Strata Depreciation Reports in BC (2026): What Buyers Must Check

When you buy a condo or townhouse in BC, you are not just buying your unit; you are buying a share of the whole building and its future repair bills. The single best document for seeing what is coming is the strata depreciation report. Skipping it is how buyers get hit with a surprise special levy of tens of thousands of dollars a year after moving in. Here is how to read it.

What is a depreciation report?

A depreciation report (sometimes called a reserve fund study) is a long-term plan for a strata's major common components: the roof, elevators, plumbing, windows, exterior, parking, and more. It estimates:

• The remaining life of each major component.
• The cost to repair or replace each one.
• A funding plan over roughly 30 years to pay for it all.

In short, it is the building's financial future, laid out.

Key takeaway: The depreciation report tells you what major repairs are coming and whether the strata has saved enough (the contingency reserve fund) to pay for them. A big repair with a small reserve means a special levy is likely, and you would help pay it. Always read it before buying.

Why it matters so much to buyers

Two buildings can look identical from the lobby, but one has a healthy reserve fund and a solid plan, and the other is heading for a large special levy (a one-time charge split among all owners). The depreciation report is how you tell them apart before you buy, not after. A single special levy can run many thousands of dollars per unit.

The contingency reserve fund (CRF)

The contingency reserve fund is the strata's savings account for big repairs. When reading the report, compare:

• The repairs coming up in the next few years, and
• The money in the reserve fund to cover them.

A large roof or plumbing replacement due soon, with a thin reserve fund, is a red flag: expect a special levy. A well-funded reserve with a realistic plan is a green flag.

Read it alongside the other strata documents

The depreciation report is one piece. Read it with the rest of the strata documents: the meeting minutes (which reveal ongoing problems and planned levies), the financial statements, and the bylaws. Together they tell you whether the building is well run.

What to look for

• [ ] When are the big-ticket repairs (roof, elevators, plumbing, envelope) due?
• [ ] Is the reserve fund large enough to cover them?
• [ ] Has a special levy already been discussed in the minutes?
• [ ] Is the report recent, or badly out of date?
• [ ] Does the funding plan look realistic, or does it assume large future top-ups?

Frequently asked questions

What is a strata depreciation report? A long-term plan (about 30 years) estimating the remaining life, replacement cost, and funding for a strata's major common components like the roof, elevators, and plumbing. It shows the building's financial future.

Why should I read it before buying a condo? Because it reveals upcoming major repairs and whether the strata has saved enough to pay for them. If a big repair is due and the reserve fund is thin, a special levy is likely, and as an owner you would help pay it.

What is a special levy? A one-time charge split among all owners to fund a repair the reserve fund cannot cover. It can be many thousands of dollars per unit, which is why the depreciation report is so important to check first.

What is the contingency reserve fund? The strata's savings account for major repairs. Compare the upcoming repairs in the depreciation report against the money in this fund. A big gap points to a likely special levy.

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Buying a condo or townhouse and want the strata documents reviewed properly? Talk to Phan, a bilingual Metro Vancouver REALTOR with Sutton Group West Coast who can help you spot the red flags before you commit, in Vietnamese or English.