Is a Strata Depreciation Report Mandatory in British Columbia?

A depreciation report is a long-range repair and replacement plan for a strata building. For a buyer it shows what the building may need and how much money is set aside to pay for it. For an owner it affects fees and special levies.

Whether a strata must have one has changed in recent years. This article explains what a report covers, when the Strata Property Act requires it, and how to read the findings.

This article covers the law of British Columbia.

What a depreciation report covers

Under section 94(2) of the Strata Property Act, a strata corporation must obtain a depreciation report from a qualified person by the dates set in the regulations, estimating repair or replacement costs and the expected life of major items.

A report must contain a physical component inventory and evaluation with 30-year service-life estimates, a 30-year contingency reserve fund (CRF) cost projection, at least three 30-year cash-flow funding models, the CRF balance net of approved unspent expenditures, and an executive summary. The funding models can use the CRF, special levies, fee increases, borrowing or a combination, and the strata does not have to adopt any of them.

Since July 1, 2025 the report must come from one of six designated professional groups: engineers, architects and architectural technologists, applied science technologists, accredited appraisers, certified reserve planners, and quantity surveyors. The list was expanded on October 27, 2025 to include professional licensee engineers, architectural technologists and certified technicians.

When a report is required, and who can exempt a strata

Reports are required every five years for strata corporations with five or more lots, including bare land stratas. A strata with fewer than 5 lots is not subject to the requirement under Regulation section 6.22, so four-lot or smaller stratas need no report.

Owners used to be able to vote to defer. The old deferral provision in section 94(3) was repealed, and since July 1, 2024 an annual 3/4 vote can no longer be used to defer a report. For a strata of five or more lots, the practical answer is that owners cannot simply vote the requirement away.

The July 1, 2026 date has passed. If you are buying or own in one of those regions and the strata still has no current report, ask the council where it stands. From July 1, 2027, owner developers must contribute at least $5,000 plus $200 per lot, to a maximum of $30,000, toward the first report.

Who pays, and where buyers see it

The cost is a common expense of the operating fund. The operating fund covers expenses that occur once a year or more often, including obtaining a depreciation report. CRF money can also be spent on a depreciation report with a majority vote rather than a 3/4 vote.

The most recent report must be attached to the Form B given to buyers, and the strata must keep all depreciation reports.

How to read the findings

• Start with the executive summary, then the component inventory to see which items are near the end of their service life.
• Compare the CRF projection with the current CRF balance, net of approved unspent expenditures.
• Look at the funding models. A gap between the balance and projected costs suggests larger fees or special levies ahead, though the strata need not adopt any model.
• Check the date. A report dated before December 31, 2020 may not satisfy the transition rules.
• Note the annual CRF contribution. It must be at least 10% of the total budgeted operating fund contribution.

A special levy that divides costs by strata-fee share needs a 3/4 vote at an AGM or SGM. If a safety-related common property repair gets majority support but less than 3/4, the strata may apply to the BC Supreme Court for an order approving it.

What to do next

• Find out the number of lots and the strata's location to know which deadline applies.
• Ask for the latest report and its date, and read the executive summary.
• Compare the reserve balance with the 30-year projection.
• Check the minutes for plans to fund the gaps.
• Take anything unclear to your lawyer or accountant before you commit.

Frequently asked questions