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Strata Searches

A strata title exists in order to separate a building into units and common property.  The common property is looked after by a body corporate which is automatically formed when the strata plan is registered.  Every person that owns a unit is a member of the body corporate, and the body corporate is responsible for maintaining the common property.  The maintenance is funded by the members of the body corporate.  Usually, the general fees are enough to pay for most work on the common property but if there is a large or urgent project that is to be undertaken, the cost is divided between all of the members of the body corporate.  In this way, a unit owner shares the assets of buying into the property, but also the risks.

Why Conduct a Strata Search?

The risk of buying into a body corporate is the primary reason that strata searches are carried out.  You should undertake a strata search in order to find out the following:

• to ensure that there are no insurance claims where the liability limits have been exceeded
  
• to find out the quality of the repairs and maintenance carried out on the building
  
• to find out if there are any serious disputes within the building that may impact on the purchaser’s lifestyle
  
• to ensure that statutory duties are being complied with and correct records are being kept
  
• to ensure that the current owner is not selling in order to avoid large costs for repairing common property
  
• to ensure that the seller is not breaching any contractual obligations or warranties
  
• to ensure that the community is happy and harmonious, without any serious disputes between neighbours
  
• to find out if pets are allowed or not
  
• to find out if the strata plan has applied for or has an existing loan as the new owner will inherit the balance of the loan repayments in the form of increased financial contributions to the body corporate

A strata search should always be carried out before any commitment to purchasing a property is made.

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