When preparing a market analysis for a BC strata unit, which item best shows the major repair and replacement costs the building is likely to face?
Correct Answer
C) The strata's depreciation report and special levy history
Under Strata Property Act s. 94, a strata corporation must obtain a depreciation report estimating the repair and replacement cost and expected life of major items, and the regulation now requires a new report at least every 5 years for plans with 5 or more lots. Read with the history of special levies, it shows the costs owners are likely to face, which affect value.
Why This Is the Correct Answer
This answer is correct. The depreciation report estimates repair and replacement costs and remaining life for major components, and the special levy history shows how those costs have been funded.
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