INNOVATION July-August 2021

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C aveat emptor! Buyer beware! We hear it all the time, but not all of us heed it, even when it comes to what is probably the biggest purchase of our lives: a place to live. Many real estate purchases are made on gut instinct, often without a home inspection or a careful review of essentials like roofs and plumbing, or—for condo buyers in BC—a thorough reading of the depreciation report. And that oversight can result in a surprise later, such as an unanticipated special assessment. “With the conditions of the warranty structure that we have in BC now, plus the Building Code and the emphasis that’s been placed on much higher standards,” said Tony Gioventu,

THE PLEASURES AND PAINS OF PREPARING DEPRECIATION REPORTS Depreciation reports are a significant part of many BC engineering practices these days, but they can be difficult and time consuming, and not everyone is suited to the work. For those who are, however, depreciation reports can be stimulating, worthwhile, and good for business. Robin J. Miller

executive director of the Condominium Homeowners Association of British Columbia, “most of the buildings that are constructed in this province are just superb. But things happen.” Every building, large or small, deteriorates over time, but that deterioration is predictable. Government- mandated depreciation reports for condominiums are, he said, “a very good vehicle for ensuring continuous monitoring of systems” and helping condo owners be aware of, and plan for, work that will need to be done in the future. In this province, there are currently about 32,000 condo corporations (or stratas as they are called here), including residential, commercial and mixed-use stratas. As of 2011,

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