If you’ve read our previous email titled “Not All Depreciation Reports Are Created Equal”, you’ll know that evaluating the quality of a depreciation report is key to identifying shortcomings and avoiding potential pitfalls when assisting consumers purchasing strata-titled properties.
As of July 1, 2025, there’s an important clarification in the legislation regarding who can prepare these reports.
1. What’s Changed in the Legislation?
The requirement for a depreciation report to be written by a qualified person is not new. However, section 6.2 (0.1) of the Strata Property Regulation has now formally defined what “qualified person” means.
To be considered a qualified person, the individual must hold one of the following professional designations:
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Engineer - a professional engineer registered as a member in good standing with the Association of Professional Engineers and Geoscientists of the Province of BC
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Architect - a person registered as an architect with the Architectural Institute of BC
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Applied Science Technologist - a person registered as an applied science technologist under the Professional Governance Act
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Accredited Appraiser - a person designated Accredited Appraiser Canadian Institute by the Appraisal Institute of Canada
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Certified Reserve Planner - a certified reserve planner accredited by the Real Estate Institute of Canada
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Quantity Surveyor - a person designated Professional Quantity Surveyor by the Canadian Institute of Quantity Surveyors
This change helps provide more clarity and consistency around who is permitted to prepare depreciation reports in British Columbia. While most of the depreciation reports we’ve reviewed already meet this standard, we have come across some prepared by individuals whose credentials would not meet the new requirements.
2. Why This Matters for Buyers and Realtors
When reviewing a depreciation report as part of a purchase, it's now important to confirm that the report was prepared by someone with one of the above designations.
If the report was completed before July 1, 2025, the individual may not meet the newly defined qualifications, but that does not necessarily invalidate the report. However, any new depreciation reports obtained by a strata corporation on or after July 1, 2025, will need to be prepared by someone with one of the defined qualifications.
Understanding who prepared the report, and whether they meet current requirements, can help consumers better assess the reliability of the information provided.
