Do I need a Strata Report when considering buying a unit?

If you’re thinking about purchasing a strata-titled unit in Sydney, a Strata Title Report is vital. You deserve to know everything about the property before you sign on the bottom line. One of the most comprehensive ways to obtain this information is with a strata inspection report. These reports reveal ESSENTIAL information that you simply must know before getting too far into a strata property deal.

When you buy a unit, you are becoming jointly responsible for the entire complex. A Strata Title Report will give you an accurate picture of the costs involved in owning a unit and can be a deciding factor in determining whether or not you should purchase a particular apartment. A strata report will include details about ownership, insurances, levies, litigation and disputes, contract breaches and so much more.

Why is a Strata Title Report so important?

As you can imagine, there are times when the occupants and committee of a building don’t get along all that well. Wouldn’t you like to know whether or not there was a history of conflict or disputes within a building before you invest your money? Not surprisingly, you aren’t always given the whole story and this can lead to serious problems. As a property investor, you deserve to know everything about the building so you can make an informed decision before entering into a contract.

Thankfully, Besafe Property Inspections will delve into the goings-on of a building, reviewing the building records to see if there are any issues which can have a serious impact on your quality of life – or even lead to legal trouble. We will review a range of documents and reports, including the minutes of the Body Corporate meetings which is where you should look if you want to investigate the existence of problems between tenants and/or owners.

Perhaps you still aren’t convinced about how vital a Strata Title Report is? Here are our top 5 reasons for obtaining a Strata Title Report:

1. Strata Levies

Any frequent or significant levies can become a financial issue for an apartment owner on a tight budget as these contributions are generally compulsory. A Strata Title Report will provide you with information on the current levies associated with ownership, including past and current levy rates to give you an idea of how much these may cost you each year.

strata title report

The strata report will also tell you if any special levies have been raised in order to cover extraordinary issues like major renovations or repairs.

2. Property Maintenance

A strata report will include information on how the building’s levy money is being spent and whether there is enough money to rectify any maintenance issues that appear to need attention. If there aren’t sufficient funds, there is the possibility that you will have to fork out thousands of dollars down the track on top of your mortgage.

strata title report

These extra costs are called "special levies" which are raised to attend to maintenance or refurbishment matters. A strata report will help forewarn you about this type of situation.

3. A Building Committee You Can Trust

When buying into a strata complex, having a committee you can trust, which make competent and reliable decisions, can make an enormous difference to the wallets of apartment owners. It is important to know whether the committee is keeping thorough and up-to-date records of where and how they are spending funds.

At Besafe Property Inspections, we look at the quality of decisions the committee is making to see if there are any issues in this regard. An example of this can be that owners are unhappy and expressed their concerns because they pay hundreds of dollars each month for garden maintenance when there are only a few small patches of lawn to be mowed.

4. Insurance

Insurance is an extremely important focus of your strata report, and these details should be carefully checked and provided to you prior to entering into any in-depth negotiations. All strata schemes must be insured. A strata report by Besafe Property Inspections will outline the insurance details and range of policies held, as well as highlight any possible gaps in coverage.

strata title report

5. Lifestyle

A strata report can provide insight into any lifestyle regulations imposed by the strata committee such as parking allocations, rules on pet ownership, and any approval requirements or restrictions on renovations or refurbishments. A strata report will also uncover any major disputes between occupants, or between occupants and the strata committee.

strata title report

A strata report can assist you in assessing whether these could disrupt your lifestyle and peace of mind.

Conclusion

The best way to enhance the disclosure documents that you will receive as part of your investment is to utilise the services of a professional inspection company and request a strata report. The cost is nominal compared to the headaches and money it can save you.

So before you seriously consider purchasing a strata-titled unit, contact Besafe Property Inspections. Our highly detailed yet easy to understand Strata Title Reports will uncover any documented evidence or trouble with owners and residents, ensuring you can make an informed and valued decision prior to entering into a property contract.

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