Strata Title properties commonly refer to properties located in apartment complexes or multi-storey complexes. In some situations they may refer to townhouses or a block of homes, which are all owned and managed collectively by the owners, though an entity called the “Owners Corporation”.
The Owners Corporation manages the common property of the complex or block of units, and organises for maintenance, repairs, and upkeep of the common property – for example, for the maintenance of the exterior paint, guttering, and lifts.
The Owners Corporation sets down an annual budget, determines what needs repairs, pays for maintenance of the common property, and determines what each individual owner needs to contribute in relation to the costs of maintaining the common property.
If you are purchasing a strata title property, you should consider ordering a strata inspection report. A strata inspection report is a report compiled by examining the books of the Owners Corporation and can reveal information such as:
- The Annual Budget of the Owners Corporation
- What Insurances the Owners Corporation have secured over the property
- The amount the Owners Corporation retains in its Administrative and Sinking Funds
- The amount of each quarterly contribution payable by you
- If there are any “special levies” outstanding or if a “special levy” is to be imposed soon
- Any proposals for maintenance to the building
- Recent maintenance done to the building
Overall a Strata Inspection report can reveal information about the condition of the building, the attitudes the owners have towards the building, the financial health of the Owners Corporation, and if there are any other issues that you should be concerned about when buying the unit.
If concerns are raised in the report, then, depending on the nature of those concerns, a further pest and bulding inspection may be ordered or specialists may be engaged to identify or address those issues.
At the end of the day however, as previously mentioned, the buyer must be beware and must be completely satisfied before moving ahead with purchasing their dream home!