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
This post appears in the May 2021 edition of The NSW Strata Magazine.
Michael Ferrier EYEON Property Inspections E: michael.ferrier@eyeon.com.au P: 02 9260 5510