1. Strata Plan
Purpose: The strata plan outlines the layout of the property, including the boundaries of each unit and common areas.
What to Check: Ensure the unit you’re purchasing is accurately represented and that the common property is well-defined.
2. Strata Bylaws
Purpose: Bylaws govern the rules of living within the strata. They cover issues like noise, pet ownership, and renovations.
What to Check: Review for any restrictions that might affect your lifestyle, such as pet policies, rental restrictions, or renovation limitations.
3. Strata Meeting Minutes
Purpose: Minutes from annual general meetings (AGMs) and special meetings provide insight into the community's issues and how they are managed.
What to Check: Look for recurring problems, upcoming major expenses, or conflicts within the strata community.
4. Strata Financial Statements
Purpose: These documents detail the strata’s income and expenses.
What to Check: Assess the financial health by checking for a healthy contingency reserve fund (CRF), low debt levels, and whether the strata is running a surplus or deficit.
5. Contingency Reserve Fund (CRF)
Purpose: The CRF is a savings account for major repairs and replacements.
What to Check: Ensure the CRF is adequately funded to cover upcoming capital projects, like roof replacements or plumbing upgrades.
6. Insurance Certificate
Purpose: The strata’s insurance policy covers the building’s structure and common areas.
What to Check: Confirm that the coverage is sufficient and understand what is included or excluded. Also, check if the deductible is reasonable.
7. Engineering Reports
Purpose: These reports assess the building’s structural integrity and systems, such as plumbing, electrical, and roofing.
What to Check: Look for any significant issues or upcoming repairs that could impact the property’s value or your budget.
8. Special Levies
Purpose: Special levies are additional charges imposed on unit owners for major repairs or unexpected expenses.
What to Check: Review if any special levies have been imposed recently or are anticipated in the near future.
9. Owner Occupancy Ratio
Purpose: The ratio of owner-occupied units to rented units can affect the community’s stability and property values.
What to Check: Higher owner occupancy is generally seen as positive, indicating a more stable community.
10. Legal Matters
Purpose: Review any legal actions or disputes involving the strata corporation.
What to Check: Legal disputes can lead to significant financial liabilities, so ensure there are no ongoing or potential lawsuits that could affect your ownership.
Final Tips:
Seek Professional Advice: It’s advisable to consult with a real estate lawyer or conveyancer to review these documents thoroughly.
Consider a Strata Inspection: Just like a home inspection, a strata inspection can identify potential issues in the building or strata management that may not be immediately evident in the documents.
Reviewing these documents carefully will give you a clearer picture of what you’re getting into and help you make an informed decision.