If you are buying a strata or community title property you are likely about to make one of the largest purchases you have every made, or will ever make, in your life. I implore you to conduct a search of the scheme’s books and records so that you can make a fully informed decision. Just recently, I have had two clients who have learned this lesson the hard way.

If you don’t conduct a strata (or community) search on the books and records how do you know if there are any disputes, defects or deficits in accounts that may come back to haunt you?

For instance, when I do a search I am looking at the meeting notices and meeting minutes to see if there are any references to building defects, legal advice, disputes, waterproofing or structural works that need to be conducted. I am also looking for the capital works fund to see if it has a current or recent capital works fund plan and if the lot owners are voting to raise funds in accordance with that plan. If not, I would be looking at the plan and the money in the capital works fund to judge whether it is going to be sufficient to conduct repairs and maintenance when it falls due. Why? No building escapes the need for maintenance and a well management building will have a schedule of anticipated repairs/renewal works that is set out in hits capital works fund plan and is fully provisioned. If there is not enough money being squirrelled away in the bank, when the time comes for the works, a special levy will be required.

It’s also really important that you read the strata search and if you do not understand something in the search results, you ask. No one knows everything so there is no shame in asking questions. For instance, if you see in the records a mention of defects or required work and you cannot see a scope of work or costings then I would be asking what stage in the remedial process the scheme is up to, how much the repairs are expected to be (based on a quote or a quantity surveyors report) and whether there is enough to fund them without a special levy.

I would also, if I were buying an older unit that looked to have had recent works look to see whether they works had been authorised by way of a by-law (if needed) or a resolution of strata committee (if they are minor renovations). If I could not see an authorisation I would be asking more questions to get to the bottom of it.

This post could be ten times as long and not be long enough to go into everything that will be in the report. The key takeaway is that this process is designed to inform you. Please, please use it.