BC Strata Depreciation Report Guide 2026
As of July 1, 2026, every strata building in BC with 5 or more units must have a current depreciation report. If you are buying a condo in Vancouver, this document tells you whether the building can afford its future repairs — or whether you will face unexpected extra costs after you move in.
What this guide covers: What a strata depreciation report is, why it is now mandatory in BC, how to read the three funding scenarios, how to check whether the reserve fund is healthy, what red flags to look for, and how this connects to special levy risk. Written by Greyden Douglas, Vancouver REALTOR® since 2006, who reviews strata documents on every condo purchase.
Written by Greyden Douglas — Vancouver REALTOR®, Medallion Club Member (top 10%)
Rain City Properties · Licensed since 2006 · 1,000+ clients · Updated July 2026
Greyden has reviewed hundreds of strata document packages for buyers across Metro Vancouver. He holds active membership in GVR, BCFSA, and CREA. This guide explains what the depreciation report tells you and what to watch out for — always work with a licensed REALTOR® and lawyer during your subject removal period.
What Is a Strata Depreciation Report?
A strata depreciation report is an official document that assesses the physical condition of a strata building and estimates the cost of maintaining and replacing all major parts over the next 30 years. It is prepared by a qualified professional — usually a licensed engineer, architect, or applied science technologist.
The report covers every major part of the building: the roof, exterior walls and windows (called the building envelope), elevators, plumbing and drainage, electrical systems, heating and ventilation, parking structure, and common areas such as hallways, lobbies, and amenity rooms.
For each part, the report records:
Current condition
Is the part in good condition, average condition, or showing signs of wear?
Remaining useful life
How many more years before this part needs to be replaced or significantly repaired?
Estimated replacement cost
In today's dollars (and inflation-adjusted future dollars), what will it cost to replace or repair this part?
Recommended savings amount
How much should the strata set aside each year so the money is ready when the repair is needed?
Why this matters for you as a buyer
The depreciation report tells you whether the building has been saving enough money to pay for future repairs. If the savings account (called the contingency reserve fund, or CRF) is low relative to what the report recommends, you may face a "special levy" — an extra charge you must pay as an owner — when a major repair comes due. This can easily run from $5,000 to $50,000 or more per unit.
Why Did BC Make Depreciation Reports Mandatory in 2026?
BC's Strata Property Act has required most strata corporations to have a depreciation report since 2013. However, a loophole allowed strata owners to vote — by a 75% majority — to waive the report for another year. Many buildings used this vote to avoid the cost of commissioning a report, sometimes for a decade or more.
BC's updated Strata Property Regulation, which came into full effect on July 1, 2026, permanently removed this waiver option. Now, all strata corporations with 5 or more strata lots in Metro Vancouver, the Fraser Valley Regional District, and the Capital Regional District must have a current depreciation report — no exceptions, no votes to delay.
Who must have a report
- ✓ Strata corporations with 5 or more strata lots anywhere in Metro Vancouver
- ✓ Strata corporations in the Fraser Valley Regional District with 5 or more units
- ✓ Strata corporations in the Capital Regional District (Victoria area) with 5 or more units
- ✓ Both residential and mixed-use strata buildings that meet the unit threshold
- ✓ New buildings: the report is due within 2 years after the strata is first registered
Reports must be updated every 5 years. A report older than 5 years is out of compliance with BC law, and you should treat it as a red flag when reviewing a condo purchase. For the official regulation text, see the BC Government depreciation report page.
The Three Funding Scenarios: What They Mean for Buyers
Every depreciation report must present three different savings plans — called funding scenarios — so the strata can choose how much to contribute to the contingency reserve fund (CRF) each year. The scenario the strata chose tells you a lot about how financially careful the building is.
Scenario 1 — No Funding (Minimum Contributions)
Highest riskThe strata keeps contributions as low as legally possible. Money is only put in the CRF when required. This is the riskiest model for buyers because the strata is unlikely to have enough money when major repairs arrive. If you see this as the active plan, large special levies are very likely.
Scenario 2 — Threshold Funding
Moderate riskThe strata keeps the CRF above a minimum balance at all times. Contributions are moderate. This is the most common model. The risk is moderate — check how close the current balance is to the threshold and what major work is coming up.
Scenario 3 — Fully Funded
Lowest riskThe strata aims to always have the full recommended CRF balance. Contributions are higher, but special levy risk is lowest. If a building uses this model and keeps the CRF at 90–100% of the recommended level, that is the best possible outcome for a buyer.
How to find which scenario the strata chose
Look for a section in the report called "Recommended Funding Plan," "Adopted Funding Model," or "Strata Council Resolution." The minutes from the most recent Annual General Meeting (AGM) may also confirm which scenario was voted on. If you cannot find this information, ask your agent to request it from the listing agent.
How to Read a Depreciation Report Before Making an Offer
You typically receive the depreciation report as part of your strata document package after making a subject offer. Here is a step-by-step process for reviewing it efficiently before your subject removal deadline.
