Reservely — Depreciation Report Builder

2.1 Regulatory Framework

This Depreciation Report has been prepared in accordance with the British Columbia Strata Property Act, S.B.C. 1998, c. 43, and the Strata Property Regulation, B.C. Reg. 43/2000, including the requirements of section 6.2 of the Regulation. The report is intended to satisfy the depreciation report requirements applicable to the Strata Corporation under the Act and any applicable strata bylaws.

The author is a P.Eng qualified to prepare depreciation reports under the transitional and current rules established by the British Columbia government.

2.2 Inspection and Methodology

The on-site inspection was completed on September 16, 2026. The methodology consists of a visual, non-invasive inspection of the common property components as they are reasonably accessible, accompanied by a review of the Strata Corporation's records and any prior depreciation reports. Components were assessed for visible condition, remaining useful service life, and current replacement cost using industry-standard references and the inspector's professional judgment.

No destructive testing, opening of assemblies, or specialist engineering studies were performed unless specifically noted. Hidden or concealed conditions are not within the scope of this Report and may not be detected by a visual inspection.

2.3 Cost Estimates and Budgetary Tolerance

Cost estimates provided in this Report represent the inspector's opinion of current (year-of-Report) replacement costs for the components inventoried. They are derived from typical industry pricing guides, contractor input where available, and the inspector's experience with similar projects. Actual contractor pricing may vary.

**A budgetary tolerance of plus or minus twenty percent (± 20%) should be assumed for all cost figures**, as market conditions, scope clarifications, and contractor availability can substantially affect final pricing.

2.4 Exclusions and Excluded Conditions

The following are expressly excluded from this Report:

- **Capital improvements, code upgrades, and changes in regulatory requirements** that may be triggered by future replacement work are not costed separately unless specifically noted. - **Hidden defects, latent conditions, asbestos, mold, environmental contamination**, and similar concealed conditions are not within scope. - **Improvements or repairs to limited common property** are addressed only to the extent typically funded from the contingency reserve fund under the Strata Corporation's bylaws. - **Operating expenses** — items that recur more frequently than once per year, or are integral to daily operation (cleaning, grounds maintenance, minor consumables), are operating expenses and are not included in the projections. - **Cosmetic-only work**, routine maintenance, and consumables.

2.5 Reliance on Information Provided by the Strata

The cost figures, expected useful service lives, and remaining-life estimates in this Report rely in part on information furnished by the Strata Corporation (such as the current Contingency Reserve Fund balance, annual contribution rate, planned projects in progress, and historical maintenance records). The inspector has relied on this information as provided without independent verification, and disclaims responsibility for errors arising from inaccurate or incomplete information supplied.

2.6 Use, Reliance, and Distribution

This Report has been prepared for and is intended for the use of the Strata Corporation named herein. The Report may be relied upon by:

- The Owners and the Strata Council in making decisions about funding of the Contingency Reserve Fund; - The Owners' auditor and the Strata Corporation's accountant in connection with the annual audit and financial statements; - Prospective purchasers and their advisors in evaluating the financial condition of the Strata Corporation; - Lenders and insurers in connection with due diligence on the Strata Corporation.

The Report is not intended for, and the inspector disclaims any duty to, any other party. Reproduction or distribution beyond the parties listed requires written permission.

2.7 Updating the Depreciation Report

Under the Strata Property Regulation, depreciation reports are valid for a defined time period. This Report is considered current for 5 years from the effective date of September 16, 2026, after which an updated depreciation report should be commissioned.

Material changes to the Strata Corporation's common property (additions, alterations, or significant changes in condition) may warrant earlier review. Owners and Council should review this Report against the most recent physical condition of the Strata Corporation's assets from time to time.