“Thousands of BC stratas used the deferral provision to avoid the cost — often to the detriment of future buyers.”
What Changed
British Columbia's Strata Property Amendment Act eliminated the annual vote that previously allowed strata corporations to defer obtaining a depreciation report. Starting July 1, 2024 (with a phased Metro Vancouver deadline of July 1, 2026), all BC strata corporations with 5 or more strata lots are required to have a current depreciation report, renewed every five years.
Previously, a ¾ vote at an annual general meeting could indefinitely push a depreciation report to the following year. Thousands of BC stratas used this provision to avoid the cost — often to the detriment of future buyers who had no visibility into long-term repair needs.
What Is a Depreciation Report?
A depreciation report (also called a reserve fund study) is a professional assessment of a strata corporation's common property, common assets, and limited common property. It projects the expected remaining life, current condition, and repair or replacement cost of major components — roofs, elevators, plumbing, parkade, windows, and more — typically over a 30-year horizon.
Metro Vancouver Deadline: July 1, 2026
Strata corporations in the Metro Vancouver Regional District that did not previously have a depreciation report, or whose report is more than 5 years old, must obtain one by July 1, 2026.
What This Means for BC Strata Buyers
If you're buying a strata unit in Metro Vancouver, Greater Victoria, or anywhere in BC, the presence and quality of the depreciation report is now a mandatory due diligence item:
- Request the most recent depreciation report as part of your strata documents package (Form B and strata package).
- Confirm it is dated within the last five years.
- Review the reserve fund balance against the report's recommended contributions.
- Pay attention to the report's "fully funded" vs. "threshold" vs. "baseline" scenarios.
Pellucis extracts, summarizes, and scores the depreciation report as part of every BC strata review — surfacing underfunding risk, upcoming major repair items, and reserve fund health.
Source: www.bclaws.gov.bc.ca