Engineer's Report

In British Columbia, an engineer's report is a professional assessment prepared by a licensed engineer to evaluate a specific building component — such as a parkade structure, retaining wall, roof, or mechanical system — that the strata corporation needs expert analysis on before undertaking a significant repair. Strata corporations are governed by the Strata Property Act (SBC 1998, c. 43), which grants strata corporations the authority to manage and maintain common property and common assets. Commissioning an engineer's report is a practical step strata councils take when a deficiency exceeds their in-house expertise and when the anticipated cost may require special levy approval or depreciation report updates.

The Strata Property Act (SBC 1998, c. 43) does not impose a blanket statutory requirement that a strata corporation obtain an engineer's report before every major repair, but the Act does require the strata corporation to repair and maintain common property and common assets, and to act reasonably in doing so. An engineer's report is often the prudent mechanism to satisfy that duty of reasonable care, particularly for structural, mechanical, or civil issues where professional assessment is needed to scope the work and estimate costs. Strata councils that skip professional assessment when the circumstances clearly warranted it may expose the corporation to liability claims from owners.

A buyer should look at the Form B Information Certificate issued under the Strata Property Act (SBC 1998, c. 43) and its Regulation, which must disclose, among other things, any current or anticipated special levies and the state of the contingency reserve fund; engineer's reports related to those issues are often attached or referenced. Annual general meeting (AGM) and special general meeting (SGM) minutes, which Form B must accompany, frequently record council resolutions to commission or receive engineer's reports. A buyer's licensee, acting under the Real Estate Services Act and BCFSA guidance, should request all strata documents including any engineer's reports referenced in the minutes.

Under the Strata Property Act (SBC 1998, c. 43), owners and, with permission, prospective purchasers are entitled to inspect strata corporation records, which include reports prepared for the corporation. A strata corporation that refuses to make an engineer's report available when it is a strata record risks non-compliance with the Act's document access provisions. Buyers who cannot obtain a copy through the strata corporation should raise the issue with the seller's licensee and may consider making their offer subject to satisfactory review of all strata documents, including the engineer's report.

A depreciation report, required under the Strata Property Act (SBC 1998, c. 43) and its Regulation for most strata corporations with five or more strata lots, is a long-term planning document that inventories common property components, estimates their remaining useful life, and projects repair and replacement costs over a 30-year horizon. An engineer's report on a specific failing component — such as a deteriorating parkade membrane or aging boiler — may be commissioned separately when the issue is urgent or requires a level of structural or mechanical analysis beyond the scope of the depreciation report. The findings of an engineer's report can and should be incorporated into or trigger an update of the depreciation report to keep projected costs accurate.

A real estate licensee in British Columbia is governed by the Real Estate Services Act and BCFSA Rules, which impose duties of disclosure and competent service to their client. If an engineer's report reveals a serious structural deficiency — such as a compromised parkade or failing retaining wall — the licensee must ensure their buyer client is aware of the report and its implications before removing subjects, as failure to bring material information to a client's attention can constitute a breach of their professional obligations. The licensee should recommend that the buyer obtain independent professional advice, such as their own engineering review, and should not downplay or omit material findings.

Yes. Under the Strata Property Act (SBC 1998, c. 43), if the strata corporation's contingency reserve fund (CRF) is insufficient to cover the full cost of a repair identified in an engineer's report, the strata corporation must pass a resolution at a general meeting — requiring a three-quarters vote — to approve a special levy to fund the shortfall. A large special levy is a significant financial liability for strata lot owners, including any buyer who purchases after the resolution is passed or after the obligation becomes known. Buyers should review the Form B, AGM minutes, and any engineer's reports carefully to assess whether a special levy has been approved or is likely to be proposed.

An engineer's report does not directly alter the Property Transfer Tax (PTT) calculation under the BC Property Transfer Tax Act, which is based on the fair market value of the property at the time of transfer using the applicable rate tiers. However, a serious structural issue documented in an engineer's report may affect the negotiated purchase price, which in turn affects the PTT base; PTT is calculated at 1% on the first $200,000, 2% on the portion from $200,001 to $2,000,000, 3% on the portion from $2,000,001 to $3,000,000, and an additional 2% on the residential portion above $3,000,000. Buyers should note that PTT is assessed on fair market value, not a distressed price, so consult the BC Ministry of Finance or a legal professional if valuation questions arise.

An engineer's report accepted by a BC strata corporation should be prepared by a professional engineer registered and in good standing with Engineers and Geoscientists British Columbia (EGBC), which is the regulatory body established under the Engineers and Geoscientists Act of BC. The engineer must hold a practice licence in the relevant discipline — structural, mechanical, or civil — appropriate to the component being assessed. Strata corporations and buyers should verify the engineer's qualifications and registration, as reports prepared by unregistered practitioners may not carry professional liability or meet the standard of care required for significant repair decisions.

Before removing subject conditions, a buyer should obtain and thoroughly read the engineer's report to understand the nature of the deficiency, the engineer's recommended remediation, and the estimated cost of repairs. The buyer should also review the strata corporation's financial statements and Form B under the Strata Property Act (SBC 1998, c. 43) to determine whether the contingency reserve fund can absorb the repair cost or whether a special levy is anticipated. Given the complexity of structural or mechanical deficiencies, the buyer may wish to retain their own independent engineer or legal counsel to assess the report's findings before waiving any subject conditions, as the real estate licensee's duty under RESA is to inform and facilitate informed decision-making, not to provide engineering or legal advice.