There are no legal penalties, but Section 59 of the Strata Property Act now requires that a Depreciation Report (if there is one) be attached to the Information Certificate (Form B) which is a document that must be provided to an owner, a purchaser or a person authorized by an owner or purchaser.
If there is no depreciation report attached to Form B, a prospective purchaser will know immediately that the strata corporation is not complying with the Strata Property Act and is likely not providing funds for maintaining the common property. This could have considerable implications regarding the sale price of a unit. Any prudent purchaser might avoid purchasing a unit in such a strata and a conscientious real estate agent would warn a client of the potential risks involved.
The lack of a Depreciation Report would also warn financial institutions and insurance companies that the strata corporation is not planning for long term maintenance hence a mortgage or an insurance policy could be affected because of the potentially higher risk.