Strata Property Act Amendments effective December 2013
Feb.11, 2012
Strata Property Act Amendments effective December 2013
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By December 2013, all strata building needs to have a Depreciation Reports for maintenance purpose.
Depreciation reports which estimate the repair, the replacement cost & the expected life of major item will be required.
It must be prepared by a qualified person who has the knowledge & expertise to understand not just inspecting the strata building but that the strata corporation is responsible to maintain or repair under the Act & prepare a depreciation report that complies with the Act. The professional teams could involve contractor, engineer, accountants. Here are the major items:
- Building structure
- Building exterior including roof, roof decks doors, windows skylights
- Building systems including electrical, heating, plumbing, fire protection, security
- common amenities
- parking facilities & roadways
- Utilities, including water & sewage
- Landscaping, paths sidewalks, fencing irrigation
- interior finishes including floor covering & furnishings
- Green building components
- Balconies & patios
The report must also include a financial forecast on anticipating maintenance, repair & replacement costs for all the major items.
Which buildings could have the exemption:
1) the owners have passed a resolution approved by a 3/4 vote that waives the requirement.
2) the Strata Corporation has fewer than 5 Strata Lots.
Potential value depreciation: Should owners of the building vote against preparing this depreciation report, there is a great potential that buyers might not wanting to buy into this building. Banks might not want to fund the buyer who wants to buy into the building.
By March 1st, 2012, all Form B is required the attachment of "most recent Depreciation Report, if any".
Alberta strata buildings have been providing this depreciation report for a long time. It is actually very good for the building & maintaining the value of the building for the owners. In my opinion, this will definitely reduce the potential special levy on major repairs. Prevention is better than cure. Buyer always like to buy well maintain property regardless it is strata or detached house.
Tina Mak Personal Real Estate Corporation
Vancouver Radio Realtor AM1320
www.TinaMak.com
www.Tina Mak.ca 温哥华中文地產網站
www.GenYrealestate.ca
604-412-5860
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