The Strata Property Act has been amended with regards to the Depreciation Report. Under B.C.’s newly amended Strata Property Act and regulations, all strata corporations with five or more strata lots must obtain depreciation reports. Strata corporations may no longer defer getting a depreciation report by holding an annual 3/4 vote. Strata corporations will have time to meet this requirement. All strata corporation with 5 or more units in Metro Vancouver must have their Depreciation Report before July 1, 2026.
Strata corporations are legally required to repair and maintain common property. A depreciation report tells a strata corporation what common property and assets it has and the projected maintenance, repair and replacement costs over a 30-year time span. Common property is not just buildings. Common property and assets can also include landscaping, roads, recreational amenities and many other items. All strata corporations including bare land strata corporations (sometimes referred to as “strata subdivisions”) with five or more strata lots will also have to obtain depreciation reports on a five-year cycle. Bare land strata corporations are usually responsible for the long-term repair and maintenance of subdivision infrastructure including roads, water, electricity, and sewage. The depreciation report helps strata lot owners protect their homes and investments and avoid being surprised by unexpected special levies. The report also provides valuable information to prospective buyers, mortgage and insurance providers.
Effective July 1, 2024, the Province has strengthened requirements for strata depreciation reports as per OIC 204-2024 (deposited April 22, 2024).
- All strata corporations with five or more lots must obtain a depreciation report on a five-year cycle; strata corporations with four or fewer lots continue to be exempted
- Strata corporations may no longer hold an annual ¾ vote to defer getting a depreciation report
- Strata corporations without depreciation reports, or depreciation reports received prior to December 31, 2020, will have time to obtain depreciation reports:
- until July 1, 2026, if located in Metro Vancouver (other than an island within Metro Vancouver only accessible by boat or air such as Bowen Island), the Fraser Valley, or the Capital Regional District (other than an island within the CRD only accessible by boat or air such as the Southern Gulf Islands)
- until July 1, 2027, if located in other areas of British Columbia including the Southern Gulf Islands and Bowen Island
- Effective July 1, 2025, strata corporations must obtain depreciation reports from one of six designated professions: engineers, architects, applied science technologists, accredited appraisers, certified reserve planners, and quantity surveyors. Specifically:
(i) a professional engineer registered as a member in good standing with the Association of Professional Engineers and Geoscientists of the Province of British Columbia;
(ii) a person registered as an architect with the Architectural Institute of British Columbia;
(iii) a person registered as an applied science technologist under the Professional Governance Act;
(iv) a person designated Accredited Appraiser Canadian Institute by the Appraisal Institute of Canada;
(v) a certified reserve planner accredited by the Real Estate Institute of Canada;
(vi) a person designated as Professional Quantity Surveyor by the Canadian Institute of Quantity Surveyors.
- New strata corporations established on or after July 1, 2024 but before July 1, 2027, must get a depreciation report within two years of the strata corporation’s first annual general meeting and every five years thereafter
- As of July 1, 2027, owner developers will provide some funding towards the first depreciation report for new strata corporations with five or more lots: a minimum of $5,000 plus $200 per strata lot to a maximum of $30,000. Accordingly, strata corporations established on or after July 1, 2027, must obtain a depreciation report within 18 months of the strata corporation’s first annual general meeting
The regulations have added to the content required in depreciation reports: an executive summary, and (if applicable to the strata corporation) air conditioning and ventilation.
Strata Property Act: Table of Contents – Strata Property Act
