Why Strata Inspection Reports Matter When Buying a Property
A strata scheme can only be successful if the property itself is safe and comfortable to live in, and the easiest way to ensure that this is the case is to arrange for a strata inspection before purchase. Most commonly, you need a strata report when you’re about to buy into a strata scheme. Let’s have a look at why strata reports are needed, what they do and the process of a building inspection in a strata scheme.
What do strata inspectors do?
There are two parts to a strata inspection in a strata property: investigating the current state actual brick and mortar of the building, and the rules and inner workings of the strata scheme. Strata inspectors will examine the strata agreement itself, paying attention to the operations and intangible attributes of the property.
Why are strata inspection reports needed?
Strata inspection reports are vital if you are looking at purchasing into a strata scheme. Unlike freehold properties, a strata property is object subject to a whole range of rules and regulations, all of which you will be expected to abide by.
In the best instance, a strata report will reassure you that you are buying into a well-maintained property which has clear by-laws and reasonable levies. And, should your report reveal any flaws such as exorbitant fees, financial mismanagement, ongoing legal issues or residential disputes.
Even if you do not intend to reside in the property, it’s important to remember that a poorly-managed strata scheme can affect your unit’s rental and re-sale return, with the potential to drain your time, finances and resources.
What will my strata inspection report include?
Your report will include a number of details about the property, the scheme, and its processes including:
- Financial status of the scheme
- Current value of the building
- Sinking fund records and forecast
- Cost of current levies and likelihood of special levies
- Budget plan
- List of expenses for the past two decades
- Copies of meeting minutes, insurance and building reports
- Current, pending or past building works or defects
- Current, pending or past legal matters or disputes
- Information on bylaws, breaches and disputes
- Any known disputes or disharmony within the scheme
- Current owners and people of note
- Individual property entitlements
- Voting rights and entitlements
- Compliance with fire, WHS, and asbestos requirements
- Pet and animal approvals
For more information on strata inspections, common property and strata living, head on over to our document bank or get in touch with our friendly team.