It’s one of the most common questions we get from buyers, agents and vendors. The short answer is yes. If a property is strata titled, we’d recommend a strata report, whether it’s a duplex or a high-rise.
Here’s why.
It’s still strata title
The owners of a duplex might tell you they don’t hold meetings and arrange their own insurance. That may be how they run things day to day, but legally it’s still a strata scheme with an owners corporation. The same goes for small blocks of three, four or more units.
Small and self managed schemes
Some rules are simpler for a block of two. Many small schemes, often up to around 10 units, are self managed, which means the owners look after the books, records and meetings themselves rather than appointing a strata manager.
That can work well for the owners, but it’s also where buyers can get caught out.
What a strata report can point out
A strata report doesn’t just tell you how a scheme is running. In small and self managed schemes, it often highlights things a buyer hasn’t thought about.
Who does the books?
The vendor may be the one keeping the records and paying the bills. Once they sell, the buyer may not want to take that on, and the owners may need to appoint a strata manager.
What’s missing?
Self managed schemes often don’t have the records or reports a managed scheme would, such as a capital works fund plan or adequate insurance.
What the buyer doesn’t know
We don’t know how much a buyer understands about strata. The report explains how the scheme works and what they’d be responsible for.
The conveyancer will ask anyway
Buyers’ conveyancers are conservative. If they see a property is strata titled, they’ll usually recommend the buyer gets a strata report, however small the scheme.
Is the building part of the lot?
In many duplexes and villas, the building forms part of each lot, which means each owner generally maintains their own building. If that applies, it’s worth understanding what it means. Read our guide: [Building part of the lot: what does it mean on a strata plan?]
Questions? Call us
Not sure if a property needs a strata report? Just ask. We’re happy to talk it through with buyers, vendors and agents.
Call us on (02) 4297 2555.
Download the fact sheet from the Help Centre
