Buy with Confidence: what the Owners Corporation Certificate can Reveal about a Property
Thereis a lot to consider when buying a new property. This is even more true whenpurchasing a property within a Plan of Subdivision or Strata Plan.
Includedin your section 32, will be an Owners Corporation Certificate which should highlight anypotential issues with the property. However, without knowing what to look for,purchasers may be lost in a sea of information.
Mostowners when purchasing a property will be concerned with the cost of stratafees. However, it is worthwhile looking beyond the sales agent’s statement ofinformation so you can determine not only what the fees are currently, butwhether they are likely to increase.
TheOwners Corporation Certificate will include a statement of the financialposition. You should be concerned if the financial statements show adeficit. Conversely, a healthy maintenance fund is a good sign as it shows theproperty is prepared and the likelihood of special levies needing to be raisedis reduced. There will also be a section where any work which may lead toadditional charges will be declared. Here any defects or major projects shouldbe disclosed, the previous year’s AGM minutes should also be reviewed for moredetails.
OwnersCorporation Certificates are required to disclose any building orders orbuilding notices imposed on the property. Works the council imposes can lead tocosts and this is one of the places where you may see combustible claddingdisclosed.
Adifferent problem is difficult personalities which can have a huge impact ofthe quality of life of residents. It is difficult to tell when purchasing aproperty if the other residents are friendly. However, there are giveaways thatmay be included in the certificate. The first is the committee election in theAGM minutes. In most OwnersCorporations, everyone whonominates will be voted on. If the minutes note that committee members arevoting against each other, it can indicate that the committee is fractured.
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