Strata Inspections

When buying a property that is part of strata scheme it is highly recommended to obtain a strata inspection report to understand the finances, insurances and maintenance of the scheme to avoid nasty surprises and hidden costs later on.

 

Once you purchase a property in a strata scheme you become part of the Owners Corporation and assume joint responsibility for its administration and maintenance. That’s why it’s very important to understand what you are getting yourself in to.

 

A Strata Inspection, also known as a Strata Search or Strata Title Inspection, involves the inspection of the records and accounts of the Owners Corporation which are usually held and managed by a professional Strata Management company working on behalf of the owners (in smaller plans one of the owners may take on this task).

 

The inspection does not involve visiting the property but rather reviewing the records that pertain to the maintenance and history of the scheme in which the property resides. If necessary, follow-up building and pest inspections can then be arranged and may be recommended in addition to viewing strata records.

 

What’s included in a strata inspection report:



The inspection consists of reviewing the recent year’s records and paperwork held by the strata manager and made available to the inspector for the plan in question. The inspector will take scans or copies of documents they think relevant and include them in the report along with a summary of the key points in the documents. They may also comment on other records sighted and may attach large documents separately (e.g. defects reports) if they can be suitably attained.

 

  • Financial status of the scheme
    • levies payable by the unit
    • past and planned special levies and their purpose
    • current financial position of the building
    • all expenses for the past two years
    • 10-year budget analysis

 

  • Building works and issues
    • past works history
    • pending building works
    • likelihood of major projects
    • history of major repairs, what for & how they were addressed
    • structural defects, if any - how they were addressed and/or paid for
    • defects reports
    • Fire safety and smoke detector checks and issues
    • asbestos reports
    • pest inspections

 

  • Legal, Insurance & Safety aspects:
    • legal actions against the building or residents
    • current insurance particulars of the building and replacement costs
    • determine the mandatory valuation for insurance is carried out every 5 years
    • a history of insurance claims
    • pool safety compliance certification

 

  • General information:
    • strata roll, managing agent and executive committee
    • annual general meeting minutes
    • any references to the lot in question
    • by-laws e.g. keeping of animals, floor coverings, alterations etc.
    • any disputes/disharmony amongst the residents
    • any other notable events

 


What’s not included:



A strata inspection is not an exhaustive review of every record held especially as older buildings may have records stretching back several decades. Nor does it attempt to report on every aspect of the plan but rather provides a snapshot of the recent history and highlights key points you should be aware of. Items typically not covered by a strata inspection include:

 

  • Visiting the property – the inspection is of the records relating to the property which are usually held at the strata manager’s office.
  • Old records – only the last 5 years of records are normally inspected
  • Copies of all budgets, meeting minutes and documents – up to 5 years of AGM minutes,  last year’s financials and essential legal and insurance and usually included. Other documents are at the inspector’s discretion and experience although may be commented upon in the report.

 


 

Please Note – Other titles such as Company Title Buildings, Community and Neighbourhood Associations and Building Management Committees are similar to strata plans and can be inspected in the same manner.

 

 

The above is merely a broad summary and therefore it is important to read the inspector’s terms and conditions to fully understand what is included and excluded in the inspection before you proceed.

 


Share this:

Articles

Child friendly places to visit in Ballarat

Moving to a new city like Ballarat can often be daunting, especially if you have small children t...

Read more
5 local attractions to visit when moving to Toowoomba

Moving to Toowoomba? This picturesque Queensland city in the Darling Downs region has many local ...

Read more
4 things to do when moving to Geelong

Geelong is the largest provincial city in Victoria and is located a short one hour drive south we...

Read more
Order online now or call 1300 724 465! Building, pest and strata inspection reports for properties in Sydney and Melbourne. Order newreports or buy existing reports!
P.O. Box: 678,
Jannali,
NSW - 2226
Australia.
Tel : 1300 724 465
Email : admin@compareinspections.com.au
Open: Mon - Fri 9am - 5pm EST