Strata schemes and company title.
With strata scheme and company title properties, the consultant will normally only inspect and assess the condition of the interior and immediate exterior of the unit your are thinking of buying.
Common properties are not inspected as part of the standard unit inspection. The common property is everything that does not form part of a lot and is owned by the owners corporation (all the owners collectively).
Buying A Strata Unit
Before purchasing a strata title unit, it is wise to arrange an inspection of the books and records of the owners corporation by a suitably qualified strata searcher. There are many things that are not apparent from a visible inspection of the building. There are a number of factors which can impact on you once you become the owner and it is better to be informed about these so that a prudent decision can be made BEFORE purchasing.
What important items should you consider?
- Is the building adequately insured ?
- Is there a recent building valuation to support amount of insurance
- Does the strata scheme have an adequate sinking fund, taking into account the age of the building, the current state of repair, the type of construction
- Can I afford the quarterly levies?
- Are there any special levies planned?
- Are there any outstanding building works, unpaid invoices etc that could result in a special levy?
- Is the annual sinking fund allocation adequate?
- Does the building comply with current fire and safety codes?
- What are the current balances in the Administrative & Sinking Fund account?
- Are there any current or proposed litigation matters involving the owners corporation?
- Are there any limitations or restrictions on the use of common property which may affect you?
- Are there any outstanding public liability claims involving the owners corporation?
- Are animals permitted?
- Have any alterations to the unit been approved by the owners corporation, ie installation of air conditioning units?