There’s been a lot of talk recently in the media regarding the “defects crisis” in strata schemes throughout Australia. Starting with Combustible cladding fires in Melbourne and egged on with high profile defect cases like those in Olympic Park and the Mascot building in Sydney defects have suddenly become big news.
The media attention is doing a good job of bringing issues to the forefront of buyers’ minds.
For me this has resulted in a marked increase in orders for pre purchase strata reports (PPSR).
To meet demand I’ve recently begun working with contractors in Brisbane, Gold Coast and on the Sunshine Coast. These contractors are “town agents” who attend the manager and obtain documents as directed.
Searches can now be completed quicker. Unfortunately, I’ve created a bottleneck reviewing documents and writing reports. Simply put, I can’t keep up!
Updated Report Format
I’ve reviewed my pre purchase strata report, with a focus on limiting liability and improving disclosure, to be able to provide the same in-depth information with quicker turnaround times.
From 2nd September 2019 I will be switching to the new format PPSR.
The order of the document is changing. There is a new section called “Lot Specific Details” which will group together all information relating to the lot, including exclusive use, lot entitlements, current levies and levy history.
Parts of the document dealing with common property, insurance, financials, compliance and disputes will remain, although in some cases extended to provide clarity regardless the type or size of the scheme.
Most notably, the “HISTORICAL DECISIONS” section will no longer be included. Instead, copies of source documents will be available for download.
Changes to Documents Sourced
I’m finding the volume of documents for some buildings is simply bewildering, with a great deal of repetition. There will be changes here as well.
| Document | Currently | From 2nd September |
| General Meetings | 7 years | 5 years |
| Committee Meetings | 2 years | 1 year |
Other inclusions such as financial statements, owner statements and Sinking Fund Forecast will remain unchanged. Certificates of Currency will be included if available on record.
Community Management Statements will be included where they’re available at search for no charge.
Pricing
Pricing remains the same at $275.
This may need to be reviewed in future.
Moving Forward
I’m excited about this new phase for my business. I plan to provide the same in-depth reports with more speed and surety. I hope you’ll see benefits for your practice as well.
As with any changes there may be some teething issues. I hope that you’ll continue to support me through this process.
Thank you for your business, I appreciate it.
Lisa Rutland
Director MyBodyCorpReport.com.au
Unless stated otherwise all the information on this website relates to Queensland legislation.
Lisa,
We are purchasing a duplex with body corp insurance only .
purchasing as the settlement date is close but not arrived.
already the neighbour has my mobile number , telling me its one building and the money im going to outlay..
the side we are purchasing has been done up well, hers not at all, trees on the roof
is there someway / thing i need to table to stop her?, or
do i just ignore her as an annoying neighbour.?
Hi Michael
Your neighbour is correct in that it is one building. You share insurance and there will be a Community Management Statement and plan with common property.
Hi Lisa,
I am not sure if you can answer to our question but i searched everywhere and don t find an answer…
We want to buy an apartment, 1st home buyers and the agent told us there is a loan taken by the body corp for painting the building some years ago. Is it normal the loan amount to be higher than the sinking fund amount? And if we buy the strata report will this help us in seeing how the money was spent or just show only the amount owned.
A bit confusing for us since we never dealt with strata before. Hope u can guide us if possible.
Thank you.
Hi Catalin
No its not normal for the loan amount to be higher than the sinking fund amount. Loans are usually the result of the sinking fund contributions having been set too low for too long, or, alternatively, more work required than funds available. In the normal course of a body corporate’s life painting is planned and saved for and doesn’t require a loan or special levy. So this is an indicator there may have been or are other ongoing matters. Potentially everything is addressed and its only paying the loan that remains.
The strata report will include minutes of meeting which will have the resolution(s) where the loan was entered into. That will include the amount and term of the loan. Hopefully there is also committee meeting minutes where they discuss other ongoing matters around the scheme.
Hello Lisa
I found your blogs very knowledgeable, thanks for that. I am in precontract stage for buying a unit. I am interested in ordering PPSR, so my questions are-
1) If I require body corporate searches for last 10 to 20 years, just to be thorough of what I am buying.As sometimes these old records show vital info. Will you be still accommodate my request, when I order PPSR.
