Top Tips When Buying Strata Property

Do you intend to purchase property with a strata title? It could be you want to buy an apartment or subdivided land. The excerpt below discusses the various considerations you should make when buying a property with a strata title.

Due Diligence

Your conveyancer will conduct some due diligence to establish whether the property is reasonably priced. Besides, he or she may be interested in its history. For example, this history might include information about how many people have lived in the apartment and the duration each person lived in the building. An apartment with high turnover may have serious problems. Besides, you may also want to know about property renovations and improvements. The conveyancer will also organise a home visit and building inspection to examine the condition of the property. 

Maintenance Costs

Once you purchase the property, you join the owners' corporation, and you will have to pay for the maintenance of common areas. These areas include the staircase, park, swimming pool, roof, and parking area. Check the amount you will have to pay and inquire how and when you should make the payments. In some cases, all tenants pay an equal amount. In other cases, the amount paid is based on the square footage of your property. Other than maintenance costs, you will also contribute some money towards property insurance, security and the costs of running the owners' corporation.  

Current Liabilities

The owners' corporation may have a home improvement loan used to renovate the roof or install a swimming pool on the property. Inquire if you will contribute to pay this loan.  Most buyers would be uncomfortable repaying a loan for a facility that they will not use. 

Bylaws

Your conveyancer should provide you with a copy of the owners' corporation bylaws. He or she will also explain any legal terms in the document. Some of your concerns should include the following: 

1. Use of common areas. For instance, how many parking slots are you allocated? Are there restrictions on the use of pools and parks?
2. Is there a cap on maintenance and repair costs? This prevents the body corporate from making unnecessary repairs on the property.
3. Check if you are allowed to keep pets on the property.
4. The bylaws may prohibit activities such as holding parties at night. 

Owners Corporation

You may also be interested in the composition and operation of the body corporate. For instance, what is the background of the elected officials? Have members made complaints against these officials? Check if the corporation has a manager. The conveyancer should also provide minutes to the last owners' corporation meeting. 

When buying a property with a strata title, conduct due diligence, check the maintenance costs, current liabilities, the bylaws, and the composition of the owners' corporation.

To learn more about buying a property with a strata title, contact a legal professional offering conveyancing services in your area.

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