Every Strata Building in Richmond Must Now Have a Depreciation Report. Here Is Why That Changes Everything for First-Time Buyers.

There is a regulatory change that came into effect in BC on July 1, 2026 that I think every first-time buyer looking at condos in Richmond needs to understand. It is not getting nearly enough attention and it directly affects the quality of the decision you are making when you buy a strata property here.

As of July 1, 2026, every strata corporation in Metro Vancouver with five or more units must have a current depreciation report on file. Not optional. Not subject to a vote. Mandatory. The provision that previously allowed three quarters of owners to vote to defer or waive their depreciation report is completely gone. Any building that either has no depreciation report at all, or has one dated before December 31, 2020, was required to obtain a new one by this deadline.

For first-time buyers, this is genuinely good news. Let me explain why.

A depreciation report is a detailed assessment of everything a strata corporation is responsible for maintaining, from the roof and elevator to the plumbing, electrical systems, parking structure, and building envelope. It forecasts major repair and replacement costs over a 30 year horizon and evaluates whether the contingency reserve fund is adequately funded to cover those costs. It is, in essence, the financial health check of the building you are thinking about buying into.

Before this rule change, the old opt-out provision meant that poorly managed buildings with things to hide could and did avoid getting updated reports by simply voting to defer them year after year. Buyers could find themselves reviewing a depreciation report from 2015 on a building where major systems had aged considerably since then. That gap in information was genuinely risky and buyers often had no way of knowing how outdated the picture they were looking at actually was.

That loophole is now closed. When you submit an offer on a Richmond condo today, the Form B information certificate that must be provided to you is required to include the most recent depreciation report. If the building does not have one, or has one that predates December 31, 2020, the strata is now in violation of BC law. That is information you and your realtor need to know before you remove subjects.

What should you be looking for when you actually read the depreciation report? A few things matter most. First, the funding model. A well-run strata is contributing enough to its contingency reserve fund each month to cover the repair timeline outlined in the report without requiring a special levy. If the report shows a roof replacement needed in four years and the reserve fund has $40,000 when the projected cost is $400,000, you are looking at a building where every owner, including you if you buy, will likely face a significant special levy in the near future. Second, look at the age and condition ratings of the major building components. An elevator that is rated at end of life, plumbing that has already exceeded its expected service period, or a parking structure with waterproofing issues are all flags that go beyond the monthly strata fee you see in the listing. Third, check whether the report is current. Under the new rules, reports must be updated on a five year cycle. A report from 2022 is still valid. A report from 2019 is not and the building should have a newer one in hand now.

In the current Richmond market, where you have real time to do this due diligence, where subjects are being accepted as a standard part of offers, and where 40 days on market gives you the space to actually read and understand what you are buying into, this regulatory change is a genuine gift to first-time buyers. You now have access to a more complete and legally mandated picture of building health than buyers at any point in the last decade.

I read depreciation reports with my clients as part of every purchase process. It is one of the most important things I do. If you want to understand what to look for and how to assess a building's financial health before you commit, that is exactly the kind of conversation I am here for.

Neville Mak, REALTOR® The Real Brokerage 778-688-6667 | nevillemakre@gmail.com | nevillemak.ca Serving Richmond and Burnaby