Buying a condo, bareland strata, townhouse or duplex? Well then you should know that the process is significantly more complex than dealing with a single family home and presents buyers, sellers, and their REALTORS® with additional risks! The best way to avoid problems sneaking up on you and biting you in the behind is for YOU to read and understand the strata documents and the implications, costs, and risks they alert you to. Knowing what to look for is key!
Just like needing a lawyer to review contracts of purchase and sale, manage the disbursements of funds, and the transfer of title in a rigorous and timely fashion your REALTOR® is required to review all the pertinent strata documents as part of our services to buyers and sellers. In all honesty most REALTORS® are not expert in this area.
Even though I have taken supplemental specialized training in the purchase and sale of strata properties I don't consider myself an expert either! So, I recommend that you have your lawyer review and provide you with a summary of these sometimes very complex documents every time! There are a number of companies that specialize in the review of strata documents and I typically share the cost of their services with my clients. The more you know the better decisions you will make!
The following is a list of documents we recommend reviewing with every transaction:
- Current Form B – Within 30 days;
- Current Financial Statement – Within 60 days;
- Latest Depreciation Report (Should come with the Form B);
- Insurance Certificate;
- Rental Disclosure Statement (should come with the Form B);
- Registered Bylaws;
- Rules (should come with the Form B);
- Strata Plan;
- Form V: Schedule of Unit Entitlement;
- AGM/SGM Minutes – Two years;
- AGM/SGM Notices – Two years;
- Council Minutes – Two years; and,
- Any Engineers Reports.
I hope you found this helpful and if you have any questions please reach out. Happy to help!