Navigating the property market in Western Australia can be challenging, particularly when dealing with strata-titled properties. From understanding levies to grasping by-laws and sinking funds, it’s crucial to have a thorough understanding before submitting an offer. Here’s everything you need to know.
What is a Strata Title Property?
A strata title is a type of property ownership where you own an individual unit or apartment within a complex and share common areas like gardens, pools, and driveways with other residents. A strata company is responsible for the management of common areas, enforcing by-laws, and overseeing financials and ensuring insurance coverage is appropriate.
Key Considerations Before Buying
Understanding Levies and Fees
- Strata Levies: Regular fees that cover maintenance of common areas, insurance, and administration costs.
- Special Levies: Extra charges imposed to cover unexpected expenses like major repairs.
- Sinking Fund: A reserve of money set aside for future capital works or unexpected expenses.
By-Laws and Restrictions
- By-Laws: Rules governing the behaviour of residents and the use of common areas.
- Common By-Laws:
- Noise: Restrictions on noise levels at certain times.
- Pets: Regulations on pet ownership.
- Alterations: Approval process for renovations or modifications to your unit.
Financial Health of the Strata Company
- Strata Financials: Review recent financial statements to assess the strata company’s financial health.
- Reserve Fund Plan: Check for a well-structured reserve fund plan, indicating future capital works.
Maintenance and Upkeep
- Maintenance Schedule: Determine the frequency and quality of maintenance for common areas.
- Repair History: Review past repairs or refurbishments to identify potential future issues.
Strata Insurance
- Building Insurance: Ensures coverage for the building structure and common property.
- Contents Insurance: Consider separate insurance for your personal belongings.
Meeting Minutes and Strata Documents
- Strata Meetings: Review minutes from previous meetings to understand current issues and future plans.
- Strata Plan: A document outlining the layout and boundaries of the property.
- Management Statement: Describes the strata company’s management rules and obligations.
Disputes and Litigation
- Dispute History: Look for a history of disputes among owners or between the strata company and contractors.
- Litigation: Ongoing legal battles can drain resources and escalate levies.
Putting in an Offer
Obtain the strata disclosure statement from the seller to understand the levies, by-laws, and upcoming expenses. Conduct thorough due diligence by seeking legal advice and obtaining a building inspection. Use findings from your due diligence to negotiate favourable terms, such as requesting the seller to cover special levies or repairs.
Everything you need to know about how to buy a strata property
Buying a strata title property in Western Australia can be a fantastic investment or a home for life, but only if you are well-informed. Take the time to understand levies, by-laws, and financials, and ensure that your offer reflects the property’s true value. Doing so will give you confidence and peace of mind in your new home.
For more detailed advice on buying or selling a strata title property in Western Australia, visit Rezzi.
Contact our perth conveyancers if you are wanting to know what to consider when putting in an offer to buy a strata unit, especially if you are only recently in Australia as other costs may be incurred that you need to know about. We can explain what to expect for property transfer fees as we help buyers and sellers transfer their properties smoothly.
