What matters you should be aware of if you are buying in a Strata or Community Scheme?
If you are buying in a Strata or Community Scheme, you should be aware of:
- current and proposed periodic levies and any special levies;
- financial status of the scheme (e.g. whether the strata/community title fund is healthy or there is a deficit) owners corporation decision making;
- insurances (e.g. what is covered under strata/community title insurances and what you need to insure once you become the owner of the property);
- building defects and works required on the common or association property, such as:- the removal or replacement of external cladding identified as combustible;- structural issues, e.g. cracks, water leaks etc;
- which could result in significant levies being imposed on the lot owners;
- history of works carried out on the common/association property and the lot being purchased that may be of interest to you;
- the lot owners’ rights and obligations under Strata By-laws, Community Management Statements (e.g. the requirements to obtain strata approval for renovation, keeping of pets, etc) scheme harmony including any past and ongoing disputes within the scheme.
Obtaining a Strata /Community inspection report can help in assessing these matters.
The report can beobtained through ordering an inspection of the Strata / Community Title recordswith a strata / community title inspector. It generally includes a history ofthe building or complex, the financial status of the scheme, current and proposedbuilding works, special levies, past works history and any compliance issues.
