Lot 64 Strata Plan (BMC ) 21/3 King Street Newcastle NSW /3 King Street Newcastle NSW 2300
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1 Lot 64 Strata Plan (BMC ) 21/3 King Street Newcastle NSW
2 Strata Title Records Inspection Thank you for choosing Metropolitan Strata Reports. The information contained in this report is factual and not based on opinion. Whilst we are not qualified to speculate or comment on any building works, compliance, financial or legal matters, we can make appropriate referrals to third-party specialists on request, should the need arise. Please feel free to contact us if you have any questions or would like clarification about any aspects of this report. Inspection Details Report ordered by Inspection Date Managing Agent Address of Managing Agent Phone number Name of Strata Manager Larry House Lawyer 1/10/14 Dynamic Property Services Level 5, 162 Goulburn Street Sydney Sarah Smith Summary of the inspection Are there any complaints about neighbours? Have timber floors been approved? Are the owners diligent in maintaining the building? Are there recent/current defects? Is the building insured properly? Are there any extra payments owing or due? Are there any complaints about pets? Some Yes Yes Yes Yes No No
3 1 Property Details Current Owner Address Samantha Jane Valentine and Daniel Peter Weston 127 Bruce Street Castle Hill NSW 2300 Number of lots in the Strata Plan 102 Number of units 102 Unit Entitlement 43 Aggregate Unit of Entitlement 10,000 Original Owner if known Mirvac Newcastle Pty Limited Original Builder Mirvac Constructions Pty Limited 2 Compliance Requirements Annual Fire Safety Submitted to Council and the Fire Brigade 25/11/13 Workplace Health and Safety Done 1/9/14 refer annexure page Sinking Fund Plan Done 30/11/10 annexure page 31 Account Audit The accounts are audited as per the Act Taxation The scheme is registered for GST 3 Insurance Insurer BAC Insurance Brokers Pty Ltd Policy No NNC25908 Due Date 23/8/15 Sum Insured $186, Evidence sighted Strata Roll enclosed Last Insurance Valuation date 31/5/13
4 4 Finance a. Levy Trends Standard Levies must be set each year at the Annual General Meeting. They are recorded as a total, and are based on the budget that has been accepted by the owners corporation. Paid quarterly effective from: 1/1/14 1/1/13 Admin Fund $460,000 + GST $346,583 + GST Sinking Fund $145,000 + GST $215,532 + GST b. Special Levies Nil c. Levies for subject lot Levies for each lot are calculated as follows: total levy sum divided by aggregate units of entitlement multiplied by units of entitlement Quarterly effective from: 1/7/14 Administrative Fund $ Sinking Fund $88.06 Arrears Nil d. Fund Balances Administrative Fund $126, Sinking Fund $572, Total $699, e. Expenditure Period ending Admin Sinking Year to date $528, $1, /12/13 $882, $29,329.01
5 5 Minutes Last Annual General Meeting : 3/4/14 Last minutes in book : 15/8/14 BMC Meeting Scheduled meetings : 15/9/14 Schedule 3 Executive Committee Meeting (page 71) The prescribed books are kept : Hard copy 6 Current Executive Committee (refer annexure page 36) Name Ref Name Ref Michael Johns Chairman Joanne Thomas Secretary David Jinks Treasurer Guy Robinson BMC Simon Glover BMC Cathy Simpson BMC (sub) Andrew Hedges BMC (sub) Aaron Fisyk BMC (sub) Brady Haskell BMC (sub) 7 Notable Matters contained in the following documents: Date Details/annexure pages 11/8/14 Building Report from the BMC Page /7/14 Defect Inspection Report Update Page 32 15/8/14 Building Management Committee meeting minutes Page 37 6/6/14 Building Management Committee meeting minutes Page 43 4/4/14 Building Management Committee meeting minutes 47 14/4/14 Executive Committee Meeting minutes 66 3/4/14 Annual General Meeting minutes 72 30/4/13 Annual General Meeting minutes 85 8 Conclusions In relation to defects, these are well documented and monitored in the minutes of meetings. We sighted correspondence relating to possible litigation. Refer related documents here in. We sighted a few letters to residents relating to by-law breaches, which includes parking on common property, noise, and unauthorized lot works. Refer related documents here in. We saw evidence that timber floors have been approved conditional to an acoustic report; and evidence that a bamboo floor has been denied. Refer related documents here in.
