Strata building inspections are a ‘must do’ for anyone thinking about purchasing property in a strata-managed block. Outlining financial and managerial matters such as fees, levies and meetings, as well as any future construction or major works planned, a strata report can be a useful tool and negotiating point in the pre-purchase process. A strata report may also detail past disputes between neighbours within the building and past strata meeting minutes.

Introduced in New South Wales under the Conveyancing (Strata Titles) Act 1961 (most recently the Strata Schemes Management Regulation 2002), strata is a system devised to manage legal ownership of multi-levelled apartment blocks and other shared or multi-levelled buildings. Strata can cover buildings such as apartments and duplexes, high rises, offices, factories, retail property and villas.

Strata-managed buildings will typically include some form of shared facilities or property such as laundries, gardens, swimming pools and gyms. Strata levies pay for the maintenance of these facilities and also contribute to a fund in case plumbing work and other types of general building maintenance are required. In theory, the more facilities a building or complex possesses, the more the strata fees will be.

Other typical common property within shared blocks includes stairwells, roof, main doors and gates, driveways, garages, lifts, common walls, windows and balconies, foyers, meeting rooms and security intercom systems. Some complexes may even hire security guards, door people or reception staff, in which case this will be covered by strata fees too. Occasionally, exclusive use of a facility, such as a car space, may be granted to an owner. In this case maintenance fees will be paid for by that individual and not the shared strata fund.

How can a strata report help you? Let’s just say you’ve purchased an apartment and find out a month later that there are existing plans for swimming pool construction. Your strata fees would instantly rise. This may work out if you actually want a swimming pool, but if not then it’s just another fee to pay. Had you arranged a pre-purchase strata report, you would have known about the swimming pool before buying the apartment.

Other essential information that a strata report may detail include:
• Cost of levies
• Existence of any special levies
• When levies are due to be payed
• Known building defects
• Insurance details
• Future plans for construction
• Current available funds in the body corporate accounts
• Minutes of past strata meetings
• By-laws
• Past disputes within the building.