When going through a Strata Report, consider the following important areas:
- Look at the body corporate's financial records to understand their stability. This includes reviewing levies, unpaid debts, and any planned future capital works, which can indicate potential financial risks. Pay special attention to any mention of a “Special Levy” in meeting minutes.
- Look for any ongoing disputes or legal issues connected to the property.
- Review the property’s maintenance history, including any repairs or defects. This will help you understand the overall condition of the property and anticipate future maintenance requirements. This is important if there may be large amounts pulled out of the sinking or admin funds, which may in the future cause a Special Levy to recoup funds.
- Understand the property’s by-laws which are generally under the Form 14, which outline your rights and obligations as an owner, as well as any restrictions on your property use, and common area.
- Finally, look at the body corporate insurance, ensuring it has satisfactory insurance for common areas and shared assets. Review the level of coverage and what is included in the policy.
