{"id":22406,"date":"2018-09-13T01:00:41","date_gmt":"2018-09-12T15:00:41","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=22406"},"modified":"2018-09-13T01:00:41","modified_gmt":"2018-09-12T15:00:41","slug":"what-to-look-for-when-doing-a-body-corporate-search-miriam-sandkuhler","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/what-to-look-for-when-doing-a-body-corporate-search-miriam-sandkuhler\/","title":{"rendered":"What to look for when doing a body corporate search \u2013 Miriam Sandkuhler"},"content":{"rendered":"

Miriam Sandkuhler<\/strong> advances our discussion on Strata Title property and some of the areas buyers need to be aware of and how easily it is to come unstuck.\u00a0 She has some good advice on what to do and what not to do.<\/p>\n

Transcript:<\/strong><\/p>\n

Kevin:\u00a0<\/strong>When you\u2019re buying an apartment or a unit, one of the titles that you\u2019ll come up against or you\u2019ll hear about is Strata. So, we\u2019re going to talk about what Strata is all about, and some of the things that you should be aware of if you\u2019re actually buying into that type of title. Joining me to talk about that, Miriam Sandkuhler from Property Mavens. Good day Miriam.<\/p>\n

Miriam:\u00a0<\/strong>Good morning Kevin.<\/p>\n

Kevin:\u00a0<\/strong>Let\u2019s talk about some of the, traps is not necessarily the right word, but things that people should be aware of if they\u2019re going to enter into a Strata title.<\/p>\n

Miriam:\u00a0<\/strong>That\u2019s correct. So what most people don\u2019t understand is when you\u2019re buying Strata title you\u2019re actually buying a share of a larger title and there\u2019s often common property as well. So it\u2019s really one block that\u2019s seems leading to multiple titles and then there\u2019s common property which, everybody ultimately responsible for and they have a share of the ownership also.<\/p>\n

Kevin:\u00a0<\/strong>So therein probably lies the first problem and that is that there are a number of people who are gonna be jointly handling portion of what you think might be yours, therefore you\u2019ve got to get along with \u2019em. You got to agree with them, don\u2019t you?<\/p>\n

Miriam:\u00a0<\/strong>Absolutely, but before that you need to make sure that you\u2019re getting the contract checked absolutely thoroughly and you\u2019ve got a really clear understanding of what you\u2019re buying into, \u2019cause when it goes wrong it goes very wrong and there are plenty of owners corporations and body corporations where there is absolute conflict between owners and it\u2019s a nightmare.<\/p>\n

Kevin:\u00a0<\/strong>Okay, what else should we be aware of?<\/p>\n

Miriam:\u00a0<\/strong>So if you\u2019re buying new, understand that buying, well off the plan, is very risky, because you\u2019re basically buying a concept. So while you might save stamp duty buying properly off the plan, you\u2019re buying a concept and once it\u2019s built you\u2019re committed to purchasing it in spite of the building materials used and we are seeing some situations particularly in Melbourne now where there are issues with a cladding that\u2019s highly flammable on a lot the newer apartment buildings that have been built and as a consequence of that, people are gonna struggle to sell their property easily. There\u2019s now massive legal cases that play in terms of who\u2019s responsible, you know the council signed it off, but was it the builder or the developer. Prices and values of properties can be effected. So you really must proceed with caution when you\u2019re buying certainly newer off the plan properties from that perspective.<\/p>\n

Kevin:\u00a0<\/strong>Yeah you talked earlier about taking legal advice on any contracts, but you should also be doing all the proper searches, the body corporate searches and so on. There are two different types of searches that you can make with those and some of them certainly aren\u2019t detailed enough, they don\u2019t go back far enough. I\u2019ve always counselled people to make sure that they go back as far as they can and familiarise themselves with the past minutes Miriam.<\/p>\n

Miriam:\u00a0<\/strong>That\u2019s exactly right. So I suggest at a minimum they want to request one to two years worth of meeting minutes.<\/p>\n

Kevin:\u00a0<\/strong>Yeah, absolute minimum really.<\/p>\n

Miriam:\u00a0<\/strong>Yeah annual general meeting minutes.<\/p>\n

Kevin:\u00a0<\/strong>Yeah.<\/p>\n

Miriam:\u00a0<\/strong>Because then I can go back and track down the history. What are the larger issues within the property and the development that need to be dealt with. Are there any special levees that are gonna be struck? Is there a capital work fund? Is there a pot of money automatically set aside out of all the owner\u2019s corporation contributions every year that gets built up to deal with those expenses when they come, \u2019cause when they come they\u2019re huge and you legally have to pay your share of them whether you\u2019ve got the funding for it or not.<\/p>\n

Kevin:\u00a0<\/strong>An example of some of the things that can arise, buildings that have a flat roof as an example can tend to leak, and if there\u2019s some remedial work that\u2019s been done and then we go through a dry spell, which in some cases can last for years, no one really knows whether or not it\u2019s been repaired properly and there could be a massive call in future. So you\u2019ve got to go back quite a way, I think, to find out if there\u2019s been any remedial work done on the block.<\/p>\n

Miriam:\u00a0<\/strong>That\u2019s exactly right and it can be anything. It can be concrete cancer, I mean it usually comes down to poor workmanship or it comes down to the wrong, or poor materials used and that\u2019s why again, when you\u2019re buying a property, even if it is a relatively new townhouse, apartment, you still want to get a defects building report done. Certainly with an older property you want to get a defects building report done as well, or a building and pest report because you need to understand what the issues are, not just with the property that you\u2019re buying, but on a bigger scale with the actual development itself.<\/p>\n

Kevin:\u00a0<\/strong>I think it\u2019s also a good exercise when you are looking at purchasing something like this to ask the solicitor or the conveyancer you\u2019re using, have they got experience with this type of title. Do they know what sort of searches should be done and undertaken Miriam?<\/p>\n

Miriam:\u00a0<\/strong>That\u2019s exactly right, because there are some solicitors conveyancers that specialise in dealing with off the plan contracts and it is an area of expertise. There are lots of things that can often be hidden within an off the plan contract. So you don\u2019t want your average conveyancer dealing with that. You want someone who specialises in that to go through it with a fine tooth comb.<\/p>\n

Kevin:\u00a0<\/strong>Absolutely.<\/p>\n

Miriam:\u00a0<\/strong>Because it could be the difference between making or losing an enormous amount of money.<\/p>\n

Kevin:\u00a0<\/strong>Yeah, because not all conveyancers are the same Miriam, are they?<\/p>\n

Miriam:\u00a0<\/strong>Correct. Neither is anyone in any profession. You know you have to assume in any profession that there are people who are experts and there are people that aren\u2019t.<\/p>\n

Kevin:\u00a0<\/strong>Well it was good talking to you Miriam Sandkuhler. Miriam is the CEO and buyers agent at Property Mavens. Thanks for your time Miriam.<\/p>\n

Miriam:\u00a0<\/strong>Your very welcome Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

Miriam Sandkuhler advances our discussion on Strata Title property and some of the areas buyers need to be aware of and how easily it is to come unstuck.\u00a0 She has some good advice on what to do and what not to do. 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