Vancouver Realtor

Following the lead of other provinces and many U.S. states, the B.C. government now requires all strata properties greater than five units to have a common property depreciation report completed generally by the end of 2013 (December 13, 2013, to be exact).

Although the legislation requires that a depreciation report be completed, unlike other provinces, the legislation does not require that the funding requirements identified in the report be implemented. Therefore the strata remains in charge of what the reserve fund contributions will be.

The strata may also defer a depreciation report by passing a resolution with a three-quarters majority vote to that effect. However, the resolution to exempt the strata from preparing a depreciation report has an 18-month time limit, so the resolution must be re-passed by three-quarters vote on a periodic basis in order to continue to defer the report.

The legislation also requires that a depreciation report be completed every three years.

The main purpose and benefit of the depreciation study is to provide a long-range common property maintenance and renewals plan which, if followed, will maintain the value of the property. Ideally, owners will be prepared for anticipated future common property component and system deterioration though proactive planning instead of reactive response. It is generally assumed in the facility management industry that reactive repairs costs two to five times more as the same job would cost in a planned and scheduled environment. 

(By Jeff Besant and Jeff Renwick)

If you would like me to value your Vancouver condo for sale I would be delighted. Please call  Vancouver Realtor ® Russell Sharp on 604 437 4277.