Check the date of the report
Look at the cover page for when the report was prepared. Under BC law, the report must be no more than 5 years old. If it is older, the strata is out of compliance and the data may no longer reflect actual costs or component conditions. Request a current report before you remove subjects.
Find which funding scenario the strata adopted
The report will show three funding scenarios (Scenario 1, 2, or 3 — explained below). Look for the section that tells you which scenario the strata council chose as its active plan. Scenario 3 (fully funded) is best for buyers; Scenario 1 (no-funding) is a serious warning sign.
Compare the actual CRF balance to the recommended balance
The Form B will tell you the current contingency reserve fund (CRF) balance. The depreciation report will tell you what the recommended balance should be under the chosen funding scenario. Divide the actual balance by the recommended balance and multiply by 100 to get the funding percentage. Below 70% is worth examining closely; below 50% is a warning sign; below 30% is a red flag.
Find the 5-year and 10-year repair cost totals
Look for the table that summarizes all major components and their next replacement or repair dates. Add up everything due in the next 5 years and the next 10 years. Compare those totals to the current CRF balance and the projected CRF balance at those dates. If projected repairs significantly exceed the projected CRF balance, a special levy is likely.
Read the building envelope section carefully
The envelope section covers the outer shell of the building: cladding, windows, roof, balconies, and flashings. This is almost always the most expensive category. Note the estimated remaining life of each envelope component and the estimated replacement cost. If major envelope work is due within 10 years, check whether the CRF model has enough savings to cover it.
Note any items flagged as "poor condition" or "immediate repair needed"
Some reports include condition ratings for each component. Any item listed as poor condition, critical, or requiring immediate repair is a cost that must be paid soon — possibly before the next 5-year report update. Ask your agent to request additional information on these items from the seller.
Reserve Fund Health: What Each Funding Level Means
Once you know the current CRF balance and the report's recommended balance, divide the actual by the recommended and multiply by 100. The result is the funding percentage. Use this table to understand what it means for you as a buyer.
| CRF Funding Level | What It Means | What You Should Do |
|---|---|---|
| 90–100% | Fully funded. The building is saving at the rate the report recommends. This is the best outcome. | No concern. Proceed normally. |
| 70–89% | Well funded. A small gap from the ideal — common and manageable in most buildings. | Check what major repairs are due in the next 5–10 years to confirm the gap won't cause problems. |
| 50–69% | Underfunded. Strata fee increases are likely in the next 2–4 years. | Check the strata's annual CRF contribution plan and compare it to the report's recommendation. |
| 30–49% | Significantly underfunded. A special levy is likely within 3–5 years unless contributions increase a lot. | Request the current annual CRF plan. Factor potential levy costs into your offer price. |
| Below 30% | Serious warning. The building is not saving nearly enough for projected repairs. | Expect a large special levy or major fee increases. Negotiate the price accordingly, or consider walking away. |
Percentages are calculated by dividing the actual CRF balance by the recommended balance under the strata's chosen funding scenario. Always compare both numbers from documents dated within the same time period — use the Form B for the actual balance and the most recent depreciation report for the recommended balance.
Red Flags Checklist: When to Be Concerned
These are the most important warning signs to check in any strata depreciation report. One red flag does not automatically mean you should not buy — but each one requires a clear answer before you remove your subjects.
Report is more than 5 years old
High riskBC law requires stratas to update the report every 5 years. An old report means the building's financial picture has not been formally reviewed recently. Treat this as non-compliance.
Strata chose Scenario 1 (no-funding model) as its plan
High riskScenario 1 assumes the strata puts almost nothing into the reserve. This almost guarantees large special levies when repairs arrive. Check the minutes to see if this is still the active plan.
Contingency reserve fund is below 50% of the recommended balance
High riskThe strata is not saving nearly enough. A large fee increase or special levy is very likely within 3–5 years, especially if any major work is due soon.
Building was built between 1985 and 2000
High riskThis is BC's "leaky condo" era. Many buildings from this period had serious water damage from envelope failures. The depreciation report's envelope section deserves extra scrutiny.
Building envelope listed as needing repair in the next 5–10 years with no savings
High riskEnvelope work (outer cladding, windows, balconies, roof membrane) is the most expensive repair a condo building can face. If it is due soon and the CRF is underfunded, expect a large special levy.
Heating system or elevator listed as "end of life" or past expected service life
Watch closelyThese systems are expensive to replace. If the report says they should already have been replaced, the strata is running on borrowed time and the cost has not been dealt with.
Multiple items listed as "deferred" across two or more report cycles
Watch closelyWhen the same items keep getting pushed forward, it means the strata cannot afford to fix them. The bill is growing larger every year the repair is delayed.
No report available at all
High riskAfter July 1, 2026, every 5+ unit strata must have a report. If none exists, the building is out of compliance with BC law. This is a serious red flag — walk away or negotiate a large discount.
Special Levy Risk: What Triggers One and How to Estimate Your Exposure
A special levy — also called a special assessment — is an extra charge that the strata collects from all unit owners to pay for a major repair that the contingency reserve fund (CRF) cannot fully cover. Unlike your regular monthly strata fee, a special levy is a one-time payment, often due within 60–90 days of the vote.
