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Is a chargeback collectible?

To chargeback expenses, the strata corporation must have a bylaw that permits it to charge them back. The standard only requires that the damage arise from a component of the strata lot, which is the owner’s responsibility to repair and maintain. Similarly, before any other type of invoice is charged back, one should ask what provision of the Act, Regulations, bylaws or rules allows the council to charge this back. If the answer is because the strata lot contravened a bylaw, then section 135 of the Act must be followed before the charge back can be applied. This requires the strata corporation to send a notification letter to the owner outlining the particulars of the alleged bylaw contravention. The strata corporation must also give the owner an opportunity to respond or a hearing, if requested. After the deadline to respond passes, the council must meet to consider the allegations, any written response, and any submissions made at a hearing. Once that decision is made, it should be minuted in the minutes of the council meeting and a letter should be sent advising the owner of the decision. Failure to follow those steps will render the chargeback uncollectable.

In summary, chargeback must be one of the followings:

(1) It is the strata lot’s responsibility to repair or maintain the canopy in question;

(2) It is relating to the bylaw contravention - under such an event, the regular proper notification procedures must be followed.


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