I always said that if I ended up being rich, I'd buy a house for my mum. She's always rented and been at the mercy of the whims of landlords and real estate agents who ask her to leave at any time. I've made some smart investments over the last 10 years, and I am ready to be able to buy her a nice modest house so that she can live in her own home. This blog is all about the search for a house for my mum and has a lot of tips on buying real estate for family members.
Strata development is a type of land ownership where owners share common property such as a staircase, parking lot, access roads, parks or swimming pools. Units in an apartment often have a strata title. Besides, subdivided land will have a strata title.
People that own lots in a strata development form the owners association. The body is in charge of managing the shared property. The owners association is headed by the owners committee that comprises the chairman, secretary, treasurer and their deputies. The committee manages the strata development on a day to day basis. They ensure that the shared property is in good condition. Besides, they handle disputes among the members arising from the use of the shared property. Some strata developments have a manager who reports to the owners committee. The owners association meets during the annual general meeting. They elect new leadership and change the bylaws if they wish.
So what considerations should you make when buying a property with a strata title? Below are some tips.
Inspection
Other than checking the structural integrity of the property, examine the condition of shared amenities such as the swimming pool, drainage, parks, parking area and staircase. Poorly maintained facilities are an indication of a mismanaged owners association. Besides, you may have to chip in to renovate such amenities.
Bylaws
Your solicitor should help you acquire the association's bylaws. Typically, these bylaws are regarded as confidential information. As such, they are available once you sign the contract of sale. Besides, you may have to pay a small fee to get a copy of the bylaws. Some of your concerns when examining the regulations should include:
Finances
Examine the owners association's finances. For instance, how much does each person contribute toward the maintenance of the shared property? Are payments equal, or are they based on the lot size? If the body has an outstanding loan, will you make repayments? Your solicitor should evaluate the books of accounts to identify signs of financial improprieties.
Remember to conduct a background check on the owners committee. Members must be citizens of good character with outstanding leadership skills.
For more information, contact a strata development company.
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