Buying a strata property is different to purchasing a place that doesn’t involve communal living. There are extra considerations to think about such as the payment of levies and the by-laws that govern each scheme.
To help guide your decision before you purchase a strata-titled lot, you can request what’s known as a Section 109 certificate from the Owners Corporation. The name of the form comes from the relevant section of the Strata Schemes Management Act 1996.
This useful document contains key information about the management of the building and the financial obligations of the members.
A Section 109 certificate will include:
- The names and addresses of the executive committee members and the managing agent
- The levies to be paid by the owners
- Any outstanding levies
- The address of where the records and financial statements can be viewed
- Details of recently enacted by-laws
Importantly for prospective buyers, if there’s a levy outstanding on the property before the certificate is issued and this amount isn’t shown on the document, then the purchaser is not responsible for the payment.
An owner, a mortgagee or covenant chargee of a lot or a person who’s authorised by the owner, the mortgagee or the covenant charge may request a copy of the certificate. This application must be made in writing, together with the prescribed fee.
According to the legislation, the treasurer must respond within 14 days of the request being made otherwise the Owners Corporation may face financial penalties. The common seal should also be used to verify the certificate’s authenticity.
If you require any additional information regarding a Section 109 certificate, contact your Strata Manager at Netstrata.