions into your negotiation strategy, you can use future levies as leverage in price discussions.

📌 The key takeaway? Understanding strata finances gives you an edge—not just in avoiding costly surprises, but in negotiating a better deal.

Final Thoughts

A special levy doesn’t have to be a dealbreaker, but it does need to be fully understood before purchasing.

If you’re looking at a strata property, I highly recommend reviewing the documents carefully and making sure you know what you’re getting into.

✅ Need help reviewing strata documents? I’d love to assist!
📩 Reach out for my FREE Buyer & Seller Guides for more real estate insights.

The Biggest Home Buying Mistake: Forgetting About the Neighbourhood!

When searching for a home, it’s easy to get caught up in square footage, kitchen upgrades, and the dream of finally having your own space. But one of the biggest mistakes buyers make? Focusing only on the home and forgetting about the neighbourhood. You can renovate a house, but you can’t renovate the area around it!

Thanks to #TouringWithTyler, I see hundreds of homes across the Lower Mainland and explore a wide range of neighbourhoods. Through my tour videos, I gain insight not just into the properties themselves but also into the communities that surround them. That experience gives me a unique edge in helping buyers find a home and a neighbourhood that truly fits their lifestyle. If you're not already following me on social media, check out my videos by searching for #TouringWithTyler!

As a realtor, I see this all the time—buyers fall in love with a home, move in, and then realise the location doesn’t quite fit their lifestyle. The neighbourhood plays a huge role in your daily happiness, convenience, and even the long-term value of your home. So, how do you make sure you’re buying in the right place? Let’s dive in!

Finding the Right Neighbourhood: What to Look For

Before committing to a property, take some time to get familiar with the neighbourhood. Here are some key things to consider:

✅ Walk Around at Different Times of the Day – A quiet street in the afternoon might turn into a nightlife hotspot in the evening. Spend time there during the day, after dark, and even on weekends to get a feel for the area’s energy.

✅ Check Out Local Amenities – Where’s the nearest coffee shop, grocery store, gym, or pharmacy? Are there parks or green spaces nearby? A great home is even better when it’s surrounded by the conveniences you love!

✅ Test the Commute – If you drive, try the commute during peak hours. If you take transit, check for convenient routes. Your dream home might not be so dreamy if your daily commute becomes a nightmare.

✅ Meet the Community – If possible, talk to people in the neighbourhood! Ask them what they love (or don’t love) about living there.

✅ Look at Future Growth & Development – Are there any upcoming transit expansions, new businesses, or planned community projects? Future developments can increase home values over time and make a neighbourhood even more desirable.

✅ Trust Your Gut – When you walk around, does it feel like home? Do you feel safe and comfortable? A house is a long-term commitment, so your surroundings should be a place you enjoy.

My Personal Experience: Taking a Risk on the Right Neighbourhood

When my partner and I bought our home, we took a bit of a risk. We ended up purchasing in a neighbourhood that wasn’t our first choice and that we weren’t overly familiar with. We had a wish list, and while we found a condo that checked all the right boxes, we had to weigh that against the surrounding area. While it wasn’t exactly what we had envisioned, we saw its potential. There were planned improvements, and overall, the neighbourhood had most of what we wanted.

Fast forward, and it worked out incredibly well. We’ve grown to love our community, and the developments in the area have made it even better than we imagined. In fact, it turned out so well that some of our friends recently bought a home just across the hall!

The lesson? Sometimes the perfect home and the perfect neighbourhood don’t come in the same package. But with a bit of research and an open mind, you can strike the right balance between location and lifestyle.

What If Your Dream Neighbourhood Is Out of Budget?

It happens all the time—buyers have their hearts set on a particular area, only to find out that homes there are way over budget. If this happens to you, don’t panic! Instead, consider:

👉 Looking at Adjacent Neighbourhoods – Many up-and-coming areas offer similar amenities and lifestyle perks at a lower price point. They may even have more space for your budget!

👉 Focusing on the Essentials – Prioritise your non-negotiables. If you need to be close to work or family, you might compromise on things like a bigger yard or a newer build.

👉 Thinking Long-Term – Ask yourself: Will this area grow in value? Are there future plans for transit, parks, or community spaces? Investing in an area with potential could pay off in the long run.

The Bottom Line: A Home is More Than Just Four Walls

When buying a home, the neighbourhood should be just as important as the house itself. Finding the right balance between home features, price, and location can make all the difference in how much you love where you live.

If you’re not sure where to start, I can help! I tour hundreds of homes all over the Lower Mainland (#TouringWithTyler), which means I know not just the listings, but the buildings and the communities, too. Whether you’re new to Vancouver or just need insight into different areas, I’d love to help you find the right fit.

📩 Have questions? Reach out anytime—call, text, or message me. Let’s find the right home and neighbourhood for you!

📖 Grab my FREE Homebuyer’s Guide here: https://tylerburrows.com/buying
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Let’s make sure your next move is the right one! 🏡