Depreciation Reports (a.k.a Contingency Reserve Fund Study):
On December 13, 2011 new regulations came into effect requiring all buildings comprising of 5 or more strata lots, to obtain a Depreciation Report from a "qualified person" by Dec. 13, 2013.
Strata corporations can by way of 3/4 votes at an Annual General Meeting, or a Special General Meeting, choose to not conduct such reporting; with this having to be revisited 18 months after the vote passes.
What is a Contingency Reserve Fund (CRF):
CRF is a portion of the maintenance fee contributions of owners in a Strata Corporation, which is usually used in the case of emergencies and in maintenance required less than once a year.
This study is a planning tools to predict the funds required for proper maintenance and addressing of predictable capital replacements.
As a part of this study, the company hired to conduct this task, usually sends out a questionnaire to owners in an effort to understand the condition of the building.
As an owner, it is highly recommended to take this seriously and to contribute with information so that this study can be as accurate as possible. It is crucial for your investment.
If you have any questions or clarification regarding the Depreciation Report, feel free to contact me.