Ms. Sarah Chen is a strata manager for a development in Surrey where the original Strata Plan NWS1010 was filed in 1999. The development consists of 45 residential strata lots and 5 commercial strata lots. The developer registered an amendment to the strata plan in 2005 to convert a storage room into an additional residential strata lot. Which statement regarding the requirement for depreciation reports for this strata corporation is accurate?

Question: Ms. Sarah Chen is a strata manager for a development in Surrey where the original Strata Plan NWS1010 was filed in 1999. The development consists of 45 residential strata lots and 5 commercial strata lots. The developer registered an amendment to the strata plan in 2005 to convert a storage room into an additional residential strata lot. Which statement regarding the requirement for depreciation reports for this strata corporation is accurate?

Answer options:

• The strata corporation is exempt from preparing a depreciation report because it was formed before 2011. ✅ The strata corporation must obtain a depreciation report every 3 years, unless exempted by a 3/4 vote.
• The strata corporation must obtain a depreciation report every 5 years, and cannot waive this requirement.
• The strata corporation is not required to obtain a depreciation report as it contains mixed residential and commercial units.

Correct answer: The strata corporation must obtain a depreciation report every 3 years, unless exempted by a 3/4 vote.

Explanation: Section 94 of the Strata Property Act, and Strata Property Regulation 3.4, require a strata corporation to obtain a depreciation report every 3 years, but allow the strata corporation to waive the requirement by a 3/4 vote at an annual general meeting, unless the strata corporation has less than 5 strata lots or is a bare land strata corporation.