There are particular issues related to buying a strata unit. Effectively, you are buying into a strata corporation and will become a member of the strata corporation. As well as being responsible for maintaining your own unit, you will share the responsibility for maintaining the common property (the external structure and foundations of the buildings and pipes, cables, wires, ducts and drains).
As a prospective purchaser, you may apply to the strata corporation for a range of information for moderate fees (see The strata corporation: Access to information by unit holders).
If you enter a contract, the vendor must provide certain information (see below), including the notice in Division 3 of the Schedule of Form 1, which sets out a range of issues to consider when buying into a strata corporation. The following issues are part of the notice:
Along with the information that must be provided in relation to any proposed sale of land, certain information about a strata corporation must also be provided under Division 2 of the Schedule of Form 1, Land and Business (Sale and Conveyancing) Regulations 2010:
- particulars of contributions payable in relation to the unit, including details of arrears of contributions related to the unit;
- particulars of the assets and liabilities of the strata corporation;
- particulars of expenditure that the strata corporation has incurred, or has resolved to incur, and to which the unit holder of the unit must contribute, or is likely to be required to contribute; and
- particulars of the unit entitlement of the unit.
The following documents should also be provided:
- a copy of the minutes of the general meetings of the strata corporation and management committee for the preceding 2 years;
- a copy of the statement of accounts of the strata corporation last prepared;
- a copy of current policies of insurance taken out by the strata corporation; and
- a copy of the articles of the strata corporation (copies of the articles may also be obtained from the Lands Titles Registration Office).
Note that, if the vendor has no agent but the purchaser has an agent, the purchaser’s agent must apply for the information s 9(2) Land and Business (Sale and Conveyancing) Act 1994.
The notice in Division 3 of the Schedule of Form 1 must also be provided to the purchaser. This notice sets out a range of issues to consider when buying into a strata corporation.
You are entitled to inspect [s 41(1), reg 11]:
- a copy of the accounting records of the corporation (fee: $5);
- the minute books of the corporation (fee: $5);
- any documents received by the strata corporation from the original registered proprietor under s 38(3) (fee: $5);
- a copy of any contract with a strata manager (no fee); and
- the register of unit holders (no fee).
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