How to Read a Strata Depreciation Report Before You Buy a Fraser Valley Condo

There's a moment in almost every condo purchase where a buyer gets handed a PDF that's eighty pages long, full of tables, and asks us, "Do I actually have to read this?" The depreciation report. And the honest answer is: this is the one document where we'd rather you read too much than too little.

Because here's what it really is. A depreciation report is the closest thing a first-time buyer gets to a glimpse of the future — specifically, the future repair bills. It tells you what's going to break, roughly when, and whether the building has been quietly saving up for it or quietly hoping it goes away. Get this part right and you avoid the worst surprise in strata ownership: the five-figure special levy that lands six months after you move in.

What changed in BC, and why it helps buyers

For years, BC stratas could wriggle out of getting a depreciation report by holding an annual vote to defer it. A lot of them did exactly that. That loophole is gone.

Since July 1, 2024, strata corporations with five or more lots must obtain a depreciation report on a five-year cycle, and the old annual three-quarters vote to keep deferring it has been removed. The Province of BC set hard deadlines: Metro Vancouver, the Fraser Valley, and the Capital Regional District — stratas without a current report (or one received before December 31, 2020) must obtain one by July 1, 2026. The rest of BC has until July 1, 2027.

For a buyer shopping the Fraser Valley condo market right now, this is immediate and local. The deadline applies directly to buildings in Surrey, Langley, Abbotsford, Mission, and the rest of the Fraser Valley — 35 days from when this was last updated. Buildings that have been dragging their feet are out of runway. If the seller can't produce a current depreciation report on any Fraser Valley strata unit, that gap is no longer a paperwork delay — it may mean the strata is non-compliant. Ask directly. It changes the due-diligence picture.

In our experience writing strata offers this spring, reports that were "being prepared" or "in process" have become a negotiating point. A building that should have this report and doesn't, five weeks before the deadline, is running behind on something the province required in 2024. That's worth noting in your offer strategy.

What's actually inside the report

A depreciation report has to cover the anticipated maintenance, repair, and replacement costs for common property projected over 30 years, along with the assumptions behind those numbers — interest rates, inflation rates, and so on. Crucially, it must include at least three cash-flow funding models for the contingency reserve fund over those 30 years.

Those funding models are the heart of it. They might mix some combination of: drawing from the contingency reserve fund, raising strata fees, levying special assessments, or borrowing. Each model shows a different way the strata could pay for the coming repairs. The report also states the current balance of the contingency reserve fund, minus anything already approved to be spent.

So when you open the report, you're looking at three things that matter to your wallet:

1. The list of major components and their expected replacement timing — roof, building envelope, windows, plumbing, elevators, parking membrane, boilers.
2. The current reserve fund balance and how it's being funded.
3. The funding models — and, more importantly, which one the strata is actually following.

How we read it for a first-time buyer

When we sit down with a buyer's depreciation report, we're not trying to become engineers. We're looking for the gap between what's coming and what's been saved. Here's the practical pass.

Start with the near-term repairs. Flip to the component list and find anything due for replacement in the next five to ten years. A roof, a building envelope (rainscreen), or a re-pipe due soon is a big number. A new lobby carpet is not.

Now check the reserve fund against those repairs. This is the whole game. A building with a $200,000 roof coming in three years and $90,000 in the reserve fund has a problem, and that problem will become your problem in the form of a special levy or a steep fee increase. A building with $400,000 saved and modest near-term repairs is in good shape.

Read which funding model the strata chose. A report can recommend a fully-funded model and the strata can choose to follow the bare-minimum one. The minutes will tell you what they actually voted for. A strata ignoring its own report's recommendation is a yellow flag.

Cross-check with recent minutes. The depreciation report is a snapshot in time; the strata meeting minutes are the running story. Look for words like "special levy," "envelope," "litigation," "water ingress," and "deferred." Those tell you whether the building's reality matches the report's tidy projections.

The special levy: the surprise you're trying to avoid

A special levy is a one-time charge to all owners for a major expense the regular budget and reserve fund can't cover. The cost gets split by unit entitlement, and depending on the project it can range from a couple of thousand dollars per unit to tens of thousands.

The reason a depreciation report is so valuable is that it lets you see a likely special levy coming before you buy, while you still have leverage. If the report shows a $1.5M envelope repair on the horizon and the reserve fund can't touch it, you have a real conversation to have: negotiate the price down, ask the seller to cover the assessment, or walk away. After you own the unit, you just pay your share.

We've watched buyers get blindsided by levies that were, in hindsight, sitting right there in a report they skimmed. We've also watched buyers negotiate thousands off a purchase price because the report gave them the ammunition. Same document, very different outcomes.

Why fees keep climbing — and why that's not all bad

A lot of Fraser Valley condo buyers notice strata fees rising faster than inflation and assume it's a bad sign. Often it's the opposite.

Part of the increase is a direct consequence of the new rules. Stratas now have to obtain and reckon with depreciation reports every five years, and a lot of those reports reveal reserve funds that have been underfunded for years. The honest response is to raise contributions to catch up. Add rising insurance premiums and contractor costs, and fees climb.

But a fee increase that's funding the reserve properly is protective. It's the building choosing to pay steadily over time instead of hitting you with a brutal special levy later. When we compare two similar units and one has a higher fee, we don't reflexively prefer the cheaper one — we look at which building is actually prepared for what's coming.

Don't waive your right to read it

The protection in all of this only works if you keep the right to act on what you find. That means writing your offer with a subject-to-review-of-strata-documents condition (alongside financing and inspection). During the subject-removal period — usually five to seven business days — you and your realtor read the depreciation report, the Form B, the bylaws, and the recent minutes. If something's wrong, you renegotiate or walk.

