Does the lawyer you are intending to engage to handle your conveyance have Body Corporate Law skills? Engage a law firm with Body Corporate law experience if you really want to be protected.
Key information, to determine what the go forward sinking fund body corporate levies may be, when you are considering purchasing a property in a community title development is:
- The Sinking Fund Forecast
- Minutes of Annual General Meetings and Extraordinary General Meetings of the Body Corporate for the last few years
- Minutes of Body Committee meetings for at least the last year
In my opinion it is best to get hold of this information before you indicate what you are prepared to pay for the property. Why? If significant sinking fund body corporate levies are coming this is going to have a downward effect on market value.
Once you have these documents what do you need to look at?
- How up to date is the Sinking Fund Forecast?
- Have major expenditure items in the Sinking Fund Forecast actually be carried out when scheduled by the forecast?
- Has there been any additional recent major sink fund expenditure that was not forecast by the Sinking Fund Forecast?
- Do the minutes hint at any other major work required on the building that is not allowed for in the Sinking Fund forecast?
- Once these questions are answered you can start to make some estimates of what the sinking fund levies for the next few years may be.
This is an example of how practical our Property, Conveyancing and Body Corporate Lawyers are. We have lawyers with Body Corporate Law experience in both our Brisbane and Gold Coast offices.
More information: www.corneyandlind.com.au
{ 2 comments… read them below or add one }
We have signed a contract of sale on a property and it has now gone unconditional – however a council search has found that the final plumbing and building inspection was never completed.
Whose legal responsibility is it to have this final inspection completed before settlement? Should this not be the current owners responsibility? Can this void our contract if a final inspection is not completed by settlement?
Thank you.
In Queensland, the standard REIQ land purchase contracts contemplate that you will find this out during the “building inspection period” while the contract is still subject to a satisfactory building inspection. In practice however, if the contract only gives you a short time for your physical building inspection, the chances of having search results back from Council in this window of time are very slim. Additionally there is the problem of whether the search results form part of the building inspection report. (For future reference it is best to get our Brisbane and Gold Coast Conveyancing Lawyers to look at the contract before you sign it.)
Again in Queensland, under the standard REIQ Contract it is likely that you have no right to insist that the seller have the final building and plumbing inspections completed before settlement or to terminate the contract on this basis. There are limited exceptions to this (for example representations were made to you about this before you signed the contract or allowed the contract to go unconditional as to building and pest; and if there is an outstanding notice issued by Council that pre-dated the contract).
Really this is one that that careful legal advice needs to be taken on before you act. If we can assist please let me know.
Contact: Brisbane & Gold Coast Conveyancing Lawyers
More information: http://www.corneyandlind.com.au