"Are you thinking about buying a strata title unit or townhouse, either as an investment or as your next home?  If so, you would be wise to learn as much as you can about how strata schemes operate and this site is a great place to start.  Also, listed below is a quick check list for prospective buyers to help them avoid some of the pitfalls and traps along with a few links to other useful information."

Buying a property that's strata titled is very different to purchasing one that isn't, especially for those intending to live in it.  In many cases, those with no previous experience in the "Strata Lifestyle" are not fully aware of the differences between strata living and residing in a normal house. As the NSW Dept of Fair Trading's excellent publication " Buying into a strata scheme?" states:

"Strata schemes are in effect small communities where the activities and attitudes of residents can have a significant impact on the satisfaction and enjoyment of others.  It is important for people to be aware of their responsibilities and obligations when owning a strata unit." 

The Strata Search
Before purchasing a strata title unit, it's wise to arrange an inspection of the books and records of the Owners Corporation by a suitably qualified strata searcher.  This is called a Strata Search.  There are many things that aren't apparent from a visible inspection of the building and a Strata Search can uncover any 'issues' prior to the purchase.  There are also a number of factors which can impact on you once you become the owner and it's better to be informed about these BEFORE purchasing so an informed decision can then be made.

Some important questions to ask

• Is the building adequately insured?
• Is there a recent building valuation to support amount of insurance?
• Does the strata scheme have an adequate sinking fund, taking into account the age of the building, the current state of repair and the type of construction?
• Can I afford the quarterly levies?
• Are there any special levies planned?
• Are there any outstanding building works, unpaid invoices etc that could result in a special levy?
• Is the annual sinking fund allocation adequate?
• What are the current balances in the Administrative and Sinking Fund account?
• Are there any current or proposed litigation matters involving the Owners Corporation?
• Are there any limitations or restrictions on the use of common property which may affect me?
• Are there any outstanding public liability claims involving the Owners Corporation?
• Are animals permitted?
• Have any alterations to the unit been approved by the Owners Corporation?
  for example: the installation of an air conditioning unit