What are the common issues when buying a strata lot?
What are the common issues when buying a strata lot?
When buying a strata lot, it is important that you get to know how that particular strata corporation runs its operations before buying into it. To get as much information as possible, the following documents should be reviewed:
- All minutes taken at strata council meetings, Annual General Meetings and Special General Meetings of the strata corporation, for the 2 years prior to your purchase;
- The Bylaws for that strata corporation;
- The Rules for that strata corporation;
- The strata plan showing the location and area of the buildings and how the common property is owned. You should determine what is limited common property for the exclusive use of 1 or a group of strata lot owners and what is common property for everyone’s use; and
- The Form B and any other pertinent information provided by the strata corporation.
- It may also be a good idea to have an informal conversation with some of your potential neighbors to get a feel for the development you considering buying into.
Some common issues to look for include:
- whether you will be allocated a parking space or a storage locker and whether they will be allocated for your exclusive use as limited common property or as part of your strata lot;
- How much money is in the strata corporation’s contingency reserve fund, which is normally used for extraordinary expenses;
- Whether there are any age restrictions or restrictions on renting your strata lot in the bylaws;
- What type of insurance coverage you will require. The strata corporation is responsible for insuring certain parts of the strata property, including common property, however the strata owner is also responsible for insuring their own strata lot;
Each strata corporation is unique and it is important to investigate how your particular strata is set up before you buy.
