Some inexperienced people may not know which information they should pay the greatest attention to when they receive a pre-purchase strata report. Such people may end up glossing over vital information that would have enabled them to make an informed decision about their desire to purchase a strata property. This article discusses some important attachments that you should read carefully when you receive the pre-purchase strata report.
Sinking Fund Forecast
Strata property owners usually maintain a sinking fund in order to cater for the long-term maintenance needs of the common property. The sinking fund forecast helps the owners of the strata property units to know how much will be required to perform major repairs, such as roof replacement. Each owner then makes an annual contribution to this fund. You should pay special attention to this forecast because it will give you an idea about how much you will be spending as a contribution to that fund in case you buy a strata property unit there.
The Minutes
It is also important for you to read the minutes of the annual general meetings that are attached to the pre-purchase strata report. The minutes will give you an invaluable insight into the issues that the current owners have been facing. The actions taken to resolve those issues will also enlighten you about the responsiveness of the strata manager. It will then be possible for you to predict how easy it will be for you to live in that environment.
By-Law Changes
Another important attachment that you should review carefully is the by-law changes. This document will reveal to you the different changes that the strata owners agreed to make to the standard by-laws that govern all strata properties. For instance, there may be a prohibition of pets on the common property. Reading these changes will help you to determine whether any by-law provisions are a deal breaker for you.
Income and Expenditure Statements
You can get a glimpse into the financial health of the strata property by examining the income and expenditure statements that are attached to the strata report. You will learn whether there are any outstanding dues that some owners have not been remitting. You will also learn whether you will have to meet any dues that weren't paid by the previous owner of the unit that you wish to buy.
Remember that each strata report is unique. The important attachments may therefore vary from one property's report to another. It is advisable for you to seek for clarification from the person who has prepared that pre-purchase report so that he or she highlights the most important sections that you should pay attention to.
