A Depreciation Report is a comprehensive study of the common physical components within a strata corporation, including an inventory and summary of all necessary renewals and maintenance for the next 30 years, plus a financial plan for the future. As buildings age there are necessary costs incurred to maintain the common property and assets of the strata corporation. A depreciation report will provide a strata corporation with the tools it needs to properly and accurately plan for the future.
These regulations will have a dynamic impact on BC's strata community, and the real estate industry. Buyers will be even better informed in the future, as they will soon be able to ask for copies of the depreciation report so they know up front what they are buying into. Mortgage providers will also want to assess risk when determining eligibility for financing.
Following amendments to the Strata Property Act, the Provicinal Government has introduced new guidelines making these reports mandatory for strata corporations in BC. Strata Corporations of less than 5 units will be exempt from the requirements, plus a strata corporation may consider exempting itself by passing a 3/4 vote resolution every 18 months.
HERE is a guide to assist consumers from the Condominium Home Owners' Association of B.C.
For additional help on what this may mean for you, visit the Condominium Home Owners' Association of BC website HERE.