Strata Insights ... What to look for in strata records when buying an apartment

Are you buying an apartment ?

There's a lot to know, think about and decide ... and some of the strata scheme issues are the hardest to know about and understand.

So here are some of my Strata Insights about What to look for in strata records when buying an apartment ....


Strata Insights

If I was buying an apartment and wanted to understand more about what was going on in the strata (and how it affected my investment) this is what I would do before I went ahead.


I’d organise to personally inspect the strata records at the manager’s office.  There’s a fee (under the Act and Regulations), make sure that at least 3 to 5 years records will be available, tell them you may want to make copies and allow a few hours.

At the inspection I’d start by looking at the minutes of all meetings (general meetings and executive committee meetings) for the last 24 months.  Pay particular attention to the decisions (and how they differed from what was proposed) on the following things.

• Regular levies raised (administrative and sinking funds) – for trends and consistency (or not)
• Special levies raised – what for, why and how much
• Litigation the strata scheme is involved in – what’s at stake, how long it’s been going, who is acting, what future costs are likely, etc
• Outstanding levies- how many owners, how much for and how long
• Major repairs – that have been done recently, are planned and/or are indentified as necessary
• Engineers and consultants’ reports – who, what for, what advice was given, proposed action, whether reflected in decision (or ignored), direct impacts on the apartment, likely costs, etc

I’d also check the balances in the sinking fund over the last 3 years.  And, I’d look to see if the budgets have changed much in the last 3 years.

Carefully read any consultants’ reports, legal advices and CTTT notices and orders to understand the bigger issues the strata scheme is facing.

I’d also look out for references of clues to these other things as they could be important.

• Loans to the strata scheme
• Defect claims that been identified, notified, claimed, litigated and/or settled
• Roof membrane problems
• Council orders
• Firs safety problems or upgrades
• Retaining wall issues
• Tree (or tree root) issues
• Disputes with retail shops in the building over activities, etc

Get copies of anything you think is important to make further enquiries, to get advice about and/or to use in your negotiations with the seller.

If anything is missing from the records, find out why and how you can get to see if it relates to any of the matters I’ve outlined here or if you think it’s important.

Once you’ve done all that you’re far more likely to enjoy your ownership of the apartment.

Francesco …