BC Strata's Can No Longer Avoid Depreciation Reports

For years, many BC strata corporations postponed depreciation reports with an annual vote and hoped major repair issues could wait.

That era is ending.

BC strata property depreciation report regulations are now mandatory, eliminating the old ¾ vote deferral loophole. Strata corporations with 5 or more lots in Metro Vancouver, the Fraser Valley, and the Capital Regional District must have obtained a current report by July 1, 2026. Subsequent updates are required every 5 years.

The 2026 milestone is significant because:

• Lenders increasingly require updated depreciation reports for refinancing
• Buyers and realtors actively request recent depreciation reports
• Insurance providers review reserve fund health more closely

As new deadlines approach, many stratas are discovering uncomfortable realities about aging buildings, underfunded contingency reserve funds, and looming repair costs.

For some owners, the first warning sign comes in the form of a special levy.

For others, it appears during a sale, when buyers, lenders, and insurers begin scrutinizing the financial health of the building more closely than ever before.

Depreciation reports are no longer just technical planning documents. They are becoming central to how strata corporations manage risk, budget for repairs, and make decisions about the future of the property.

There are increasing disputes involving:

• inadequate reserve funds;
• delayed maintenance;
• disagreements over repair priorities;
• special levies;
• disclosure obligations during sales;
• and allegations that strata councils failed to properly plan for foreseeable expenses.

For strata councils, failing to address long-term repair planning can create significant legal and financial exposure. For owners, understanding the condition and financial stability of a strata corporation has never been more important.

The legal and practical landscape around depreciation reports is changing quickly. Strata corporations that wait too long to confront these issues often face more expensive and more contentious problems later.

This blog post provides general information and is not intended as legal advice. Laws change frequently, please contact DuMoulin Boskovich LLP for advice specific to your situation.