should I get a strata report?
A strata report will give you information
about the property you are looking at buying into. Ultimately,
you are not just buying a unit or a townhouse but you are
buying into a Scheme that has rules and regulations that govern
living in that complex. Some properties have major work planned
or defects that they are trying to get fixed by the builder.
While this affects not just the physical side of the property,
it can also affect their bank balance, which in turn may affect
you as an owner.
What is an administration and sinking fund?
An administration fund is a day to day expenditure
account for budgeted items, such as insurance premiums, common
property water and electricity, repairs and maintenance and
managing agent’s fees.
A sinking fund is for future capital works such as painting,
carpeting, gutter replacement and new purchases for the common
What is a special levy?
A special levy is a one-off levy raised to
cover unbudgeted work, or to recover a debt in the administration
Is it necessary for a strata scheme to carry
out a sinking fund assessment?
Yes. As of 1 July 2009 all strata schemes
must have a 10 year sinking fund plan. The plan will let an
Owners Corporation decide what work needs doing in the future
and plan when and how they will pay for it.
the strata’s insurance cover goods in my unit?
The strata’s insurance covers common
property only. Personal items should be covered separately
by the lot owner by either contents insurance or landlord’s
contents insurance (if the property is tenanted).
Can I keep a pet?
Quite often the Owners Corporation have registered
a by-law preventing (or restricting) pets to be kept on the
property. A check of the books and records will often reveal
this and is contained in our report. A check of the Certificate
of Title for the property at the Land Title Office will also
confirm if such a by-law has been registered.
The agent said there was unrestricted parking,
can I park anywhere?
A search of the books and records will indicate
if there are allocated parking spaces at the property, or
if a special by law grants permission to certain lots. Often
with older buildings there are limited parking spaces, or
garages, and not all units have allocated parking spaces.
By law 2 of the Strata Title Act 1996 states no parking of
vehicles on common property without permission. This includes
the space in front of the garage. A check of the by laws for
an individual property is recommended.