Check the date and scope
Ask whether a newer report is available.
- Look at the components covered, assumptions and recommended work.
- Read it alongside current strata records.
More on check the date and scope
Forecasts are planning estimates, not guaranteed repair dates or invoices.
Compare forecasts with completed work
Find out what has happened since the report was prepared.
- Request records of completed projects and newer assessments.
- Check decisions about funding.
More on compare forecasts with completed work
Ask a specialist about technical issues that could affect your purchase.
The basics
A 30-year look at the building
A depreciation report is a long-range repair and funding plan. A qualified professional lists the building’s major parts, such as roofs, windows, elevators and pipes. They estimate when each will need repair or replacement, and roughly what it may cost.
The report then projects costs over 30 years and offers at least three funding models. Each shows a different way to pay through the contingency reserve fund. Owners can use it to avoid surprise levies.
Why it matters
Why buyers should read it
The report shows what big costs may be ahead and whether the strata is saving for them. A building with a large gap between its reserve and its forecast costs may need higher fees or special levies.
The rules have tightened. Since July 1, 2024, stratas with five or more lots can no longer vote each year to skip the report. They must get one on a five-year cycle.
How it works
Reading a depreciation report
Check the date and preparer
Note when it was done and the preparer’s qualifications. The report must show both.
Read the executive summary
It condenses the main findings and funding options in a few pages.
Scan the component list
Look at each major part, its condition and its estimated remaining life. Mark anything due within your expected years of ownership.
Compare the funding models
See which model the strata seems to follow and how fees or levies would change under each.
Match it to the minutes
Check whether owners approved the suggested work. The BC government notes that CRF spending on report-recommended repairs needs only a majority vote.
Ask about updates
If the report is old or major work has happened since, ask for newer reports or engineering studies.
Avoid these
Ways buyers misread these reports
Treating estimates as invoices
Costs and timing are forecasts. Actual work may cost more or happen sooner.
Skipping the funding models
The component list shows what wears out. The models show how owners will pay. Read both.
Assuming no report means no problems
Small stratas with four or fewer lots are exempt. That means less information, not fewer repairs.
Ignoring the CRF trend
Compare the current reserve with what the chosen model said it should be by now.
Example
Forecast, decision, completion
Illustration only. Track each big item through three stages using a simple table like this one.
| Item | Roof membrane |
|---|---|
| Forecast (depreciation report) | Replacement suggested within five years |
| Decision (minutes) | Owners approved CRF funding at the last AGM |
| Completion (records) | Contract signed; work scheduled for next summer |
| Open question | Is the approved amount enough, or might a levy follow? |
Fill a row for each major item due soon. Gaps between columns are your questions. See fees vs special levies for how shortfalls are funded.
Questions to ask
Questions about the report
The strata or property manager
- When was the current report done, and when is the next due?
- Which funding model has the strata adopted?
- What major work has been done since the report?
- Has a newer engineering study been commissioned?
Your agent
- Do the minutes show owners following the report’s advice?
- Which items are forecast in the next five years?
A building professional you hire
- Does the report’s timeline for this item match what you see?
- What would you check further before I buy?
FAQ
Common questions
Which stratas need a depreciation report?
In BC, strata corporations with five or more lots, including bare land stratas, must get one on a five-year cycle. Stratas with four or fewer lots are exempt.
Can a strata still skip its depreciation report?
Not anymore. Since July 1, 2024, stratas can no longer hold an annual 3/4 vote to defer it. In Metro Vancouver and the Fraser Valley, stratas with no report, or one received before December 31, 2020, had until July 1, 2026 to get one.
Who can prepare a depreciation report?
Only qualified professionals, such as engineers, architects, accredited appraisers, certified reserve planners and quantity surveyors. The report must state the preparer’s qualifications.
Do buyers get a copy?
Yes. The most recent report, if any, must be attached to the Form B information certificate given to buyers.
What is inside a depreciation report?
A physical component inventory and evaluation, a financial forecast with at least three cash-flow funding models, and an executive summary. It also shows the current contingency reserve fund balance, the report date and the preparer’s qualifications.
A practical example
Separate forecasts from commitments
Make a small table with the report’s suggested work, more recent decisions and available evidence of completion.
- Ask about material differences or missing updates.
- Use this to focus a professional review and understand the questions that remain.
A planning report is most useful when read alongside what the strata has actually done.
A detail to keep in mind
Forecast timing and cost can change; a report should not be presented as a guaranteed future invoice.
Official information
Start with these resources, then confirm the details for your property and circumstances.
BC: strata documents for buyers and sellersGovernment of BC: Strata depreciation report requirementsGovernment of BC: The contingency reserve fund (CRF)Government of BC: Changes to strata legislationReference review: October 6, 2026