Hi, I am in the process of purchasing a unit in Sydney in a block of about 30 that the developer has owned for about the last 10 years and is now selling them all off. There is no body corporate and my conveyancing solicitor has suggested getting a strata search done. I'm a bit confused as to why I need a strata search done when there is no body corporate? Are there any risks of purchasing this unit with no body corporate set up? Is there anything I should be looking into? Apparently once they are all sold off there will be one set up. Any advise would be greatly appreciated as I'm at the stage where we are ready to exchange contracts.
If there's no Body Corp I assume there would be no minuted meetings so you wouldn't get much information except for moneies in the accounts.
Is there a strata company? If so get the owners permission (letter) and make an appointment and go and look ast the books. They usually charge a nominal fee ($30).
If there is no money in the admin fund or the sinking fund (which is highly likely) the first thing everyone will need to do is pay a year in advance of enough fees to establish them. So add a few thousand $ to your price. If there are no minutes you don't know the condition of the building. It could be falling apart. Maybe get a building report (I don't worry with units but you get the info from the strata report).
If they are selling them all of, maybe they have had one done?
If you don't mind give me the address I can look it up on RPdata to see if it's right about one owner. You can PM me if you don't want to make it public.There are specific requirements with regards to the developer appointing a strata manager once a % of the building has been sold. They will also be required to establish the sinking and admin fund, so you are not out of pocket for a heap of extra $$.
Are all of the units being sold off or will the developer hold a controlling interest?
There may be cause in this instance to have a building and pest inspection done to safeguard your own interest (ie what does the owner know that isn't being disclosed, is there major maintenance required? Possibly check with some of the tenants you see living there, they may know of issues that the owner hasn't addressed.
I would suggest speaking with your solicitor about the requirements of the vendor to establish a BC and make adequate provisions for R&M in the sinking fund.
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