We never recommend a first-time buyer write a subject-free offer on a strata property. The Fraser Valley market in 2026 has enough inventory that you almost never need to, and the downside of skipping this review is exactly the five-figure surprise this whole document exists to prevent.

Key takeaways

• A depreciation report forecasts a strata's major repairs over 30 years and shows whether the reserve fund can cover them — it's a buyer's best look at future repair bills.
• BC tightened the rules in 2024: stratas with five or more lots must have a report on a five-year cycle. The July 1, 2026 catch-up deadline applies to Metro Vancouver, the Fraser Valley, and the Capital Regional District — not just Metro Vancouver. The rest of BC has until July 1, 2027.
• The single most important check is the gap between near-term major repairs and the current reserve fund balance — a big repair plus a thin reserve signals a likely special levy.
• Rising strata fees aren't automatically bad; a fee that funds the reserve properly is often safer than a cheap fee in a building deferring repairs.
• Always write your offer with a subject-to-strata-documents condition so you can act on what the report reveals.

Frequently Asked Questions

What is a strata depreciation report in BC?

A depreciation report is a professional forecast of a strata building's major repairs and replacements over the next 30 years, including estimated costs and at least three funding models. It tells a buyer what big-ticket items — roof, building envelope, plumbing, elevators — are coming and whether the strata is saving enough to pay for them.

Are depreciation reports mandatory in BC in 2026?

Yes, for most stratas. Since July 1, 2024, strata corporations with five or more lots must obtain a depreciation report on a five-year cycle and can no longer vote to defer it. Metro Vancouver, the Fraser Valley, and the Capital Regional District stratas without a current report must have one by July 1, 2026. The rest of BC has until July 1, 2027. Stratas with four or fewer lots remain exempt.

How often must a BC strata update its depreciation report?

Every five years, under the rules that took effect July 1, 2024. The old ability to hold an annual three-quarters vote to defer the report was removed, so buyers can now expect most qualifying stratas to keep a report on a regular cycle rather than skipping it indefinitely.

What is a special assessment or special levy?

A special levy is a one-time charge billed to strata owners for a major expense the regular budget and contingency reserve fund can't cover — like a roof replacement or building envelope repair. It's split among owners by unit entitlement and can run from a few thousand dollars to tens of thousands per unit.

What should a first-time buyer look for in a depreciation report?

Check the contingency reserve fund balance, the timing of major upcoming repairs (roof, envelope, plumbing, elevators), and which funding model the strata is actually following. A large repair due soon with a thin reserve fund signals a likely special levy — that's the single biggest red flag.

Can I get out of a condo purchase if the depreciation report is bad?

If your offer includes a subject-to-review-of-strata-documents condition, yes — you can walk away or renegotiate during the subject-removal period if the depreciation report reveals problems. This is exactly why we never recommend writing a subject-free offer on a strata property as a first-time buyer.

Does a strata have to give me the depreciation report?

When you have an accepted offer with a strata-document condition, the seller provides a Form B Information Certificate and the strata records, which should include the depreciation report. You can also request records directly. Always review the most recent report plus the last one or two years of strata meeting minutes.

Why are strata fees rising faster than inflation in BC?

Part of the increase comes from the new requirement that stratas obtain and act on depreciation reports every five years. Reports often reveal underfunded reserves, prompting stratas to raise fees or contributions to catch up. Rising insurance and contractor costs add to it. Higher fees today can actually mean lower special-levy risk tomorrow.

Is a building with high strata fees a bad buy?

Not necessarily. A higher fee that's funding the reserve properly is often safer than a low fee in a building that's deferring repairs. The question isn't whether the fee is high — it's whether the fee plus the reserve fund is adequate for the repairs the depreciation report forecasts. A cheap fee with a coming special levy is the worse deal.

Do new strata buildings need a depreciation report too?

Yes. New strata corporations established on or after July 1, 2024 must get their first depreciation report within two years of their first annual general meeting, then every five years. From July 1, 2027, developers must contribute toward that first report — a minimum of $5,000 plus $200 per lot, up to $30,000.

Sources

• Province of British Columbia — Strata depreciation report requirements
• Province of British Columbia — New regulations help close loopholes, protect strata owners (June 5, 2024)
• Province of British Columbia — The contingency reserve fund (CRF) in strata corporations
• Fraser Valley Real Estate Board — Monthly Market Report

Related guides

• Condos for sale in Surrey, BC — neighbourhoods, benchmark prices, and what strata fees really cost
• Townhomes for sale in Langley, BC — Willoughby, Walnut Grove, Brookswood breakdown
• Condo vs. townhouse in the Fraser Valley — strata exposure, space, and resale compared
• Writing a competitive offer in a buyer's market — when to use a depreciation-report subject

Data sourced May 27, 2026. The July 1, 2026 deadline applies to Fraser Valley, Metro Vancouver, and Capital Regional District stratas per the Province of BC. Strata rules and deadlines can change — verify current requirements at gov.bc.ca and review the actual strata documents for any property before making decisions. This is general information, not legal advice.

Next Steps: Work with FRIVE

The FRIVE team is a BC-licensed Fraser Valley real estate team. Reading strata documents for first-time buyers is a big part of what we do — we'll flag the reserve-fund gaps, the looming repairs, and the lines in the minutes that matter, before you remove subjects.

Get in touch with the FRIVE team — start a conversation, learn more about buying your first home, or browse current Fraser Valley listings.