The Strata Inspection Report – Apartment Buying 101

A Strata Inspection Report is a detailed account of anything that relates to an apartment building. Brisbane apartment buyers are strongly recommended to take the extra step in ensuring a good buy. The inspection will not only let you see the financial, structural, and management state of the apartment, it will also save you money by putting on a more competitive offer.

Strata Inspection Report VS Property Inspection Report

The property inspection report is what you usually get when buying a house. It is also applicable to buying apartments. The Strata Inspection report is in addition to the property report. The property inspection report will look into the physical state of the property within the four walls of the apartment, while the strata inspection report will examine the entire building and/or complex.

Included in the Strata Inspection Report

-          Certificate of Title – ownership of the apartment

-          Financial records

-          Updated insurance policies

-          Accounting records of the building, including income and expenditures

-          Supplier agreements

-          Maintenance and upkeep levy – amount to be paid

-          Special, current, and on-going levy budget

-          Management records

-          Structural records of any major defect

-          Any proposed major expenditure

-          Minutes of the meeting – both executive committee and general meetings

-          Notices served, previous, and pending cases against the building

-          Your individual voting rights and entitlement of your unit

-          Building restrictions

-          Compliance reports of the building – Fire Department, Health and Sanitation, etc.

-          Rules and Regulations – established by the Home Owners Association

-          Building plans

How, When and Who

How to get a Strata Inspection Report –You have to include in the purchase contract the inspection condition and that sellers have to provide you all required building documents for the review. You can commission a professional building documents reviewer or inspector. The reviewer will then furnish you a detailed report based on the documents and give recommendations like reducing the offer price due to some foreseen problems or even withdraw the offer if the property proves to be a bad investment.

When to get the Strata Inspection Report – After you’ve written and the seller accepted your offer, you have few days to conduct due diligence. Depending on the conditions of the purchase contract, the sellers of the Brisbane apartment will provide the required documents and/or access to the property for you and/or your inspectors to properly assess the home.

Who to hire for the Strata Inspection Report – Make sure that you hire a professional inspector with extensive experience reviewing documents of similar properties. Hire somebody local, with strong property knowledge base and legal background. Your Brisbane real estate agent can recommend several inspectors who are highly qualified and whom they have worked with before. But don’t rely on their word, do your homework and do a background check before deciding on who to hire.

Property inspections and reviews like the strata inspection reports are not required when purchasing apartments in Brisbane. Costs are shouldered by the buyer. Despite the additional cost, do not forgo your only chance to look closer into the property you are buying. Defects and problems discovered after you’ve signed on the contract are yours and yours alone to manage. They are no longer open to negotiation with the previous owner.