Welcome to Victoria Real Estate Fred Carver Remax Camosun Sign in | Help

Victoria BC Real Estate Blog

Victoria Find the latestest real estate news and stats on real estate activity in Victoria, current luxury,waterfront and view home for sale, feature properties for sale on the market in Greater Victoria BC

Syndication

Tags

News

Latest Market Conditions and luxurious homes for sale in Victoria BC

Active Rain

STRATA OWNERS WHAT ARE STRATA DEPRECIATION REPORTS

STRATA OWNERS WHAT ARE STRATA DEPRECIATION REPORTS

Victoria Condos What are Depreciation Reports

Back in December 14, 2011 under the BC Strata Property Act, new requirements came into effect for Depreciation Reports.

 



If you are searching for a Victoria Condo or Townhouse you have come to the right place.

So what is the purpose of a Depreciation Report: The report helps strata corporations plan for maintenance, repairs,and replacement of common property, limited common property and common assets.

The Depreciation Report must contain:

  • Physical Inventory of the common property and including building systems
  • Expected or anticipated maintenance repairs, and replacement costs over 30 years.
  • a financial forecast that contains at least 3 cash flow funding models for the contingency reserve fund of a strata corporation.

These reports provide useful information to Strata owners and help prospective purchasers, mortgage lenders and insurance companies.

Strata corporations not required to do a depreciation report

  1. Strata corporations with 4 or less Units
  2. Strata corporations the vote to exempt themselves by passing ¾ Vote, if the corporation does not pass another waiver the following year, the strata corporation would be required to obtain a report within 18 months of the previously passed waiver vote.


Depreciation Report Updates

These reports must be renewed every 3 years.

What must be included in these Depreciation Reports: Victoria Condos What Are Depreciation reports
Read Guide 12: Strata Property Act-Page 2

  • Building structure
  • Building exterior
  • Building systems i.e electrical, plumbing, heating, fire protection & security etc
  • Common amenities example pool, exercise room, guest house
  • Parking and roadway
  • Utilities, ie water and sewage
  • Landscaping including sidewalks, fencing and irrigation
  • Interior finishes, floor coverings and furnishings
  • Balconies and patios
  • Green building components
     

And a Financial forecasting that includes

  • Projection for anticipated repairs and maintenance, repair and replacement cost for 30 years
  • at least 3 cash flow funding models over 30 years
  • a current balance of the contingency reserve fund and how it is funded.


A Summary detail of the repair and maintenance work to be done over 30 years

Date of the Report and qualifications of the author of the report and relationship if any with the strata corporation and information regarding errors and omissions insurance

Any and all appropriate information and analysis

The Report must identify those parts of the common property and limited common property, if any, that each individual owners are responsible to repair and maintain.

For more Details see the BC Strata Property Act Guide 12  regarding depreciation reports, contingency reserve funds and special levies.

Seek independent advice on any questions you may have regarding a strata depreciation report before purchasing or selling a Victoria Condo or Townhouse..


Published Thursday, November 08, 2012 2:41 PM by Fred Carver Personal Real Estate Corporation

Comment Notification

Subscribe to this post's comments using RSS

Comments

No Comments

Leave a Comment

(required)
required
(required)