Short answer: Yes. If you are buying strata property, a Strata Report is one of the most valuable checks you can make before signing anything. It shows the status of the Owners Corporation's finances, what works are being done to the property and whether there have been any issues reported by owners, among other things. Strata reports usually cost between $200 and $500, a small price to pay compared to the risk of buying blind.
Why a Strata Report matters If you are considering purchasing strata property, we strongly recommend that you get a Strata Report. The strata inspector will review the Owners Corporation's finances, meetings and decisions and presents all of that information for you to consider before you commit.
What we have found in Strata Reports Over the years, Strata Reports have uncovered some surprising issues that our clients knew nothing about. One entire apartment complex flooded so severely each summer that it could have been marketed as waterfront. In another, residents were suing each other over the Owners Corporation's management, and it had led to more than one brawl in the carpark (this has actually come up twice). Asbestos turns up regularly in older complexes, and how well it has been maintained matters both to the Owners Corporation's bottom line and to your health. Mould is another common finding. One complex was prone to electrical fires and was likely to be demolished at some point, or to burn down if the demolition did not come soon enough. Cracking is another typical problem. We’ve also seen strata complexes that technically had no street access. Then there was the apartment that had been beautifully renovated without any of the approvals required, which happens a lot. Needless to say, the client in each of these cases decided not to buy.
What a Strata Report costs and how to get one The vendor will normally have a Strata Report prepared, and you can access it for a fee. If they do not, a report usually costs between $200 and $500 and is well worth it. If you need a recommendation, we can put you in touch with a number of well respected strata inspectors. We are also well experienced in advising on strata issues, so please get in touch before you exchange contracts.
This article is general information only and isn't legal advice. Everyone's circumstances are different so please seek professional legal advice tailored to your needs.
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