Just wondering what would be some things to ask or look for when buying apartments like strata titles?
mat.Mat,
When buying a strata unit or apartment, there are definately questions you should be asking. Obvious ones like the amount of the fees, who manages it, has there been any work done on the properties through strata, and make sure you get your copy of the strata minutes for the last two years. I know this is a requirement of the agent to give it to you, but i have heard so many stories where the agent has not given it to purchasers.
Thoroughly read the strata minutes, because this will tell you alot about what has been happening with the property you are about to buy, and or the property next to it.
I know in the strata i bought, there was a mention of a tree being cut down in front of my unit, i questioned why that had been cut down, and it turns out they did it to ensure termites wouldnt enter the property. Problem was, they left the tree stump there which did have termites in it. I had my pest report done, showed it to the agent, and ended up getting another 3000 off the purchase price, after the contract was signed! This is pretty much unheard of, and we had to add an addendum to the contract to change the price. In the end, it only cost us 800 dollars to get the whole unit treated. So it is important to check EVERYTHING out.
Ask what the neighbours are like. The agent is not allowed to lie to you, (although so many do) My neighbours have not been so good, luckily im the new strata manger for my unit, so i was able to sort it out!!
Also ask questions about the other owners from the strata manager if you can. If they are really slack and never come to meetings, it can be hard to repair things if they need to be done, because you need a certain amount of votes.
Read the strata bi-laws that the agent must give you, and try to understand them. This will teach you alot about strata. If you are unsure still, do some searches, there is plenty of good info out there on the net.
If you decide to go through with the purchase, and need to ask some questions, i would be happy to help, you can email me.
[biggrin]Mat
Depending on what state you are buying in there is no requirement for the agent to supply the last two years AGM minutes. Ask your solicitor to arrange for a search of the strata scheme records, and you will receive a report on things such as the financial status of the owners corporation, any pending additional levies, planned major works, any disputes etc. The searcher knows what to look for in the records. The minutes may not mention matters that happen throughout the year.
Most strata managers will not tell you more than the most basic details and will advise you to obtain a search. It is not reasonable to ring up and expect them to give you a run down on the building off the top of their head, nor are they being paid to do so. They could spend all day fielding questions from possible purchasers!
Wake
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