2)I would also like to know about issues during general and committee meetings as per above mentioned time, refined with highlighted issues, which can affect my buying decision.
3)Any contact details of yours where I can directly get in touch to verbally present my other requirements.
Thanks
Hi Harry
We don’t have capacity at the moment to do such a thorough search. It is possible but not within the $275 price we charge, and as noted, we won’t have time for at least another couple of weeks. The market is hot and we are experiencing heavy volumes.
Google Purchaser Strata Inspections. They are another search agency who have agents in the area. They have a report where you can get reviews of all meetings since the building was registered. I’m not sure of their pricing but contact them for more information.
Hello Lisa
OMG I was not aware of the complexity of problems facing lot owners. My problem relates to some significant cracking in my unit which involves walls and ceilings. The cracking is attributable to original structural design fault in the building and affects only 2 lots. The BC has agreed to pay for ceiling repairs but repair the wall cracks, the reason they say is that the wall cracks are the lot owners responsibility, however I advised them in writing that I disagreed because the cause of the cracking of walls is the same source as the ceiling cracking ie ‘structural design fault’ . So I do not know where to take this matter next. Who can I get unbiased advice from?
Hi Kristine
Talk to the Office Commissioner Body Corporate’s. They will be able to offer information and can help you with the dispute resolution process if required.
Hi Lisa
I have learnt (after 21 years of ownership and after the BC decided to do a survey) there is common property strip between my townhouse boundary and the complex boundary, which is a 3m wide garden bed between my boundary and the complex boundary. The bottom of the strip is closed off with to the complex boundary, and the top has been closed off by a gate from my townhouse across to the complex boundary for over 20years, including the previous owner. Effectively this has been giving me exclusive access and enjoyment of the garden bed, which I have maintained assuming it was part of my property. Neither I nor the previous owner have made any changes to fencing in that time, and the shed has also been there for all that time. The BC are now saying they will erect a boundary fence between my lot and the common property, and I need to remove a garden shed that encroaches the common property. While I understand all this logically, the common property is a garden bed, and with no through access to anywhere, effectively precludes other owners from any real access anyway, and feels like the BC are exercising their muscle just because they can, and will have a massive impact on my tenants enjoyment. What are my options in this situation?
Thanks for any advice, and all the guidance you give here
cheers, James
Hi James
I agree with you that the doesn’t seem a whole lot of rhyme or reason that the body corporate would want to fence off the area.
What you want to do here is get the area allocated to your lot as exclusive use, since it doesn’t seem to have any other benefit. This can be done by resolution without dissent at general meeting and you will need to pay the cost of the registration of the new CMS.
Discuss this with your committee and find out why they’re taking the action they have. There may be good reasons. Or, as you say, they might just want to exercise power. The reason for the discussion is that you must try and self-resolved the matter before you take further action.
You can submit the motion to general meeting at any time, though the timing of motions being submitted for the AGM might work against you acting timely. This would also be an attempt at self-resolution.
Once you’ve tried something, or if they start pressuring you straight away, contact Office Commissioner Body Corporate and consider seeking and injunction the matter be delayed until you motion to be granted exclusive use can be voted on.
If the committee vote against your motion, which they inevitable will if you get an injunction, you can seek a different adjudicators order that the objection is unreasonable and the matter should be deemed passed. Please be aware, this is legal action and you’d need to make your case here. Equally though, they will need to make theirs.
Talk to them. That’s the best place to start. Negotiating a solution will be easier than all of that. The might be happy for your to buy the area and it will increase the value of the lot.
Thanks Lisa for the comprehensive overview, very helpful! kind regards, James
I have been a our manager/ caretaker for over five years and residents and agents have been very happy with me. But now we have a new committee and two members and the Chairman want me gone. My agreement expired a couple of years ago. An owner wants to put up a motion at the AGM that I stay on at a reduced salary. Would people share templates of their own Caretakers Agreements with me in order that my owner friend can submit a detailed motion.
Hi Humphrey
Thanks for commenting. I don’t have a template I’m sorry. Usually these documents are drafted by Solicitors.