The Diary of a Strata Property.. Buyers Beware, Sellers Prepare.

Whether you are looking at buying a strata title property or selling one, the strata inspection report will be your best friend when it comes to making the right decisions. 

So what is a strata inspection report? A strata inspection report is a detailed review of a strata scheme’s records that reveals the financial health, by-laws, past or pending building issues, and any disputes within the scheme. It is created by a third party auditing the books and records of a strata scheme (most commonly held by the strata manager), collating a factual report that overviews the property, along with its common areas.   

How does this help when buying?  It will assist by uncovering hidden issues—like building defects, legal disputes, unpaid levies, or poor financial management. Equally, it can also demonstrate how well the building is run and the harmony that the owner’s corporation has when it comes to making decisions about the wellbeing of the property. 

How will it assist with your sale? A strata inspection report can help when selling a property by identifying and addressing issues in advance, giving you the chance to resolve problems, build buyer trust, and speed up the sale with greater transparency and fewer surprises. 

It is not a legal requirement for a vendor to provide a strata inspection report, however I will always recommend it to make sure the sale process is as smooth as possible. Often buyers and their legal representatives are satisfied with this report alone when it comes to their due diligence (along with the contract of sale), but not uncommon for a building report to still be completed depending on the nature of the strata property and/or any issues that may have been identified. 

So when it comes to transacting on a strata title property, make sure to read it’s diary first!