Are new strata corporations required to obtain a depreciation report?

The quick answer is yes, but we’ll go into more detail here.

As per the Strata Property Act, as of December 13, 2011, strata properties in BC with 5 or more strata lots are required to obtain depreciation reports every 3 years, unless waived by a 3/4 vote of the owners.

For new strata corporations, this requirement kicks in at a specific time. As per the Strata Property Regulation, unless the owners have waived this requirement, new strata corporations are require to obtain a depreciation report within 6 months after:

a) the date of the strata corporation's 2nd annual general meeting (AGM), or

b) if the 2nd annual general meeting (AGM) of the strata corporation has been waived, the last date by which the strata corporation would otherwise have been required to hold that meeting.

While it’s not uncommon for newer stratas to defer obtaining their first depreciation report, as many of its building components are still covered under the strata’s new home warranty, buying a strata lot in a strata corporation which does not have a depreciation report may present some additional risks to buyers, due to the unknown timing and cost of future capital expenditures.

Copyright (C) 2024 Condo Clear Services Inc.. All rights reserved.


No comments

Post Your Comment:

Your email will not be published
MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.