Is a free strata report made available when carrying out an inspection of a NSW apartment or townhouse for sale. What information is provided for free when you look at purchasing an apartment? Do you need to arrange a strata inspection report?
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- QUESTION: We are looking to buy a townhouse but we note that the car park air vent is vented out into our courtyard. The present owners have covered the vent, maybe to minimise noise or pollution. Is this allowed or do we run away from this purchase?
- QUESTION: One of the units in our building is going up for sale. What strata information such as meeting minutes have to be provided to potential buyers before a strata report should be ordered?
- QUESTION: When inspecting a strata unit, should a free strata report be available for prospective purchasers? What documentation should the agent have available?
Question: We are looking to buy a townhouse but we note that the car park air vent is vented out into our courtyard. The present owners have covered the vent, maybe to minimise noise or pollution. Is this allowed or do we run away from this purchase?
Answer: Have the property inspected by a qualified and experienced builder that offers pre-purchase building inspections.
If you are seriously considering a purchase of this townhouse, we recommend that you have the property inspected by a qualified and experienced builder that offers pre-purchase building inspections.
Without seeing the property or the particular issue, it’s difficult to provide much help but we assume the vent was installed to provide ventilation, so blocking it would not seem appropriate.
The placement of the vent in a courtyard seems a bit strange but we don’t have any background information about the possible reasons for this. Again an experienced person might be able to provide advice on the placement of the vent and whether there’s a solution to this issue.
Michael Ferrier Eyeon Property Inspections E: michael.ferrier@eyeon.com.au P: 02 9260 5510
This post appears in the November 2021 edition of The NSW Strata Magazine.
Question: One of the units in our building is going up for sale. What strata information such as meeting minutes have to be provided to potential buyers before a strata report should be ordered?
We self manage our own strata.
One of the units is going up for sale. What, if any, strata information (such as minutes) has to be provided to potential buyers before a strata report should be ordered?
Is there a specific form and cost for a strata report?
Answer: Under NSW law, there are no specific requirements for the owner to provide strata documents to prospective buyers.
Under NSW law, there are no specific requirements for the owner to provide strata documents to prospective buyers. It is common for the by-laws to be provided as part of the contract for sale and sometimes the selling agent may provide the last minutes if provided by the vendor.
If a buyer wants to understand more about the strata plan, they can arrange for an inspection of the strata records. As the manager of the records you do not have to prepare the strata report, but you need to provide access to the records if requested on behalf of the owner.
For self-managed strata plans, we provide a list of standard documents that should be available for inspection, which I’ve provided below. This list is generic and not all documents will apply to all strata plans.
List of Documents:
- Certificate of Title Common Property and Strata Plan – detailing all lots and unit entitlement amounts as well as any registered by-laws
- Subject Lot Strata Roll Printout – strata roll details for lot outlining current owner and unit entitlement details
- Subject Lot Levy Printout – current levy register for the lot, detailing current levy amounts and paid to dates
- Funds Balance Sheet (current bank balance) – both capital works and administrative funds
- Certificate of Insurance and Valuation if one has been carried out
- Income and Expenditure Statements – for the current financial year of the strata plan as well as the previous 5 years.
- Minutes of Past Meetings of the Strata Plan – including last 5 years AGMs, strata committee meetings any extraordinary meetings etc.
- Fire Safety Certificate – if required by council
- Capital Works Fund Forecast – if one has been obtained
- OHS/WHS Report – if one has been obtained
- Asbestos Report – if one has been obtained
- Any Other Documents – this may include defects reports, building reports, quotes, important correspondence tec.
- Brief Overview of the Complex – including any proposed major works or any major works completed within the last 5 years. Also please outline any harmony issues or by-law breaches within the building
Michael Ferrier Eyeon Property Inspections E: michael.ferrier@eyeon.com.au P: 02 9260 5510
This post appears in the May 2021 edition of The NSW Strata Magazine.
Question: When inspecting a strata unit, should a free strata report be available for prospective purchasers? What documentation should the agent have available?
When inspecting a strata unit, what documentation should the agent have available for prospective purchasers in relation to the strata body corporate’s administrative and sinking funds? Should a free strata report be on hand?
We’ve inspected a couple of small apartments recently where the building clearly needed some remedial/repair work but the agents offered nil information about the sinking fund and instead suggested we purchase a strata report for $290.
I understand the purposes and necessity of a strata report if one is intending to purchase the property but this seems an unreasonable expense at an initial inspection. Shouldn’t such basic information be made available at the time of inspection?
Answer: We would always recommend a strata report
While it may seem like an unnecessary expense, we would always recommend a strata report – not only for the financials but for matters such as whether or not the scheme is harmonious and whether or not it is professionally managed etc.
There is no conveyancing law that requires the inclusion of the Owners Corporation’s financials as part of the Contract for Sale, so the onus is on you to obtain this information.
If you are prepared to risk it, the Section 184 certificate by owners corporation as to financial and other matters relating to the lot (now called a strata information certificate) is obtained by you during the course of the conveyance, but it would likely be too late for you to withdraw from the sale irrespective of its contents – only occasionally is such a certificate produced as part of the Contract for Sale.
The agent has no duty to provide a free strata report or any information other than the Contract prepared by the Vendor’s solicitors/conveyancers. The concept of “caveat emptor” applies ie buyer beware. You must undertake and rely on your own enquires.
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
This post appears in Strata News #186.
Read Next:
- 3 Key Things To Research When Considering Buying A Strata Unit: Don’t Shy Away From It
- What is a Strata Inspection Report?
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