What Is a Strata Inspection Report?

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.

This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