Depreciation reports are mandatory as of December 14, 2013 for all strata corporations.
Depreciation reports must be prepared by a qualified person and updated every three years, unless the strata has:
• four or fewer units; or
• five or more units where the strata exempts itself through an annual 3/4 vote.
Strata corporations formed after December 14, 2011, must file a depreciation report within six months of their second AGM.
What is a depreciation report?
“The depreciation report identifies future costs from the buyers’ perspective that can’t be discovered in a typical building inspection,” explains Tony Gioventu, Executive Director, Condominium Home Owners Association of B.C.
Here are two sources of detailed information about strata depreciation reports:
1. What to Know About Depreciation Reports by the Condominium Home Owners Association of B.C. Available at www.choa.bc.ca/resources.html#smarts.
2. Guide 12: Depreciation Reports. Available at: www.housing.gov.bc.ca/pub/stratapdf/Guide12.pdf.