New regulations under the Strata Property Act that improve accountability in strata corporations have been introduced.

The Office of Housing and Construction Standards has advised that the new Strata Property Act regulations for depreciation reports and Form B (the Information Certificate) have been made and that certain previously passed amendments to the Act have been brought into force.

The New regulation is available here.  Additional information is available at the Strata property Website here; updated strata property guides are expected later this month.

These amendments were made with extensive consultation with the strata community, including strata associations, strata lot owners, professionals, legal experts and the public.

Depreciation Reports Highlights:

• Lake other provinces, depreciation reports are now mandatory unless a strata corporation exempts themselves by an annual 3/4 vote. Strata corporations will have by December 13, 2013 to obtain a depreciation report or hold a 3/4 vote to exempt. Strata corporations with less than five units are not required to prepare depreciation reports or hold a 3/4 vote to exempt themselves.
• Given the wide range of strata properties, strata corporations will have the flexibility to select the person or team best suited to analyze their particular property. The regulations require that the depreciation report provide the person's name, qualifications, whether they have errors and omissions insurance and their relationship to the strata corporation
• Deprecation reports will include an onsite visual inspection and are to be updated every three years. Corporations will have 18  months from the time a 3/4 vote expires to get a depreciation report.
• Strata corporations are not required to fund contingency reserve funds (CRF) above the minimum previously required (25% of the operating budget). However, strata owners may now make any additional contributions to the CRF by simply majority vote. (Previously, an annual 3/4 vote was required to make contributions to the CRF about 100% of the operating budget.)
• The legislations and regulations are only one component of depreciation reports. Education and best practices will also provide information on: selecting a qualified person or team; formatting and presenting a report; securing materials electronically to facilitate regular updating; and best practices in maintaining, repairing and funding common property and limited common property.

Form B Overview:

The Form B has been revised to improve disclosure:

• By January 1, 2014, strata corporations will be required to provide additional information to prospective purchasers on parking and storage allocated to the strata lot.
• As well, by March 1, 2012, strata corporations must attach: copies of the strata corporations rules; the current budget; the owner developer's Rental Disclosure Statement, if any; and the most recent depreciation report, if any. WIth the exception of these requirements are new.

If they choose to do so, strata corporations m;ay use the revised Information Certificate sooner than the required dates.

Information provided by the Real Estate Council of British Columbia's Report from Council Volume 47, No.4