Pittwater Life July 2019 Issue

established.
In a property beyond
three levels, home warranty
insurance cover is no longer
required for new apartments
over three levels. In New South
Wales there is instead a 2%
bond scheme to cover defects
identified in the first two
years of a new building. There
are also statutory warranties
provided by the builder for all
defects identified in the first
two years, and major defects
found within the first six
years.
If looking at an established
building, look at the building
as a whole – particularly the
common property areas i.e.
the areas available to all
and for whom the Owners
Corporation is responsible.
You may be shown a unit
which has been beautifully
renovated – but what does
the rest of the building look
like? Is the wallpaper tired
and scuffed... is the carpet
clean or worn... are there
water stains or cracks... has
the garden had attention and
the lawns mown? If not, the
Owners Corporation and those
who live there don’t appear
to have any pride or good
management of the building.
In our earlier columns we
noted “... if purchasing a strata
property, a strata inspection
may cost a few hundred
dollars but better before you
commit than many thousands
of dollars after taking
possession and possibly in the
years to come”.
So, what is a Strata
Inspection Report? If you are
intending to purchase a strata
unit you should obtain a Strata
Inspection Report before
exchange or during the initial
period. You should obtain it
yourself i.e. an independent
report made for you – not one
offered to you by the vendor
which has been prepared for
his/her purposes, not yours.
The report should contain
some of the following details:
n Strata roll information
setting out the details of the
lot owner;
n Strata plan;
n Certificate of title – relating
to the lot you wish to
purchase and the certificate
of title of the common
property;
n Strata Bylaws often model
bylaws, namely the rules
of the strata plan and any
additional bylaws and draft
bylaws yet to be registered;
n Details of the Strata
managing agent;
n Details of any asbestos
report;
n Whether there is any
evidence of disharmony in
the strata scheme/ this can
be gleaned from a careful
reading of the Minutes of
Strata Committee Meetings;
n Financial records for the
strata scheme – very
important;
n Amount of funds in the
administrative fund;
n Amount of funds in capital
works fund;
n Current levy amounts per
lot;
Is the strata scheme properly
retaining records?
n Details of the executive
committee;
n Details with respect to
insurance for the strata
scheme;
Is the strata scheme compliant
with fire safety, and work
health and safety matters?
n Details with respect to any
major building works;
n Copies of all recent
maintenance and defect
reports;
n Date of expiry of the
statutory warranty period;
n Details of noise complaints
in the scheme;
n Copies of any mediation,
or NCAT application and
orders issued. Details of
any cladding or orders
associated with cladding;
n Notices or orders issued
by a government authority
against the owners
corporation;
n Details of any water entry
complaints, including
history of any burst pipes;
and
n Details of any pending or
proposed special expenses
of the owners corporation
not related to repair and
maintenance.
To purchase a strata
property will likely cost
hundreds of thousands
of dollars together with
substantial stamp duty and
other costs. It is therefore a
prudent step to conduct the
widest possible enquiries
before exchange of contracts
and as far as possible
avoid the tragic problems
confronting Sydney Olympic
Park Opal Tower and Mascot
Towers owners.
* Should readers wish
to contact the writer
concerning matters raised
in this column or any other
issue our hours of business
are 9am-5.30pm, Monday to
Friday. Call 9973 2011.
Comment supplied by
Jennifer Harris, of Jennifer
Harris & Associates, Solicitors,
4/57 Avalon Parade,
Avalon Beach.
T: 9973 2011. F: 9918 3290.
E: jennifer@jenniferharris.com.au
W: www.jenniferharris.com.au
Business Life
The Local Voice Since 1991
JULY 2019 55