Changes to Strata Depreciation Reports Coming in 2024

The provincial government has made changes to the Strata Property Act requiring strata corporations with five or more strata lots to obtain a depreciation report every five years.

As a professional REALTOR®, especially those who are licensed to provide strata management services, you should be familiar with the changes so you can provide accurate information and advice to your clients.

Depreciation reports provide a comprehensive assessment of the condition of strata properties and infrastructure to help in long-term financial planning and maintenance for strata corporations.

The new regulations close a loophole that previously allowed strata corporations to defer getting a deprecation report by way of an annual three-quarters vote.

Strata corporations must obtain a depreciation report from a list of qualified professionals.

These changes come into effect on July 1, 2024, with a number of transitional provisions that specify the dates by which various existing or new strata corporations must obtain deprecation reports.

Changes to the Strata Property Act will also require developers to provide new strata corporations established on or after July 1, 2027, with funding for depreciation reports — from a minimum of $5,000 to a maximum of $30,000.

For a more detailed look at changes to the Strata Property Act, visit the BC Government website.