6 9 Owners Corporations obligations to comply with legislation a) Sinking Fund Plan Owners corporations are not under obligation to obtain a professional sinking fund plan nor are they under obligation to adhere to such plan that they have obtained. However, they must ensure that sufficient funds are raised each year (at the Annual General Meeting) to fund future capital or remedial projects. Owners Corporations who choose not to obtain a sinking fund plan leave themselves open to possible litigation if it becomes necessary to raise a special levy down the track. We therefore strongly recommend that a sinking fund plan is obtained and tabled each year at the Annual General Meeting and subsequently updated regularly to ensure that it makes the necessary provisions for what it s intended to do avoid raising a special levy. b) Annual Fire Safety Statement Environmental Planning and Assessment Regulations require most residential apartment buildings to lodge an Annual Fire Safety Statement known as a Form 15A.The statement must be completed by an appropriately qualified person and must certify essential fire safety measures have received regular maintenance and function in the way they were designed. It does not imply the whole building complies with current standards. The statement must be submitted, annually, to the local Council, Fire Brigade and a copy must be displayed at the building. c) Workplace Health and Safety (WH&S) The common property of many residential buildings may be included under the definition of workplace. This means the Owners Corporation, its executive and strata managers, are obliged to ensure the property complies with the safe workplace requirements of the legislation. Compliance with the legislation is compulsory. Any purchaser needs to be aware the safety of the common property requires the ongoing attention of every Owners Corporation. It may be advisable to make own enquiries with Local Council, Sydney Water, Work cover and other relevant bodies ascertain details of any outstanding Notices or Orders against the Owners Corporation. Under current Environmental Planning and Assessment Act 1979 legislation and Regulations 2000, relevant buildings are required to be inspected by fire control contractors annually in accordance with fire safety requirements and any defects must be rectified prior to their issuing of an Annual Fire Safety Statement (formerly Form 15A). This Certificate must then be submitted to the Local Council who administers fire safety on behalf of the State Government. d) Insurance The Strata Schemes Management Act 1996 requires a minimum Public Liability cover of $10,000,000 per claim and a building valuation must be obtained at least once every 5 years. Under Section 82(6) of the Act and Regulation 12 of the Strata Schemes Management Regulation, 1997, the liability of an insurer under the policy is not to be less than an amount calculated as per building valuation. Legislation was amended effective to provide that NSW Employers, which includes Strata Schemes, employing workers with wages $7,500 or less be no longer required to take out individual Workers Compensation Insurance. Workers Compensation cover in this regard is included in the Building Insurance Policy. Purchasers are reminded that they require independent personal contents insurance to cover such items as carpet, light fittings, painting, wallpaper, blinds, curtains and Public Liability Insurance in respect of their own lot Owners who lease their units should seek independent advice from their rental agent/insurance company in the above regard.
