“Morrison Hershfield has provided me with peace of mind, during the eight years of consulting services for our strata property. As a long-term council member, and now as an engaged owner, I can always rely on Morrison Hershfield’s extremely capable and dedicated personnel to ensure our strata property has the necessary input for the maintenance, repair, and the imperative consulting for major replacement projects.
Their ability to clearly identify and explain options, to a layperson person like myself, significantly assists with the complexities of decisions required by Stratas today.
No matter what the project, from our Building Envelope Repair to providing Maintenance & Repair Manuals, to our Yearly & Warranty Reviews, I have experienced keen and responsive attention to our specific needs. They have now just completed our Reserve Study and were the “go to” engineering consultants for our recent Re-Piping Project.
I am convinced that this long, successful relationship with Morrison Hershfield, has proven to be not only cost effective for the owners, but also it has made a strong contribution to the increases to the market values of our Strata property.”
Mayfair House Vancouver
BC Strata Act Regulations and Legislation
Read Bill 8 of the Strata Property Amendment Act, 2009.
Did you know?
- Strata Corporations of less than five units are exempt from preparing a depreciation report.
- All other strata are required to provide a depreciation report unless the strata corporation passes a three-quarters vote to exempt themselves on an annual basis.
- Strata are required to provide a depreciation report by December 13, 2013; or three years after a previously valid depreciation report; or eighteen months after a successful three-quarter vote to exempt if the subsequent vote fails.
- Once prepared, the depreciation report is required to be attached to Form B, Information Certificate Section 59. This Information is passed on to potential buyers, their mortgage provider or mortgage insurer etc.
- The depreciation report must be prepared by a qualified person, defined in the Act as “any person who has the knowledge and expertise to understand the individual components, scope and complexity of the strata corporation’s common property, common assets and those parts of a strata lot or limited common property, or both, that the strata corporation is responsible for maintaining or repairing under the Act, the strata corporation’s bylaws or an agreement with an owner and to prepare a depreciation report that complies with subsections (1) to (4)” (of Section 94).
- The act requires the name of the person from whom the depreciation report was obtained along with their qualifications, their relationship with the strata corporation and the error and omission insurance, if any, carried.
Typical Scope of Services
Once engaged to prepare a depreciation report, Morrison Hershfield will perform the following tasks:
- Review documentation including drawings, past maintenance records and financial statements.
- Perform a physical analysis of the common building components to determine their current condition, expected replacement costs and remaining life expectancies in accordance with 6.2(2) of Section 94 of the Act.
- Provide a 30-year forecast of anticipated expenditures for common property.
- Perform a financial analysis to produce three funding scenarios which take into account inflation and interest in accordance with 6.2(3) of Section 94 of the Act.
- Work with the Owners between drafting and finalizing the report.
- Produce a professionally stamped report meeting the requirements of 6.2 of Section 94 of the Act.