This article provides details about ‘What is a strata inspection report’.
A strata inspection report (also known as a strata search, Owners Corporation Records Inspection or Section 108) is a report that all purchasers of a strata titled, community titled or company titled property should invest in whether this is a residential or commercial property.
The Strata Inspection Report is similar to a building report when someone buys a house. The records of the Owners Corporation must comply with the Strata Schemes Management Act 2015. By no means do we suggest that this replaces a building inspection report. The big difference is a Strata Inspection Report will report on the building, also known as the Strata Scheme. It should provide precise details of what is happening within the building or complex.
The Strata Inspection Report will contain information such as:
- Who is the current owner?
- What are the quarterly levies for the property?
- What are your voting rights? What is your unit entitlement?
- When are the levies paid to?
- Have there been or are there any current or proposed Special Levies (additional contributions outside your quarterly levies that may be raised for building defects or major works)?
- Does the Strata Scheme comply with Fire Requirements, Work Health & Safety Obligations and Asbestos Management?
- Is there any information in the records approving animals? Are animals permitted?
- How much is in the capital works or sinking fund and the administrative fund? Are any of the funds in deficit?
- Are there any current legal matters? Have there been any legal matters in the past 3 years?
- Building Defects or Home Owner Warranty Claims for Defects;
- Breaches of by-Laws (rules and regulations for this building);
- Is there any disharmony?
- Major income and expenditure over the past 3 years;
- Proposed major expenditure;
- What is the current value of the building?
- Is the building insured and if so adequately insured? (details of the insurance and cover);
- Are there any compliance related matters within the records such as window and balcony compliance?
- Is there a sinking fund forecast / maintenance plan? (a report prepared detailing what the levy contributions should be over the next 10-15 years including detailed maintenance);
- Are there any known disputes within the Strata Scheme;
- Copies of Annual General Meeting Minutes, Extraordinary General Meeting Minutes and Executive Committee Meeting Minutes;
- Copies of building reports, extracts from compliance reports.
Every buyer considering the purchase of a strata titled property, whether it be Residential or Commercial, should engage the services of a fully qualified inspection company with an extensive property background.
Paul Mulligan
Paul Mulligan Property Group
M: 0417 766 009
E: admin@paulmulligan.com.au
Strata Defects & Risky Buildings – Watch this before buying an apartment
Before engaging a company to conduct an inspection of the Owners Corporation Records, make sure you ask the company what property background their inspectors have.
Have a question or something to add to the article? Leave a comment below.
Read next:
- NSW: Q&A Who determines which documents form the Strata records?
- Why is a Strata Inspection Report so important if I am considering buying a Unit, Apartment, townhouse villa or commercial property within a Strata Scheme?
Visit our Renting / Buying / Selling Strata Property OR Strata Information Pages by State pages.
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In WA Form 28 and 29 are Compulsory Disclosure Statements and must include all relevant data for that specific Lot being purchased including all meeting minutes and expenditures plus any written or supporting agreements with contractors for work that was included with the approval of the Strata scheme The Body Corporate must provide this information prior to settlement
Hi Sharon,
We are an inspection company and do Strata Records Inspections all the time. The price we are usually charged at a Strata office to get access to records is $34.10. You may also charge for printing/copying costs, these prices vary between strata offices.
Kind Regards
The EYEON Property Inspections Team
Hi,
We are a Body Corporate. Recently we received a request from a Strata Search Company for our records so they can sell a Strata Report to a prospective buyer. We are wondering if we should charge them for our information? Is this a legitimate idea?
Sharon.
We have received this question via email regarding the contents of Strata Searches:
Hi,
I am looking at your article about strata reports. I was just wondering how far back the documents would go, for example, would it be 5 years worth of information or less (or more) when it comes to the following:
Copies of Annual General Meeting Minutes, Extraordinary General Meeting Minutes and Executive Committee Meeting Minutes
Would any email correspondence within this time be included as well? Some buildings are very old so I can’t imagine absolutely everything will included. I’m in NSW.
Thanks
Good Morning,
It really depends on the strata management office and the way their records are being kept.
In most cases, our inspectors look at at least 5 years worth of records and supply at least 3 years worth of records in the report if there was not much going on in the building.
If the building has a history of issues, e.g. building works, litigation etc we would include as much relevant information as possible, meaning it can go back 5 years in records and/or more if applicable.
Any important correspondence that was made available to our inspector during the inspection will be included. It is important to understand however that we won’t have access to strata manager’s email so we can only provide what’s been loaded up in the searching system or printed out for our inspector if the records are stored in hard-copy.
We hope this helps.
Kind Regards,
The EYEON Team
I agree with Jeanette a Strata Inspection Report will generally give a prospective purchaser more information than a building report. It is a full history of the building since the Strata Scheme was established.
One of the latest stories I have been advised of is a young man purchasing a property on the Northern Beaches of Sydney. The property had a Fire Order from Council which rectification costs can run into $100,000’s. The disappointing part of this story is the Real Estate Agent who sold him the property resided in the building as an owner and did not disclose this.
For the sake of a few hundred dollars I recommend any prospective purchaser in Australia seek the services of a qualified Strata Records Inspector in their respective State. It could be the saving grace of huge headache.
I have just received this comment via the sites comment form from Jeanette Anderson, Strata Data WA:
Hi Nikki
Great article by Paul Mulligan!
I am constantly amazed that people go to so much trouble when spending $25K (or less) on a a new vehicle to inquire about the “Bells and Whistles” however when spending 100’s of 1,000’s $’s on a strata investment do not do basic research about the strata company they will be investing in?
In WA, the information provided by the agent on the Form 28 & 29 only covers information pertaining to the lot. It does not included information of what is happening within the building complex. Only a search of the strata company records will give a Purchaser a “feel” for the culture of the strata company they will be investing in. Savvy Purchaser’s are looking at the decisions made by the strata company/COO and how those decisions will impact on their lifestyle/investment.
J Anderson
Strata Date (WA)