Strata fees, special levies, and the depreciation report
Before you buy a strata, its finances tell you more than the unit does. Here is how to read the fees, the reserve fund, special levies, and the all-important depreciation report.
Buying a strata means buying into a small shared economy. The unit matters, but so does the health of the corporation behind it — and that lives in the financial documents. A little fluency here is the best protection against an unwelcome bill after you move in.
Strata fees
Strata fees are the monthly payments that fund the building. They cover day-to-day operating costs — utilities, landscaping, management, insurance — and feed the Contingency Reserve Fund. Owners approve the annual budget (and therefore the fees) by majority vote at the AGM, and each unit’s share is set by its unit entitlement, roughly its size relative to the whole.
The Contingency Reserve Fund (CRF)
The CRF is the strata’s savings account for big or irregular expenses — a new roof, building-envelope work, elevator repairs. A well-funded CRF is a good sign; a thin one hints that future repairs may come via special levies instead.
The current contribution rule
Since November 1, 2023, a strata must contribute at least 10% of its annual operating budget to the CRF every year — regardless of the CRF’s current balance. (This replaced an older rule that let contributions stop once the fund reached 25% of operating expenses.)
Special levies
When a major expense outstrips the reserve, owners can approve a one-time special levy by a 3/4 vote at a general meeting, usually shared out by unit entitlement. For a buyer, an approved-but-not-yet-collected levy is exactly the kind of thing you want to spot before you commit.
The depreciation report
A depreciation report is a long-range plan — typically looking out 30 years — of the building’s major components and when each will need repair or replacement, with funding scenarios. It is the single most useful document for understanding a strata’s future costs.
A major 2024 change
Depreciation reports are now mandatory every 5 years for strata corporations of 5 or more lots, and the old option to defer by a 3/4 vote is gone. Stratas in Metro Vancouver, the Fraser Valley and the Capital Region without a recent report must have one by July 1, 2026; the rest of B.C. by July 1, 2027.
The documents a buyer reviews
Your strata-document checklist
- Form B Information Certificate — current fees and arrears, approved special levies, the CRF balance, and an insurance summary.
- The depreciation report and recent engineering / building-envelope reports.
- Financial statements and the current budget.
- Bylaws and rules, plus recent council and general-meeting minutes.
- The registered strata plan, and the Form F (Certificate of Payment) at completion.
Review them inside your subject period
Buyers typically write an offer “subject to review of strata documents,” which gives you a window to read all of the above before the deal is firm. See subjects explained.
Sources
GeoHouse is a technology company — not a licensed real estate brokerage, REALTOR®, lawyer, or financial advisor. This article is general education about how the process works in British Columbia, not advice for your specific transaction. Rules and figures change; confirm current details through the official sources linked above and consult a licensed REALTOR®, mortgage broker, lawyer, or notary before making decisions.