by Zuzana Kulhánková Powell River condo owners and strata council members should be aware of new Strata Property Act regulations and the way they affect the management of their property.
Depreciation reports are now mandatory unless a strata corporation exempts themselves by a 3/4 vote at its annual general meeting. This only applies to strata corporations with five or more units. Strata corporations have until December 13, 2013, to either obtain a depreciation report or hold a vote to exempt.
Who can prepare a depreciation report? Regulations are quite flexible due to the wide range of strata properties. Depreciation reports include an onsite visual inspection and are to be updated every three years. The only requirements to date are that the reports give the person’s name, qualifications, whether they have errors and omissions insurance and their relationship to the strata corporation. Each corporation can select the person or team best qualified for the needs of their building.
Form B has been revised to improve the information a prospective buyer receives. As of March 1, 2012, the enclosures are: copies of the strata corporation’s rules; the current budget; the owner developer’s rental disclosure statement, if any; and the most recent depreciation report, if any. Only the depreciation report requirement is new. By January 1, 2014, strata corporations will also be required to provide information on parking and storage allocated to each strata lot.
To further protect the public and specifically the strata owner, regulations for audited financial statements are expected to be implemented next year. Audits of financial statements of a strata corporation are currently not a requirement; however, strata corporations using a licensed strata manager already have their accounts audited annually as a requirement of their strata manager’s practice.
It seems that every time we relax thinking we have all the angles covered, something new comes along to keep us on our toes. Good thing the grey cells enjoy being busy.
Zuzana Kulhánková is a licensed Strata Manager with RE/MAX Powell River.
