3 Reasons to Get a Strata Records Report Before You Buy.
Why should you get a strata records report?
If you buy into a strata scheme you are purchasing a share in a community and not just your unit, so you need to know what you are buying.
A pre-purchase Strata Records Report is an analysis of the records of the strata company. This includes financial, management, behavioural and boundary information relating to the whole strata property. Whereas, a strata building inspection report only reports on issues within the single unit.
1. Renegotiate for more favourable terms.
An inspection of strata company records may uncover issues which require significant funds in the near future eg. lift replacement, roof repair, etc. You get caught owing many thousands of dollars in additional levy fees for repair to the common property, shortly after you purchase.
This information may help you to renegotiate more favourable terms, but the information will not available in a strata building inspection report.
2. Withdraw from the purchase.
The strata records report may provide information about the behaviour of other residents that will significantly affect the living conditions within the unit. You may choose to withdraw from the purchase, avoiding an expensive problem. Would you be prepared to lose sleep every night or never be able to hold a tenant, because of a problem owner? This information is not available in a strata building inspection report.
3. Complete the purchase with peace of mind.
Receiving a positive strata records report on the whole strata property provides peace of mind. You can complete your due diligence and be confident you are not buying a lemon. You want to know that the strata scheme is well managed, appropriated financed and harmonious. A strata building inspection report will not provide this information.
A purchase into a strata scheme is a major investment, so don’t rely on luck. A strata records report lets you know what you are buying before you commit.
Knowledge is power …… and peace of mind.