A Strata Inspection Report may also be referred to as an Owners Corporation Report in Victoria and it is a vital report that a buyer should obtain prior to purchasing or bidding on a property to purchase that is strata titled, company titled or community titled.
Purchasing a property is a huge financial investment, as such it is vital to ensure that you have done your due diligence to avoid any large unexpected expenses, repairs and stress with your new property.
It is prudent that you allow in your budget a few hundred dollars to purchase a Strata Inspection Report from a qualified inspection company, who have extensive strata management experience and are able to provide you with the information you need to make informed decisions with your property purchase.
It is essential that as a potential buyer you are informed of the governance and operation of the owners corporation, to allow you to understand your role and responsibility as a member of the owners corporation which is effective as soon as settlement takes place.
A prospective buyer who has obtained a Strata Inspection Report is armed with the knowledge and power to manage the entire purchase process and negotiate on a suitable purchase price.
Below is just some of the essential information that may be included in SRV’s Strata Inspection Report for your information:
- The current strata manager
- The current owner
- The committee and what their roles are on the committee
- How long the current committee have been in place
- What your fee contributions and liabilities are and what the overall liabilities are at the property. This allows you to work out exactly what you will be paying and how your quarterly fees are calculated.
- What your voting power (entitlement) is within the owners corporation
- Whether there any proposed special contributions/fees
- How the overall budget has been tracking
- Whether there any upcoming major works that you should be aware of and whether the owners corporation raised monies for those works
- Any current legal matters
- Whether there is a maintenance plan and/or a maintenance fund
- Copy of any special rules
- Determine whether there any major disputes
- The current value of the building and when the last valuation was carried out
- The current financial position of the owners corporation and what it has historically being like
- The insurance for the building and the insured amount
- Any building reports on file
- Copies of minutes from committee meetings, annual general meeting and special meetings