Depreciation Report

A Depreciation Report is a mandatory 30-year long-term financial planning document required for BC strata corporations with 5 or more strata lots under the Strata Property Act (SBC 1998, c. 43) and its Regulation. It assesses the condition of a strata corporation's common property and common assets, estimates the remaining lifespan and replacement costs of major components, and projects funding scenarios for the Contingency Reserve Fund. The report helps strata owners and prospective buyers understand the long-term capital expenditure obligations of the strata corporation.

As of July 1, 2024, under Order in Council 204-2024 amending the Strata Property Regulation, BC strata corporations with 5 or more lots must obtain a Depreciation Report every 5 years. The previous ability for strata corporations to defer or waive the report by a three-quarters vote of the owners has been eliminated. Strata corporations must comply with this updated cycle regardless of whether owners vote otherwise.

No. As of July 1, 2024, the amendment to the Strata Property Regulation through Order in Council 204-2024 removed the provision that previously allowed strata corporations to defer obtaining a Depreciation Report by a three-quarters vote. All strata corporations with 5 or more lots are now required to obtain the report on the mandatory 5-year cycle without any deferral mechanism available to them.

As of October 27, 2025, Order in Council 497-2025 designated nine categories of professionals authorized to prepare Depreciation Reports in BC: engineers, professional licensee engineers, architects, architectural technologists, applied science technologists, certified technicians, certified appraisers, certified reserve planners, and quantity surveyors. Strata corporations should confirm that the individual they retain holds the applicable designation or licence within one of these nine categories before commissioning the report.

Under the Strata Property Act (SBC 1998, c. 43) and the Strata Property Regulation, a Depreciation Report must include a physical inventory and condition assessment of common property and common assets, estimated costs and timelines for repair or replacement over a 30-year horizon, and at least three funding models for the Contingency Reserve Fund. As updated by OIC 204-2024, the report must also include an executive summary and, where applicable, an assessment of air conditioning and ventilation components.

No. These are two distinct documents under BC strata law. A Depreciation Report is a 30-year capital planning document covering the broad common property and assets of a strata corporation as required under the Strata Property Act (SBC 1998, c. 43). An Electrical Planning Report is a separate requirement introduced to assess electrical infrastructure capacity, often in the context of EV charging readiness, and the two reports serve different purposes and are governed by different provisions.

Yes. One of the primary purposes of a Depreciation Report under the Strata Property Act (SBC 1998, c. 43) is to provide the strata corporation with financial planning information to ensure the Contingency Reserve Fund is adequately funded. The report must include at least three different funding model scenarios, allowing the strata council and owners to make informed decisions about annual contributions to the fund. Inadequate reserve funding identified in a Depreciation Report may signal future special levies for owners.

Yes. A prospective buyer of a strata lot in BC can request a Form B Information Certificate from the strata corporation, and under the Strata Property Act (SBC 1998, c. 43) the strata corporation must disclose whether a Depreciation Report exists and provide access to it as part of the strata document package. Reviewing the most recent Depreciation Report is an important part of strata property due diligence, as it reveals anticipated future repair costs and the adequacy of the Contingency Reserve Fund.

Under the Strata Property Act (SBC 1998, c. 43) and its Regulation, strata corporations with fewer than 5 strata lots are exempt from the Depreciation Report requirement. Bare land strata corporations and phased strata corporations may also be subject to specific rules; strata corporations should consult the current Strata Property Regulation or seek qualified legal advice to confirm whether any exemption applies to their specific circumstances.

The British Columbia Financial Services Authority (BCFSA) and the Real Estate Services Act (RESA) govern the conduct of licensed real estate professionals, including their obligation to disclose material information to clients, which can include the existence or content of a Depreciation Report when advising on a strata property transaction. However, the substantive legal requirements for Depreciation Reports themselves — including who must obtain them, their content, and their frequency — are governed by the Strata Property Act (SBC 1998, c. 43) and the Strata Property Regulation, not by BCFSA or RESA.