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noise is often the biggest issue when living in a unit. the closeness of your neighbours makes it advisable to check the layout of adjoining units to determine noise levels. for example, it will be noisy if the bedroom of your unit is directly below or above someone else's kitchen or living room.
if you are buying a strata title unit, you should be careful to check the amounts of strata levies and fees associated with this type of title (see section strata title below).
ask yourself the following questions:
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is the car-space registered on the title and is it a lock-up garage or a carport? (do not assume that unit numbers correspond to car spaces or garage numbers)
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is there a car space for your visitors?
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is the unit near reliable transport?
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does it have an internal laundry?
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does it have it's own balcony?
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does the block have adequate security?
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what are the building’s regulations? (this depends on the title under which the unit is owned)
information to consider before purchasing:
company title
with company title unit owners are actually shareholders in a private company. buying a certain number of shares entitles the shareholder to exclusive possession of a particular unit and a car space.
the shareholders in the company vote to decide company rules governing occupation, including rights to lease, sell or transfer shareholdings.
warning! you normally have to have the company's approval to alter the occupancy of a company title unit and lending institutions are more reluctant to lend for this sort of property.
strata title
strata title is the most common title in unit ownership. briefly, strata acts in each state make possible the subdivision of the airspace above the surface of the land, a certificate of title to part or parts of a building. this enables the purchaser to buy the actual space enclosed by the unit and then deal with the unit as a normal owner of property.
the individual owners in a block of strata title units must form an owners’ corporation which controls the general administration and any funding of common property. an executive committee of the owners’ corporation is elected annually from the current unit owners. the owners’ corporation has the duty to establish two funds - an administrative and a sinking fund - made up of the owners’ contributions.
as a unit owner you must contribute towards the costs associated with common areas e.g. lighting of entrances and hallways, gardening, maintenance, etc. your costs will increase considerably if your units house facilities such as lifts, swimming pools and saunas.
a prospective buyer should read the standard by-laws and any alterations and additions that may have been made by the owners’ corporation (i.e. keeping pets).
getting information from the owners’ corporation records
it is important that you inspect the books and records of the owners’ corporation before buying. sometimes your solicitor will arrange this for you. there are companies that specialise in inspecting the books and they know what to look for.
if you are a buyer you can ask the owner to give you written permission to write to the secretary of the owners’ corporation and ask the secretary to let you look at the records. the owners’ corporation must let you look at all the records and should make arrangements with you to do this for a fee.
the inspection will show the history of maintenance on the building and provide an insight into complaints lodged by other owners. more importantly it may show plans for future spending.
you can also gain access to the owners’ corporation records in nsw by using a section 109 certificate. other states have different names for these certificates.
normally these certificates will give information about the strata scheme including:
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the names and addresses of the executive members and the managing agent (if there is one)
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levies paid by the owners
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any outstanding levies
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the address where you can view the records and financial statements
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any special by-laws made by the owners’ corporation in the past 2 years.
if a levy is outstanding before the certificate is given and it is not shown on the certificate, you are not responsible for the payment. make sure you keep your documentation.
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