1. Depreciation Report
One of the most important documents
A depreciation report is a detailed engineering-style report prepared by an independent third-party professional hired by the strata corporation.
These reports:
Analyze major building components
Estimate remaining lifespan
Forecast repair and replacement costs over 25 to 30 years
Provide long-term financial planning guidance
They are detailed and expensive to produce. In the past, strata corporations in British Columbia could vote to postpone getting a depreciation report to save money. New provincial rules now require stratas to obtain them on a five-year cycle, with far fewer opt-out options. This is a positive change for buyers.
When reviewing a depreciation report, look for:
Major projects coming up, roof, membrane, elevators, plumbing
Whether projects are overdue
Whether the Contingency Reserve Fund matches projected expenses
A building without a current report is not automatically a deal breaker, but it does increase uncertainty.
2. Contingency Reserve Fund
The building’s savings account
The Contingency Reserve Fund is the strata’s long-term savings account used for major repairs and capital projects.
You can find the current balance on:
As a general guideline, many well-run buildings aim to maintain a Contingency Reserve Fund that is at least 10 percent of the annual operating budget, though this varies depending on building age and future repair plans. Some proactive buildings carry much more.
A low reserve fund combined with aging infrastructure can increase the likelihood of special levies. A healthy reserve fund suggests better planning and fewer surprises.
3. Annual General Meeting (AGM) Minutes and Strata Council Minutes
Where the real story lives
Financial statements show numbers. Meeting minutes show patterns.
Review at least 2 years of:
These documents often reveal:
Look for repeated issues, not just isolated comments.
4. Bylaws and Rules
What you can and cannot do
Bylaws affect:
Rentals
Short-term rentals
Pet restrictions
Renovations
Flooring requirements
Age restrictions
Always confirm that the building’s rules match your lifestyle before removing subjects.
5. Insurance Summary
Critical in today’s market
Every strata must maintain active insurance. Always confirm:
The policy is current
The coverage is active
The deductible amounts
In many Vancouver condo buildings, water damage deductibles used to be in the $25,000 to $50,000 range. In recent years, some buildings have seen water deductibles increase significantly, sometimes into the $100,000 to $250,000 range or higher.
Very high deductibles can be:
Buyers should ensure their personal condo insurance policy includes coverage for the strata deductible in case damage originates from their unit.
Large deductibles are not automatically a red flag, but they do require careful review.
6. Special Levies
Not always a single payment. A special levy is an extra charge to owners to cover major expenses.
It is not always a single one-time payment. For large projects, levies are often broken into multiple instalments over several months or years.
You can find mention of special levies in:
If a special levy has already been approved before the sale, it is usually the seller’s responsibility to pay it. In those cases, the levy is often factored into the listing price.
If a levy is being discussed but not yet approved, that becomes part of the risk assessment during negotiations.
Importantly, a special levy is not always negative. Sometimes it means the building is proactively addressing major repairs instead of deferring maintenance.
Common Mistakes Condo Buyers Make
Looking only at strata fees, not financial health
Skimming minutes instead of reviewing patterns
Assuming newer buildings have no issues
Ignoring insurance details
Not understanding upcoming capital projects
The goal is not to find a perfect building. The goal is to understand risk clearly.
What Strong Well-Run Buildings Tend to Have
A current depreciation report
Consistent Contingency Reserve Fund contributions
Reasonable insurance deductibles
Transparent communication
Proactive maintenance
Few repeated structural issues
These buildings often hold value better over time.
Buying a Condo in Vancouver Does Not Have to Be Risky
Strata documents are not there to scare you. They are there to inform you.
Most buildings have some minor issues, that is normal.
The key is knowing:
What is cosmetic
What is manageable
What is expensive
What is systemic
That is where experience matters.
Need Help Reviewing a Strata Package?
Strata packages can easily run 300 to 500 pages.
Toly & Josie are happy to walk you through what actually matters, what is normal and where real risk exists before you remove subjects or make an offer.
If you are thinking about buying a condo in Vancouver, let’s review it properly together.
