WHEN purchasing a unit within a body corporate, many buyers fail to conduct the same level of due diligence as they would when buying a house – this can be a costly oversight.
Whittles Cleveland senior strata manager Matthew Porch advises that prospective buyers dig deeper into the body corporate structure before committing to a purchase.
Key recommendations include reviewing body corporate records to assess financial stability, understanding the maintenance responsibilities tied to the subdivision format, and evaluating the overall condition of the complex.
The emphasis is placed on the importance of engaging with the strata manager early and staying proactive as a new owner.
“We all do our due diligence when buying a house, however when buying a unit within a body corporate this is often overlooked,” Mr Porch said.
“I recommend buyers carry out a search of the body corporate records either as an individual or engage a search agent to do so. This will give you a good understanding of the financial position, quality of records, issues present and the general function of the body corporate.
“Ask, ‘Is this a building format plan or standard format plan of subdivision?’ This will largely determine your long-term responsibility for maintenance as well as how easily maintenance can be conducted.
Typically a building format plan will see majority of maintenance paid by the body corporate and committee-driven, while a standard format plan will be individual owner paid and driven.”
Mr Porch shared some further advice and suggested that buyers consider the whole complex rather than just purchasing unit.
A rundown complex may be a sign of inadequate funds, waning interest or asStrata manager that does not pro-actively foster engagement.
A rundown complex may also be an opportunity for you to be involved to maintain the property and manufacture equity.
“Due diligence is not the end of it,” Mr Porch said.
“I always recommend new owners take a few critical first steps prior to settlement or soon thereafter.
To ensure a smooth transition into body corporate ownership, Mr Porch recommends taking a few critical steps before settlement and as soon as you’re the new owner.
These steps will help you stay informed, organised, and engaged in your body corporate community:
Review the BCCM Section 206 Disclosure Statement which forms part of the sales contact before settlement. This has the due dates and figures for your body corporate levies. A levy may be due the day after settlement and your obligations remain to pay these on time despite not being received.
Request to be copied in on the BCCM Form 8 from your conveyancer when issued to the strata manager.
This allows you to check the Form 8 issued has your preferred contact details, as well as make contact early with the strata manager to access the body corporate portal login.
Last but not least, have a conversation with your new strata manager. An experienced manager will make time available and set expectations for the year ahead as a new owner.
