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.
More information: www.corneyandlind.com.au