In Part 1, we considered the financial and legal implications of the Strata Report and why it is essential before purchasing a property. However, this report highlights more than just planned repairs and financials.
Strata Report: Existing Legal Claims and other Issues
The Strata Report will reveal whether there have been ongoing legal claims against or by the property against others, and whether a building is adequately insured or not. If either is the case, walk away!
Tennant and Owner Relationships
A Strata report will contain minutes of all Strata meetings, and this will give you important insight into the management style as well as the working relationships - and any concerns - between existing tenants. The last thing you want to do is enter an acrimonious environment with major pre-existing issues between tenants.
The Importance of a great Real Estate Conveyancer
At this stage, you would be forgiven for thinking that it's worth running a mile the moment you see the word ‘Strata’. Indeed, there are many who simply won’t be a good candidate for a co-owned property. However, if you live in the city or in highly dense areas, there is a good chance that you will be part of such an arrangement. Strata have successfully managed millions of homes in Australia. The best thing to do is ensure that you have a great real estate conveyancer who will know exactly what to look for and advise you as to your best interests and important considerations.
Never forget Your Pest and Building Inspections!
Finally, whilst a Strata Report might seem comprehensive, you still need to arrange your own pre-purchases building and pest inspections. Sad but true, there have been cases where owners hide or minimise the severity of extensive repairs required in order not to affect the value of their property. The only way to be sure is to arrange your own and compare this with the Strata report, after all, knowledge is power.
All information contained on this website is for your reference only. You should always make your own enquiries and seek independent legal advice in respect of any information about real estate law and the purchasing of real estate and related subjects. This website may contain hyperlinks to websites operated by parties other than PestBuildLegals. Such hyperlinks are provided for reference only. PestBuildLegals does not control such websites and is not responsible for their contents.