What Is a Strata Report & Why Do You Need to Purchase A Strata Inspection Report?
A Strata Inspection Report is a vital report that a buyer should obtain prior to bidding on or purchasing a property that is strata titled, company titled or community titled.
Purchasing a property is a huge financial investment, as such it is vital to ensure that you have done your due diligence to avoid any large unexpected expenses, repairs and stress with your new property.
It is prudent that you allow in your budget a few hundred dollars to purchase a Strata Inspection Report from a qualified inspection company, who have extensive strata management experience and are able to provide you with the information you need to make informed decisions with your property purchase.
It is essential that a potential buyer is informed of the governance and operation of the owners corporation, to allow them to understand their role and responsibilities as a member of the owners corporation which is effective as soon as settlement takes place.
A prospective purchaser who has obtained a Strata Inspection Report is armed with the knowledge and power to manage the entire purchase process and negotiate on a suitable purchase price.
Below is just some of the essential information that may be included in SR NSW’s Strata Inspection Report for your information:
- The current strata manager and information around the management agency agreement
- Information contained within the strata roll
- The strata committee members and what their roles are on the strata committee
- How long the current strata committee have been in place
- What your units of entitlement are and what the overall aggregate is at the property. This allows you to understand how to work out exactly what you will be paying and how your quarterly fees are calculated
- What your voting power (entitlement) is within the owners corporation
- Whether there any proposed special levies
- How the overall budget has been tracking and what previous budgets existed
- Whether there any upcoming major works that you should be aware of and whether the owners corporation have already raised monies for those works
- Any current legal matters and any disputes
- Whether there is a capital works plan/forecast
- Copy of any special by-laws
- Determine whether there any major disputes
- When the last building valuation was carried out
- The current financial position of the owners corporation and what it has historically being like
- The insurance for the building and the insured amount
- Any building reports on file
- Copies of minutes from strata committee meetings, extraordinary and annual general meetings