Why 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 Administrative and Capital Works fund?

An Administrative 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 Capital Works fund is for future capital works such as painting, carpeting, gutter replacement and new purchases for the common property.

What is a special levy?

A special levy is a one-off levy raised to cover unbudgeted work, or to recover a debt.

Is it necessary for a strata scheme to carry out a Capital Works fund assessment?

Yes. It is recommended to undertake such a report and refer to it when planning a Budget. 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.

Does 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 NSW Land Registry Services 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 1 of the Strata Schemes Management Regulation 2016 states no parking of a motor or other vehicle on common property without written permission. This includes the space in front of the garage. A check of the By-Laws for an individual property is recommended.