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» StrataBlog» Depreciation Reports: Just A Couple of Thoughts
September 5, 2012

Depreciation Reports: Just A Couple of Thoughts

Depreciation Reports: Just A Couple of Thoughts
Most Strata Councils are, by this time, familiar with the Depreciation Report Requirement for Strata Corporations. Essentially, all non-exempt Strata Corporations must fulfill this requirement by December 13th, 2013.

While securing quotations for these reports for our clients in our office, one or two considerations have arisen that I have not seen mentioned in many other articles about the subject.

Firstly, when reviewing the contract documents for these reports as supplied by the providers, it is important to ensure that these reports can be released to third parties. Not every Depreciation report proposal is the same and we have run across one or two that contained a clause in the contract preventing their release to others. My concern lies with the obvious request from a prospective buyer to review the report and other similar circumstances.

Secondly, as this requirement to undertake a Depreciation Report will be an ongoing one, it would make sense to establish a relationship with the firm who is undertaking it on behalf of the Strata Corporation. Strata Councils should be looking to maximize the report’s usefulness to the Strata Corporation. While it is to be a planning tool, the quality of the planning tool may vary considerably as will the qualifications of those offering the service. Council’s can look upon this as an opportunity to add to their management team in a very important way.

It is important that the Strata Corporation consider this relationship when they undertake the report so that there is continuity in the future.

 

Strata Management Vancouver

We are reaching a point in Vancouver where the value of our Strata Title property will be influenced more profoundly by the quality of the management as detailed reports on the condition of buildings form a regular part of the documents reviewed by purchasers.

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