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Strata Management Licensing Practice Exam · Question

What legislative requirement exists for depreciation reports (or reserve fund studies) in many Canadian provinces?

In provinces like British Columbia and Ontario, legislation mandates that strata corporations obtain depreciation reports or reserve fund studies from qualified

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Question: What legislative requirement exists for depreciation reports (or reserve fund studies) in many Canadian provinces?

Answer options:

  • They are optional and only conducted if a strata council requests one. ✅ They must be prepared by a qualified professional at regular intervals.
  • They are only required for strata corporations with more than 100 units.
  • They are a federal requirement for all types of multi-unit housing.

Correct answer: They must be prepared by a qualified professional at regular intervals.

Explanation: In provinces like British Columbia and Ontario, legislation mandates that strata corporations obtain depreciation reports or reserve fund studies from qualified professionals at specified intervals to project long-term capital needs.

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