What is a strata inspection report?
Learn what a strata inspection report is, what it covers, and why you might need it when considering a strata-titled property.
If you’re looking to purchase a strata-titled apartment, unit, or townhouse within a complex, you may consider getting a strata inspection report to help you make an informed decision.
What is strata?
Strata, also commonly known as strata title or strata scheme, allows for individual ownership of part of a property.
A strata-titled property is one that is owned by multiple people. When you acquire an apartment, unit, or townhouse within a complex, you also become a part-owner of the building’s common areas.
This means you become partially responsible for handling any issues that arise with these shared spaces.
Strata obligations are managed through an Owners Corporation, also sometimes called a Body Corporate, which is a legal entity.
What is a strata inspection?
A strata inspection involves a comprehensive evaluation of the accounts and records of a strata-titled apartment or unit.
A strata inspection report typically includes:
- Building condition, including any defects
- Past and future building maintenance and improvements
- Expenses for the previous two years
- Quarterly levies and special levies
- A sinking fund forecast, which predicts the costs of repairing and replacing parts of the common property in a strata building
- Strata scheme insurance
- Owners Corporation meeting minutes
- Records of any disputes or breaches
What are the benefits of getting a strata inspection?
Getting a strata inspection report before you commit to buying a property can potentially save you lots of headaches and/or pre-empt potential challenges down the road.
Ideally, this report will confirm that the residents and Owners Corporation:
- Don’t have a history of disputes
- The property is managed effectively
- Finances raised by the Owners Corporation are sufficient
However, if the report does uncover problems such as financial mismanagement or structural defects, this provides you with the opportunity to avoid these problems and potentially save yourself thousands.
Who should conduct a strata inspection?
Strata inspections are usually conducted by a specialised strata inspector or a solicitor. It’s important to note that strata inspections can take a few days to complete, so please factor in this timeframe before you consider making an offer on a property.
How much does a strata inspection cost?
Strata inspections vary in cost but will typically cost a few hundred dollars.
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Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.
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Unloan is a division of Commonwealth Bank of Australia.
Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum loyalty discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing. When is this applicable? Whenever we make a marketing reference to Unloan as part of an article. Example below: At Unloan, we’re saying no to refinancing fees with our no fee promise. That’s right, unlike other lenders, we don’t charge annual, application, banking, account, transaction, late or exit fees*. That way you can enjoy a competitive interest rate and save money on your fees. Take a look at what it’s like to refinance with Unloan. www.unloan.com.au/learn/lets-talk-about-the-fees-associated-with-home-loan-refinancing