Common causes of special levies in Vancouver condo buildings include: roof replacement, building envelope repairs (windows, cladding, balconies), elevator modernization, seismic upgrades, and parkade waterproofing.
How a special levy is approved
A special levy requires a vote at a general meeting. For amounts greater than $1,000 per unit, a 75% majority of owners must agree. For smaller amounts, a simple majority is enough. Owners who vote against the levy are still legally required to pay once the vote passes.
How to estimate your risk before buying
- 1 Find the estimated cost of the largest repair due in the next 10 years (usually in the depreciation report's summary table).
- 2 Find the projected CRF balance at the time that repair is due (the report's funding model projections will show this).
- 3 Subtract the projected CRF balance from the repair cost. The difference is the potential shortfall.
- 4 Divide the shortfall by the number of strata lots. The result is the rough special levy exposure per unit.
- 5 Check the strata meeting minutes to see if a levy or fee increase has already been discussed.
Example calculation
A 40-unit building has a roof replacement estimated at $600,000 due in 5 years. The report projects the CRF will hold $200,000 at that point. The shortfall is $400,000. Divided by 40 units, that is roughly $10,000 per unit in potential special levy exposure — on top of regular strata fees. If you knew this before making your offer, you would either negotiate $10,000 off the price or walk away, not discover it after you own the unit.
Form B vs Depreciation Report: What Each One Tells You
Buyers often receive both a Form B Information Certificate and a depreciation report. These are two different documents that answer different questions. You need both — neither one alone is enough.
| Question | Form B tells you | Depreciation report tells you |
|---|---|---|
| Current CRF balance | Yes — the actual dollar amount today | The recommended balance (to compare against) |
| Approved special levies | Yes — must list any approved levies | No — only shows estimated future need, not approved levies |
| Building component condition | No | Yes — condition and remaining life of each major component |
| Future repair costs | No | Yes — 30-year cost projections for every major system |
| Whether the CRF is adequate | Partial — gives you the balance but not the benchmark | Yes — shows the recommended balance and whether the strata is on track |
| Monthly strata fee | Yes | No |
| Legal proceedings against the strata | Yes — must disclose any active proceedings | No |
| Strata bylaws | Yes — a copy must be attached | No |
For a full walkthrough of the Form B and all other strata documents, see our Vancouver Strata Document Review Guide.
Not sure what the depreciation report is telling you?
Greyden reviews strata documents on every condo purchase and explains the numbers in plain English. Talk to him before subjects come off.
Strata Depreciation Report FAQs
What is a strata depreciation report in BC?
A strata depreciation report is an official document that lists all the major parts of a strata building — roof, plumbing, elevators, windows, parking structure, and more — and estimates how much each part will cost to replace over the next 30 years. It also shows three savings plans so the strata knows how much to set aside each year in its contingency reserve fund (CRF). BC law requires this report for all strata corporations with 5 or more units, updated every 5 years.
Is a strata depreciation report mandatory in BC in 2026?
Yes. As of July 1, 2026, all strata corporations with 5 or more strata lots in Metro Vancouver, the Fraser Valley Regional District, and the Capital Regional District must have a current depreciation report. The old rule that allowed a 75% owner vote to delay the report has been removed. Reports must be updated every 5 years by a qualified professional.
What is the contingency reserve fund and why does it matter when buying a condo?
The contingency reserve fund (CRF) is the strata's savings account for future major repairs. Every owner contributes to it through monthly strata fees. The depreciation report recommends how much the CRF should hold. If the actual balance is much lower than the recommended amount, the strata may not have enough money to pay for future repairs without charging all owners a large extra amount — called a special levy. As a buyer, you need to compare the actual CRF balance on the Form B against the recommended balance in the depreciation report.
What are the biggest red flags in a strata depreciation report?
The biggest red flags are: (1) The report is more than 5 years old — it is out of compliance. (2) The strata chose the no-funding or minimum savings scenario as its active plan. (3) The contingency reserve fund holds less than 50% of the recommended balance. (4) The building was constructed between 1985 and 2000 (the "leaky condo" era in BC). (5) The building envelope is listed as needing major repair in the next 5–10 years with no savings set aside.
What is a special levy and how do I know if one is coming?
A special levy is an extra, one-time payment charged to all strata owners — beyond regular monthly fees — to pay for a major repair the contingency reserve fund cannot cover. A 75% owner vote is required for levies over $1,000 per unit. To check for upcoming levies: read the Form B (it must list any approved levies) and read the strata meeting minutes (you may see discussions about a potential levy before it is officially voted on).
Related Guides
Written by Greyden Douglas — Vancouver REALTOR®, PREC*, Licensed since 2006
Rain City Properties · Oakwyn Realty · GVR, CREA & BCFSA Licensed · Updated July 2026
Greyden reviews strata documents on every condo purchase and explains what the depreciation report numbers mean in plain language. He has flagged underfunded reserves, upcoming special levies, and building envelope concerns that have saved clients from costly surprises.
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