Looking to buy a new property? Ask for a strata report
While strata reports can be valuable for prospective buyers, additional research has proven beneficial before buyers make a final decision
Most of us have experienced making the mistake of buying a ‘lemon’. First car buyers are often the perfect example. We get distracted by sleek wheels and shiny exteriors, so we jump at a bargain. When it comes to buying a new property though, there’s so much more at stake.
As a new property buyer in a strata property or scheme, it’s especially crucial to do background research beyond just the selling price. As a lot owner in a strata scheme, you will only become an owner of a section of the property, while the common areas will be shared with other property owners who form part of the owners corporation.
Digging deep into a strata report and doing additional market research, will therefore provide far more insight into your future home, such as, possible risks and defects you may face or potential ongoing costs that are likely to be incurred.Here are 3 things you need to do before you buy an apartment:
1. Request a strata report
A strata report contains all the information you need to know about the property before you make a purchase by providing a valuable overview of important information such as:
- The history of the building
- The financial status
- Any special levies that exist
- Pending maintenance works
- If the apartment building has any defects
- Meeting minutes from the strata committee
- Compliance reports
- Building by-laws or rules
- and more.
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Each state has its own legislation. For example, New South Wales follows Section 182 of the Strata Scheme Management Act 2015 under Section 182, an allowance may be given to prospective buyers to review books and records.
A buyer can request access to these records, however, it will be necessary to do the due diligence and form a strata report based on the records. If buyers aren’t familiar with industry terminology, there’s the option of hiring a professional strata searcher to do the job.