This article detailing ‘What is a strata inspection report’ has been supplied and written by Paul Mulligan, Paul Mulligan Property Group.
A strata inspection report (also known as a strata search, Owners Corporation Records Inspection or Section 108) is a report that all purchasers of a strata titled, community titled or company titled property should invest in whether this is a residential or commercial property.
The Strata Inspection Report I refer to is similar to a building report when someone buys a house. The records of the Owners Corporation must comply with the Strata Schemes Management Act. By no means do we suggest that this replaces a building inspection report. The big difference is a Strata Inspection Report will report on the building, also known as the Strata Scheme. It should provide precise details of what is happening within the building or complex. Things such as:
- Who is the current owner?
- What are the quarterly levies for the property?
- What are your voting rights? What is your unit entitlement?
- When are the levies paid to?
- Have there been? Are there any current or proposed Special Levies (additional contributions outside your quarterly levies that may be raised for building defects or major works)?
- Does the Strata Scheme comply with Fire Requirements, Work Health & Safety Obligations and Asbestos Management?
- Is there any information in the records approving animals? Are animals permitted?
- How much is in the sinking fund and Administrative Fund? Are any of the funds in deficit?
- Are there any current legal matters? Have there been any legal matters in the past 3 years?
- Building Defects or Home Owner Warranty Claims for Defects;
- Breaches of By-Laws (Rules and Regulations for this building);
- Is there any disharmony?
- Major Income and Expenditure over the past 3 years;
- Proposed Major Expenditure;
- What is the current value of the building?
- Is the building insured and if so adequately insured? (details of the insurance and cover);
- Are there any compliance related matters within the records such as window and balcony compliance?
- Is there a Sinking Fund Forecast? (a report prepared detailing what the levy contributions should be over the next 10-15 years including detailed maintenance);
- Are there any known disputes within the Strata Scheme;
- Copies of Annual General Meeting Minutes, Extraordinary General Meeting Minutes and Executive Committee Meeting Minutes;
- Copies of building reports, extracts from compliance reports.
Every buyer considering the purchase of a strata titled property, whether it be Residential or Commercial, must engage the services of a fully qualified inspection company with an extensive property background.
Before engaging a Company to conduct and inspection of the Owners Corporation Records make sure you ask the company what property background their inspectors have. Many inspection companies use contractors who have very little or no property background, such as university students or stay at home Mum’s and Dad’s. Paul Mulligan Property Group’s Inspectors are fully trained by Paul Mulligan or have a property or legal related background.
- Strata Owners: Why refinancing your home loan may be a good idea … and why it could prove difficult
- Why is a Strata Inspection Report so important if I am considering buying a Unit, Apartment, townhouse villa or commercial property within a Strata Scheme?
About the Author: Paul Mulligan is a Licensed Real Estate Agent and has been in the Real Estate Industry since 1996. Paul is the CEO & Founder of Paul Mulligan Property Group, a property based company that provides expert Strata Inspection Reports, buyer agencies services and helps property sellers select their real estate agent.
M: 0417 766 009
E: [email protected]
For more information on matters such as purchasing an apartment or more details about a strata inspection report, visit Renting / Buying / Selling Strata Property, Strata Plan / Strata Inspection Report OR Strata Information Pages by State.