These days, if you are considering buying a strata property, the owner is likely to have already purchased a strata report and for a small fee you can obtain a copy online through the agent.
A strata report is a review of the records of the Owners Corporation which manages the strata scheme of which the property forms part.
When reading the strata report pay attention to the following:
(a) Make sure the Owners Corporation is raising enough money to run the
strata scheme through the Administration Fund, which covers
day-to-day expenses, and the Capital Works Fund, which covers large
scale works;
(b) See if there is any evidence of any disputes between owners or
residents, especially if you intend to live in the property;
(c) Look out for evidence of building defects, particularly ones that affect
the property you are interested in and what is to be done to remedy
those defects; and
(d) Check out how the scheme is being managed by reading the minutes
of meetings of the Owners Corporation and its Strata Committee for
the last few years to see how issues have been handled.
The research you do before you buy can save you a lot of heartache and money!
October 2021