Strata Property Act Changes – Depreciation Report Requirements

As of December 13, 2011, there are immediate changes that impact depreciation reports, which help strata corporations plan for future maintenance and repair costs. These reports are now mandatory unless a strata corporation is exempted by a 3/4 vote of the owners or has less than 5 strata lots, and must be prepared by a “qualified person” as defined in the regulations. The depreciation reports must contain a physical inventory of the common property, a 30 year projection of anticipated maintenance, repair and replacement costs for common expenses, and a financial forecasting section.

Strata corporations have 2 years to comply with these new requirements. Afterwards, strata corporations will be required to update their depreciation reports every three years. Copies of these reports, as well as reports relating to the repair or maintenance of major items in the corporation, must now be kept by the corporation.

Effective December 13, 2011, a strata corporation’s most recent depreciation report must be attached to any Information Certificate provided by that strata corporation. In addition to the depreciation report, as of March 1, 2012, the following items must be attached to an Information Certificate: the rules of the strata corporation, the current budget of the strata corporation, and the rental disclosure statement.

Changes to the actual form of the Information Certificate will take effect on January 1, 2014 which will be amended to better identify how parking and storage lockers are allocated among strata property lots.

For more information or questions please contact Pushor Mitchell Partner Brad Cronquist at cronquist@pushormitchell.com or (250) 869-1150.