BC Depreciation reports are becoming an increasingly important document in BC very active real estate market. As interest rate rise home affordability becomes more challenging. This challenge directs first time buyers to the condo resale market where many disclosure documents are required during the sale of a strata unit. For high ratio mortgages that requires CMHC insurance it is requested that the most recent depreciation report ( if it exists) must be included as part of the disclosure.
https://www.cmhc-schl.gc.ca/en/co/buho/cobugu/cobugu_007b.cfm
A depreciation report is used to calculate the potential risk in a property transaction. The risk quantified in a BC depreciation report outlines the common property assets, their expected life and their replacement costs. Knowing this information before you buy into a strata is useful for buyers and sellers.
Please contact RSK Strata Advisors for further information.
