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Understanding a Strata Inspection Report
05/23/2023
Understanding a Strata Inspection Report
Are you feeling overwhelmed when trying to make sense of a strata inspection report? In this podcast episode, I'll be your guide through the maze of information in a strata inspection report. I want you to feel confident and empowered, so here's a sneak peek of what you'll learn: Understanding the Purpose of the report: Let's start by uncovering the true significance of a strata inspection report and why it is crucial in your property-buying journey. Decoding the Report: Even if the report seems as thick as a novel, I'll help you dive into its depths and find the key elements that truly matter. That way, you can save time and focus on what's important. What to consider when reading the report: 1. Administrative Fund: This fund takes care of day-to-day expenses like electricity bills, water usage bills, cleaning, gardening, building insurance premiums, etc. Make sure there are sufficient savings in this fund. 2. Capital Works Fund: Also known as a sinking fund, it covers major repairs and expenses. Look out for planned or unexpected expenditures and check if the fund has enough money to handle future repairs. 3. Special Levies: Keep an eye out for any history of or proposed special levies. They might indicate future expenses if the funds are insufficient. Consider the amount and instalment plans for the special levies. 4. 10-Year Capital Works Fund Budget: This report predicts expenses for the next decade. Ensure the building has enough funds for upcoming repairs and maintenance. Take into account the current funding level and levies. 5. Compliance: It's essential to verify if the building meets regulations. Look for strata building insurance, public liability coverage, fire safety certificate and child window safety devices certificate. Non-compliance can lead to costly rectifications. 6. Disharmony and Changes: Pay attention to any signs of disharmony within the building, such as noisy neighbours or ongoing litigations. Frequent changes in strata managers may indicate underlying issues. Review the minutes for insights into building decisions. 7. Obtaining the Report: Ideally, you should get your own independent report if you have enough time. If that's not possible, at least pay for the report provided by the agent. Don't hesitate to contact the inspector for clarification. By staying informed and prepared, you'll be well-equipped when purchasing a strata unit. The strata inspection report holds vital details that can greatly impact your decision-making process and financial plans.
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