Why Strata Records Matter When Buying a Property
When purchasing a strata unit, it's essential to understand the ins and outs of strata record keeping. Not only does this knowledge empower you as a buyer, but it also ensures you're aware of your rights and responsibilities within the strata scheme.
What Are Strata Records?
Strata records are documents that provide a detailed account of the operations, finances, and legal obligations of a strata scheme. These records are crucial for transparency and help owners and potential buyers assess the health and management of the property.
Key Records to Be Aware Of:
Strata Roll:
What It Is:
A comprehensive list of all lot owners in the strata scheme.
Why It Matters:
It includes essential details like owners' contact information, mortgagee details, and tenancy notices.
Financial Records:
What They Include:
Budgets, financial statements, invoices, receipts, and records of levies.
Why It Matters:
They provide insight into the financial health of the strata scheme, revealing how funds are managed and any potential financial risks.
Communication Records:
What They Include:
Meeting minutes, correspondence, notices, and any legal documents.
Why It Matters:
They offer transparency about decisions made, upcoming projects, and any disputes or issues within the scheme.
Why Are These Records Important for Buyers?
Assess Financial Stability:
Reviewing financial records helps determine if the strata scheme is well-managed financially or if there might be upcoming special levies.
Understand By-Laws:
Communication records and the strata roll can reveal any by-laws that may affect your lifestyle, such as pet restrictions or renovation approvals.
Identify Potential Issues:
Accessing these records can uncover any ongoing disputes, planned major works, or legal matters that might impact your decision to buy.
How to Access Strata Records
As a potential buyer, you have the right to inspect the strata records. Here's how:
Request Access:
Contact the secretary of the owners corporation or the strata manager to request an inspection.
Pay the Fee:
There may be a nominal fee for accessing these records, which is used to cover administrative costs.
Hire a Professional:
Consider engaging a professional strata inspector who can interpret the records and provide a comprehensive report.
Q&A
Can I see the strata records before making an offer on a unit?
Yes, you can request to inspect the strata records at any time, even before making an offer. This allows you to make an informed decision based on the property's management and financial status.
What should I look for in the financial records?
Look for consistent budgeting, sufficient funds in the capital works fund, and any history of special levies. This can indicate the financial health of the strata scheme.
Why is the strata roll important to me as a buyer?
The strata roll provides detailed information about the owners and any tenants. It can give you an idea of the community within the building and any agents or managers involved.
Are there any costs associated with obtaining strata records?
Yes, there is usually a fee to cover the administrative costs of preparing and providing access to the records. This fee is regulated and contributes to the owners corporation's funds.
Optimizing Your Purchase Decision
Understanding strata record keeping is a vital step in purchasing a strata unit. By thoroughly reviewing these documents, you can avoid unexpected surprises and ensure the property aligns with your expectations.
Tips for Buyers:
Start Early:
Begin the inspection process as soon as you're interested in a property.
Be Thorough:
Don't hesitate to ask questions or seek clarification on any records.
Consider Professional Help:
A strata inspection report from a professional can provide valuable insights.
Explore our sample condo and strata document review report to discover how we highlight the potential and concerns of properties, aiding both real estate professionals and buyers.