What Is A Strata Report?

What is a Strata Report?

Strata schemes have strict rules about making decisions

Those rules are designed to protect all the lot owners’ rights

Part of those rules is the requirement to keep extensive written records

An investigation of a strata schemes records is called a Strata Inspection

A specialist agent may be appointed to do the inspection on your behalf

The agent will produce a Strata Report … that’s what we do

Strata reports for buyers, andStrata reports for sellers

There are different types of Strata Reports. The most common being

Strata Reports for buyers

Buying in a strata scheme is different from buying a house

A body corporate means, essentially, shared living and investing

As a lot owner you must pay levies, your share of common property costs

Just like any building the common property may have significant defect problems

And if any works are required then the combined lot owners will need to pay the costs

Communal living is regulated through the schemes by-laws

Which sometimes don’t work out so well

Disputes will affect residents, whether that’s you or a tenant

Given the potential risks purchasers have a right to undertake due diligence investigations

Including the option to look at the private records of the strata scheme

Smart buyers commission a Strata Report before fully committing to the purchase

There’s no real way to know for sure how a property is going to perform

But a peek at the history of the scheme will provide some clues

A Strata Report will also identify any major issues the body corporate is dealing with

Allowing the purchaser to walk away from potentially messy situations

Or renegotiate the purchase price for more favourable terms

At the least a pre purchase Strata Report will familiarise you with your new community

Strata Reports for sellers

QLD has disclosure requirements when selling lots in strata schemes

A section 206 disclosure statement sets out current levies payable by the lot being sold

A contract must include a current disclosure to proceed

The lot owner is responsible for providing the disclosure

Disclosures do expire so the best time to get one is when preparing a contract

Disclosure statements may be obtained from the body corporate manager or a search agent

Search agents are usually quicker

There are other types of strata reports such as Management Rights Reports

And other times strata inspections are required such as to gather evidence for a court case

If you need a Strata Report on a body corporate in South East Queensland we can help you

To find out more about reports for buyers click here and reports for sellers click here