Why should I get a strata report?

A strata report will give you information about the property you are looking at buying into. Ultimately, you are not just buying a unit or a townhouse but you are buying into a Scheme that has rules and regulations that govern living in that complex. Some properties have major work planned or defects that they are trying to get fixed by the builder. While this affects not just the physical side of the property, it can also affect their bank balance, which in turn may affect you as an owner.

What is an administration and sinking fund?

An administration fund is a day to day expenditure account for budgeted items, such as insurance premiums, common property water and electricity, repairs and maintenance and managing agent’s fees.
A sinking fund is for future capital works such as painting, carpeting, gutter replacement and new purchases for the common property.

What is a special levy?

A special levy is a one-off levy raised to cover unbudgeted work, or to recover a debt in the administration fund.

Is it necessary for a strata scheme to carry out a sinking fund assessment?

Yes. As of 1 July 2009 all strata schemes must have a 10 year sinking fund plan. The plan will let an Owners Corporation decide what work needs doing in the future and plan when and how they will pay for it.

Does the strata’s insurance cover goods in my unit?

The strata’s insurance covers common property only. Personal items should be covered separately by the lot owner by either contents insurance or landlord’s contents insurance (if the property is tenanted).

Can I keep a pet?

Quite often the Owners Corporation have registered a by-law preventing (or restricting) pets to be kept on the property. A check of the books and records will often reveal this and is contained in our report. A check of the Certificate of Title for the property at the Land Title Office will also confirm if such a by-law has been registered.

The agent said there was unrestricted parking, can I park anywhere?

A search of the books and records will indicate if there are allocated parking spaces at the property, or if a special by law grants permission to certain lots. Often with older buildings there are limited parking spaces, or garages, and not all units have allocated parking spaces. By law 2 of the Strata Title Act 1996 states no parking of vehicles on common property without permission. This includes the space in front of the garage. A check of the by laws for an individual property is recommended.