All You Need To Know About Pre-Purchase Strata Reports
A pre-purchase strata report is a document detailing the current state, rules and regulations of a strata scheme. It contains the strata bylaws, financial and management information. In the excerpt below, you will learn more about pre-purchase strata reports and why you need the document before buying a unit in a strata scheme.
Components of a Pre-Purchase Strata Report
The pre-purchase strata report contains the following:
1. The Condition and History of the Property
When purchasing a unit in a block of flats, you would want to ascertain the current condition of the property. For instance, how strong is the foundation? Does the building have pest control equipment? What is the state of the drainage system? Does the roof have any leaks? Is the property insulated?
Regarding the property's history, you need to know when it was built and who the architect and builder in charge of the project were. If the property has had renovations, ask for local council permits.
Check how much money you will contribute towards the management of shared property and amenities. Inquire how these funds are managed. For example, the owners committee should have a limit on how much money they can spend on repairs and maintenance. The financial records will also indicate if the owners association has any debts. You would be a bit sceptical if the strata unit has too much credit or if payments have not been made on time.
The strata report explains the composition of the owners committee. Conduct a background check to ascertain that the elected officials have excellent leadership skills. If the owners association has a manager, the strata report will indicate his or her duties, his or her contact information and the amount he or she is paid.
The document contains the strata bylaws. These are regulations that dictate the use of shared amenities such as parking spaces, swimming pools and parks. Besides, they determine restrictions such as playing loud music or keeping pets.
Acquiring a Pre-Purchase Strata Report
Pre-purchase reports are not available to everyone. More often than not, you will need a letter of authority from the seller or the seller's conveyancer. The letter is submitted to the owners committee or the strata records manager. You may have to pay a small fee to acquire the records.
The contract of sale should allow you to back out of the deal if you find severe defects on the property. Alternatively, you could renegotiate the purchase price.
A pre-purchase strata report is vital for anyone that intends to purchase property with a strata title. Examine the condition and history of the building, financial records, bylaws and management details.