Then here are some things you should know
For the first time in NSW the sale and purchase of strata units is beginning to outstrip the sale and purchase of free standing houses.
As more and more people move away from the traditional quarter acre block with a 3 bedroom home it is important to know what to look for when considering the purchase of a strata property.
An important thing to remember is that with a strata property you are actually buying the “cubic airspace” in the lot being purchased and the Owners Corporation actually owns the floor, ceiling and walls of the building as well as the common areas used by lot owners.
This means that any repairs or maintenance of the building will be shared amongst all of the owners of the lots in the strata plan, even if there is a problem with another person’s unit and not your own unit.
It is therefore very wise to obtain a Strata Inspection Report before you exchange contracts. The Strata Inspection Report will do a number of things and in particular, it will –
- Report on the state of the Owners Corporation’s finances;
- Let you know if the Owners Corporation has a budget for repairs and replacements and whether it is keeping to that budget;
- Let you know what the amount of the current Administrative Fund levies and the Sinking Fund Levies are for the property;
- Provide you with information about any proposed “special levies” to fix any problems with the building (eg water penetration, concrete cancer, replacement of things like doors, balcony balustrades, etc) or any maintenance costs (eg painting, etc);
- Give you information about matters raised at Meetings of the Owners Corporation and the Annual General Meeting to give you an idea of any problems that might be present and being dealt with;
- Let you know whether any Court action is being taken by or against the Owners Corporation;
- Give you information about any disputes between residents or details of the “harmony” of residents in the strata development.
At Brazel Moore Lawyers we can attend to all of your conveyancing needs including the obtaining of Strata Inspection reports and more importantly, advise you on the meaning and interpretation of those Reports.
Should you have any enquiries, please do not hesitate to call Geoff Brazel on (02) 43247699.