The Importance of Pre-Purchase Strata Reports
If you're considering the purchase of a strata apartment, before you make an offer on the unit you've fallen for, you should take the prudent move of getting a pre-purchase strata report. Why you may ask; you've been given all the information you need regarding fees and rules by the real estate agent selling the property. Read on to find out what a strata report will offer you.
Why Do You Need a Pre-Purchase Report?
When you're searching for a home to buy, it's all about location. Once you've found the home you want, your mantra should shift to protection. After all, buying a home is probably the single largest purchase you'll ever make. This purchase comes with the added importance of it being your home. As such, you'll want to be as certain as possible that you're making the right choice for you. You can rely on the information an agent provides. But should you?
The real estate agent will usually provide a purchase report to prospective buyers. However, the real estate agent is working for their client, not you, and these reports at best are usually brief with potential issues they've found being touched on only lightly, without any clarification.
An agent does have a legal requirement for disclosure when it comes to the list of existing reports pertaining to the property they are selling. However, this obligation arises only at the time when a purchaser asks for the contract of sale. Additionally, the estate agent only has to keep a record of the reports they are aware of. There is no obligation on their part to dig deep to find any reports that may have previously been done.
It's also important to know that the vendor and any inspector they may have hired have no legal obligation to tell the real estate agent of any existing reports and their content. Thus, as long as the agent adheres to their obligation of disclosure at the point of a request for the contract of sale, they are doing their job within the legal boundaries.
Which Pre-Purchase Reports Do You Really Need?
There are a number of pre-purchase reports you can commission on your prospective purchase. You may want to consider a pest inspection in addition to a pre-purchase strata report. However, if you can only pay for one, then consider the strata report essential. It will allow you to see just how well the building is managed. It will also give you a good idea of just how much your fees and levies are going to end up being. You'll want to know that the building is sound and not due any major works in the foreseeable future. Any major works could potentially cost you huge sums of money in levies that you might not have factored into your budget.
