The chance of you either selling or buying a strata titled property sits in the area of high as Western Australia has over 325,000 strata properties (over approximately 73,000 strata schemes). These include multi-unit dwellings (2+), high rise apartments, townhouses, and villas. Vacant land on strata is survey strata, which may also include improvements.
A precontractual disclosure form details what needs to be disclosed (or if the buyer, what do I need to know). This information is required to be provided PRIOR to the buyer signing a contract for sale.
1. Seller's Information:
Begin by furnishing details about the seller, ensuring that buyers have access to the necessary contact information.
2. Scheme Details:
Provide a thorough overview of the strata scheme, including the strata manager's details, registration status, scheme type, and tenure type.
3. Scheme Documents:
Provide copies of key scheme documents, including the scheme plan, by-laws, and the schedule of unit entitlements. These documents serve as the foundation for understanding the strata lot's boundaries, rules, and ownership shares.
4. Minutes of Meetings:
Include minutes from the most recent Annual General Meeting (AGM) and any subsequent Extraordinary General Meeting (EGM). These minutes offer insights into the strata committee's decisions, ongoing issues, and proposed changes.
5. Statement of Accounts:
Disclose the latest statement of accounts prepared by the strata company. This document outlines the financial standing of the strata scheme, including details on the reserve fund, administrative fund, and any outstanding fees.
6. Termination Proposal (if applicable):
If a termination proposal is on the table, provide details to buyers. Transparency regarding potential changes in the strata scheme is crucial for informed decision-making.
7. Voting Right Restrictions (if applicable):
Clearly outline any restrictions on voting rights within the strata scheme. Buyers should be aware of any limitations that may impact their participation in strata decisions.
8. Exclusive Use By-laws:
Disclose any exclusive use by-laws pertaining to the strata lot. This information helps buyers understand any specific rights or restrictions associated with their property.
9. Strata Levy Contributions:
Provide details on the strata levy contributions applicable to the specific lot. This includes information on current contributions and any upcoming changes.
10. Debts Owed (if applicable):
Clearly communicate any outstanding strata levy contributions or other debts associated with the strata lot.
Conclusion:
In adhering to the mandatory precontractual disclosure requirements outlined in the Precontractual Disclosure Statement, sellers contribute to a transparent and informed real estate transaction. These essential elements empower buyers to make well-informed decisions, fostering a smoother transition in the sale and purchase of strata titled lots in Western Australia.