The Strata Form C in British Columbia, as defined by the Strata Property Act, is the Mortgagee's Request for Notification. Its function is to allow a lender (the mortgagee) to formally request that the strata corporation provide them with notice of important events relating to the strata lot they hold the mortgage on.
The primary function of the Strata Form C is to protect the mortgagee's investment by ensuring they are kept informed of critical financial and legal issues that could jeopardize the security of their loan.
The Form C allows the mortgagee to request two types of crucial notifications from the strata corporation:
Notices of General Meetings: The mortgagee will receive notices for both Annual General Meetings (AGMs) and Special General Meetings (SGMs), as required under Section 45 of the Strata Property Act. This allows the lender to monitor decisions that affect the property's value, such as approval of large special levies or significant changes to common property.
Notices of Money Owing: The mortgagee will receive notice under Section 113 of the Act if the strata lot owner is late or in default on their financial obligations to the strata corporation (e.g., strata fees, fines, special levies). This alerts the lender before the strata corporation registers a lien against the unit, which would take priority over the mortgage.
Duration of Notification
The request for notification is valid for a maximum of 5 years from the date the Form C is signed, or until the mortgagee ceases to be a mortgagee of the strata lot (i.e., the mortgage is discharged).
The process is initiated by the financial institution or private lender who holds the mortgage on the strata lot.
Step / Description / Details & Requirements
1. Preparation
The lender (mortgagee) fills out the official Strata Form C.
The form must clearly identify the strata lot number and the strata plan number.
2. Request
The completed form is submitted to the strata corporation or its strata property manager.
The form must clearly indicate the name and address where the notifications are to be sent.
3. Mortgage Verification
The strata corporation reviews the request to confirm the applicant is, in fact, the registered mortgagee for that specific strata lot.
The lender must be a person or entity entitled to be the registered owner of the charge (mortgage) on the land.
4. Commencement
Once the form is received and accepted, the strata corporation is obligated to start sending the requested notifications to the mortgagee.
The requirement to provide notifications lasts for the duration specified on the form (max 5 years) or until the mortgage is discharged.
5. Expiry/Renewal
If the mortgage remains in place after the 5-year period expires, the lender must submit a new Strata Form C to renew the notification request.
If the mortgage is paid off, the notification requirement immediately ceases.
In essence, the Strata Form C formalizes the direct line of communication between the strata corporation and the lender, ensuring the lender can proactively protect their financial interest in the property.