The condo looks perfect. The location works, the purchase price fits the budget, and the monthly strata fee seems manageable.
Then, after completion, a notice arrives: the building needs major repairs, and each owner may be expected to pay thousands of dollars through a special levy.
For condo buyers in Victoria, the visible cost of a property is only part of the picture. A strata unit also comes with a share of the building’s future repair needs. An updated depreciation report can help show whether expensive work is approaching and whether the strata has been planning for it.
This matters now because many strata corporations in the Capital Regional District face an upcoming deadline for updated depreciation reports. A report that is missing, outdated or raising concerns may have a real impact on a buyer’s decision.
What Is a Strata Depreciation Report?
A depreciation report is a planning document prepared for a strata corporation. It looks at the shared property and assets that the strata is responsible for maintaining, then estimates future repair and renewal costs over a long-term period.
Depending on the building, the report may consider:
- Roof replacement
- Building envelope repairs
- Plumbing systems
- Elevators
- Windows and balconies
- Parkades
- Roads, landscaping or shared amenities
- Other common property that may require costly work
The report also examines the strata’s financial position, including its contingency reserve fund, and provides funding models for anticipated work.
For a buyer, this can offer an early warning. A building may look well maintained during a showing, while its report points to large projects that could affect owners financially in the years ahead.
The July 1, 2026 Deadline for Many Victoria Stratas
British Columbia has strengthened its rules for depreciation reports. Strata corporations with five or more lots must obtain a depreciation report every five years and can no longer vote each year to defer the requirement.
Under the new rules, strata corporations in the Capital Regional District that do not have a depreciation report, or that received their most recent report before December 31, 2020, must obtain an updated report by July 1, 2026. There are limited exceptions for islands within the CRD that are accessible only by boat or air.
The full requirements are set out in the Province of British Columbia’s depreciation report guidance.
For people buying a condo in Victoria, Langford or other affected communities in the CRD, this deadline can make strata document review especially relevant. A buyer may encounter a recent report, a report that is about to be replaced, or a strata that is still preparing to meet the deadline.
Each situation may raise different questions before a purchase proceeds.
A Depreciation Report Does Not Mean a Special Levy Is Coming
A depreciation report is not automatically bad news. Buildings age, and responsible stratas plan for repairs before problems become urgent.
A strong report can show that the strata understands its future repair obligations and is collecting funds with those costs in mind. It can also help buyers understand what they are purchasing into.
The concern arises when a report identifies costly upcoming work and the strata’s available funds appear limited. In that situation, owners may need to contribute through increased strata fees, special levies or both.
For example, a report may show that a roof replacement or major plumbing project is expected soon. If the contingency reserve fund is not sufficient to cover the work, the new owner could face costs that were not obvious from the listing price or monthly strata fee.
Why Condo Buyers Should Care Before Removing Conditions
When buying a strata property, the condition of the unit itself is only one part of the decision. Buyers are also taking on an ownership interest in the common property and the financial decisions of the strata corporation.
Before committing to a condo purchase, buyers may want to review documents such as:
- The current depreciation report, if one is available
- The Form B Information Certificate
- Strata council and annual general meeting minutes
- The operating budget and contingency reserve fund information
- Any special levy history or proposed special levies
- Notices of major repairs, legal claims or insurance concerns
- Strata bylaws and rules
Minutes can be especially revealing. A repair project may not yet appear as a formally approved special levy, but repeated discussion of leaks, building envelope concerns, elevator failures or engineering assessments can signal that a larger cost may be developing.
A buyer who reviews these materials after removing conditions may have far fewer options than a buyer who identifies concerns before becoming firmly committed to the transaction.
What If the Strata Report Is Missing or Outdated?
A missing depreciation report should not automatically end a purchase, but it should prompt questions.
If a strata is required to obtain an updated report by July 1, 2026 and has not yet done so, buyers may want to understand:
- Whether a report has been ordered
- When it is expected to be completed
- Whether known repairs are already being discussed
- Whether owners have recently voted on funding or repair work
- What the current contingency reserve fund looks like
- Whether the purchase contract provides enough protection while key information is outstanding
An older report can also have limited value if building costs, repair timing or the strata’s financial position have changed since it was completed.
In a competitive market, it can be tempting to overlook missing records to secure a property. Yet missing information can be most concerning when the financial exposure could be substantial.
Sellers May Need to Be Ready for Buyer Questions
The new deadline also matters for condo sellers in Victoria. Buyers and their advisors may be paying closer attention to depreciation reports and repair funding as the July 1, 2026 deadline approaches.
A seller may benefit from understanding in advance:
- Whether the strata has a current depreciation report
- Whether a new report is expected before or during the listing period
- Whether upcoming repairs or special levies have been discussed
- Whether the strata documents may create concerns for buyers
- How disclosure issues may affect the transaction
A new report that identifies major expenses may affect buyer interest or negotiations. Failing to deal carefully with relevant strata information can lead to disputes after the transaction.
The Purchase Price Is Not the Whole Cost of a Condo
A condo advertised at a lower purchase price may not be the better financial choice if a large levy is likely soon after closing. On the other hand, a unit in a strata with higher monthly fees may be better positioned if it has planned carefully and saved for future building needs.
Depreciation reports help provide context that a listing alone cannot show. They do not predict every expense, and they do not replace a full review of strata records. They can still be one of the most useful documents for a buyer trying to understand the financial health of a building.
For anyone buying a condo in Victoria, the key question is not only, “Can this purchase be afforded today?” It is also, “What costs may come with ownership tomorrow?”
Frequently Asked Questions About Strata Depreciation Reports in BC
1. Do all strata corporations in Victoria need a depreciation report?
Strata corporations with five or more lots are generally required to obtain a depreciation report on a five-year cycle. Stratas with four or fewer lots are exempt from the provincial requirement. Special timing rules apply depending on when the strata was established and where it is located.
2. What is the July 1, 2026 deadline for strata corporations in Victoria?
Strata corporations in the Capital Regional District with five or more lots must obtain a depreciation report by July 1, 2026 if they do not have one or if their existing report was received before December 31, 2020. Limited exceptions apply to islands within the CRD that are accessible only by boat or air.
3. Can a depreciation report tell a buyer whether a special levy will happen?
A depreciation report can identify anticipated repairs and funding needs, but it does not necessarily confirm that a special levy will be imposed. Buyers should review the report together with strata minutes, budgets, reserve fund information and any notices about approved or proposed work.
4. What should a buyer do if the strata does not have an updated report?
A buyer may want to ask whether a new report has been ordered, when it is expected and whether any major repair issues are known. The buyer should also consider whether the purchase contract allows enough time and protection to review the information before becoming fully committed.
5. Should a real estate lawyer review strata documents before a condo purchase?
Legal advice can help a buyer understand contractual issues, disclosure concerns and legal risks connected with a strata purchase. Timing matters. Buyers with concerns about strata documents, missing reports or potential special levies should seek advice before removing conditions or completing the purchase.
Buying or Selling a Condo in Victoria?
A strata purchase can come with financial obligations that are not obvious at the showing or in the listing price. Before buying or selling a condo in Victoria, it is wise to understand what the strata records reveal and whether upcoming repair costs could affect the transaction.
Sunny Tathgar assists clients with residential property transactions and related legal concerns. Learn more about real estate legal services in Victoria and surrounding communities or contact Tathgar Law to discuss a condo purchase or sale.