7 10 Terms and Limitations of this report/the inspection a) This report is provided exclusively for the use of the person to whom it is addressed or, to the person who has ordered the report. No other person or corporation has any authority to make use of any or all of this report. This report supersedes any other report, verbal or written, given in respect of the property. All the scans that were taken during the inspection are included and where relevant, we have referenced page numbers within the report for ease of reading. We strongly recommend that all parties to the purchase read all pages thoroughly prior to exchange and not proceed with the sale on the strength of any verbal information about the report or the inspection from anyone. b) Access to files: Information compiled with records as provided during inspection. This report has been compiled from information noted during an inspection of the book and records of the Owners Corporation. All reasonable care has been exercised by us whilst compiling this Report, however we make no warranty of representation as to the accuracy of the information provided to us by the managing agent as noted on page 1 of this report. We will not be responsible for any loss or damage due to any cause whatsoever, including negligence whether in connection with information supplied by the Managing Agent and/or Officers of the Owners Corporation or otherwise. c) Strata Managers are often not available for comment or to answer questions. Management companies represent the Owners Corporations via a managing agency agreement. For this reason, many companies adopt a policy that specifically prohibits managers from discussing records with non-owners. Whilst we endeavour to request information/files, our request is often denied. As a result, a further audit of specific concerns may be necessary (refer Recommendations at the end of this report). We cannot guarantee that what is provided at the time of the inspection is all that the agent has in their possession. In particular, legal documentation and notes taken by the manager may be deemed private documents and withheld. d) Missing Files/Documents: For various reasons, Strata Managers and Building Managers keep files or work at their desk or other locations around the office. Sometimes, these files are not made available for the strata inspection or even overlooked by the staff member who is in charge of gathering all the records for an inspection. In some cases, documents pertaining to litigation are not provided for inspection. We note that all owners in a strata scheme are entitled to discuss and obtain all documents that relate to the matters of the Owners Corporation. It may be necessary to forward a request to the vendor to obtain further information from the (strata) Managing Agent on matters of interest or concern. e) Pest and Building Inspection: As we don t inspect the actual building when carrying out a Strata Inspection, this report does not address those matters that are addressed in a Building and Pest Inspection. We recommend that you engage a specialist to inspect and provide a report prior to the purchase of any property. We are affiliated with local Building & Pest Inspectors and can refer on request.
8 11 Tips for new owners a) Once settlement has occurred, the (strata) Managing Agent will receive advice from the purchaser s solicitor/conveyancer that settlement has occurred. The Managing Agent is under legal obligation to update the records of the Owners Corporation to reflect the change of ownership, and the new owner is sent a welcome letter. The Managing Agent is not under obligation to discuss or provide any information prior to settlement until the purchaser formally becomes an owner. b) Requesting minutes of meetings that have occurred or scheduled: We recommend that new owners make an appointment to meet their Strata Manager for an update on things that occurred between the date of this report and the period after settlement date. Major decisions may have been made or scheduled prior to, or around the time of a settlement. We strongly recommend that new owners ensure that the Managing Agent has their correct contact details so that all notices of meetings and important letters can be mailed out. It is not uncommon for contact details to be out of date or not noted correctly. It is also a good time to request a copy of documentation relating to any areas of concern or interest. c) The Executive Committee: We recommend that new owners request a copy of the Executive Committee and their contact details, as all maintenance decisions are made by the committee in accordance with legislation. There is often one owner who is chosen to liaise and instruct the Strata Manager of all deliberated decisions of the committee. The Executive Committee is voted in at each Annual General Meeting (AGM), which all owners are advised to attend. Regardless of the size of the Owners Corporation, there is a maximum of nine places on any Executive Committee. We recommend that new owners attend the Annual General Meeting when it comes around to acquaint themselves with their fellow owners and to have a say in the important decisions that are listed for discussion and resolution at the AGM. d) Many Managing Agents charge the Owners Corporation for excessive correspondence and therefore the Annual General Meeting is often scheduled in collaboration with the Executive Committee and not all owners. This means that the scheduled time of the AGM may not suit all owners. When this occurs, legislation makes provisions for owners to vote on all motions on the agenda via a voting form known as a proxy. We recommend that new owners wishing to join the committee let the current committee know as soon as possible and request that they are consulted prior to setting a date for the AGM. Some of the above information can be found in the Strata Living Booklet that is available to download for free from the Office of Fair Trading. This booklet outlines all owners obligations and responsibilities.
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