SIMPLY STRATA REPORTS ABN:
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1 SIMPLY STRATA REPORTS ABN: STRATA INSPECTION REPORT NO. SP84516 REPORT ORDERED BY: DRAKE REAL ESTATE PROPERTY ADDRESS: UNIT 3/ ELANORA ROAD ELANORA HEIGHTS INSPECTION DATE: 9 TH JULY 2015 INSPECTED BY: HEYEM METLEJ Any enquiries relating to the report or its content must be directed to the inspector on simplystratareports@gmail.com - 1 -
2 STRATA SCHEMES INSPECTION REPORT An Inspection of the Owner s Corporation books and records was conducted on: STRATA SCHEME NUMBER: SP84516 LOT NUMBER: 3 PROPERTY ADDRESS: Unit 3, Elanora Road, Elanora Heights, 2101 On the 9 th July 2015 The proprietor shown on the Strata Roll: B. R. GRUNDY M. A. GRUNDY The Mortgagee shown on the Strata Roll: ING BANK (AUSTRALIA) LTD Other Mortgagees shown on the Strata Roll are: None Noted Other entries on the Strata Roll: None Noted STRATA ROLL The following indicates the extent to which the Strata Roll complies with the Strata Schemes Management Act 1996: In Book Form Unit Entitlement Recorded: Names Recorded: By-Laws Included: One Page per Lot: Original Proprietor Recorded: Addresses Recorded: Insurances Recorded: COMPUTER YES YES YES YES NO YES NO - 2 -
3 INITIAL PERIOD The Initial Period begins when the Strata Plan is registered, and ends when one-third of the total unit entitlements have been sold. Is the Scheme in the Initial Period - It appears from the Strata Roll that the initial period has EXPIRED TITLE DEED The Certificate of Title was sighted during inspection a copy is enclosed for your reference Date of Issue: 16/4/2013 Identifier: CP/SP84516 Edition: 2 Prior Title: Not sighted Noted Change of By Laws: AH Number of Lot(s): 12 Lots Number of Unit (s): 12 Units Attention is directed to the Strata Scheme by-laws filed with the strata plan The land above described is limited in stratum in the manner described in DP Attention is directed to the Strata Management Statement filed with SP84516 Unit Entitlements Lot 3 (Unit 3) = 88/1000 SP84516 The strata plan was registered on the 17/2/2011. MANAGING AGENT The details of the managing agent are as follows: Name: Body Corporate Services (Mona Vale Branch) Date of appointment: 27/7/2011 License No: Assigned Manager: Charles Guthrie Address: Suite 1.1/ 9 Waratah Street, Mona Vale Telephone:
4 NOTICES & ORDERS Records are kept of Notices given to the Owners Corporation. Records are kept of Orders served on the Owners Corporation. Particulars of matters discoverable for such notices or orders which adversely affect either the Owners Corporation or the subject lot from the point of view of the purchaser or mortgagee, are: None Noted. MAINTENANCE LEVIES Current Standard Levies for the Lot (s): Lot 3 (Unit 3) Administration Fund: Sinking Fund: Total Levies: $ 1, (Inclusive of GST) $ (Inclusive of GST) $ (Inclusive of GST) To be paid in quarterly instalments commencing 15 th September 2014 Levies for Lot(s) Paid To 14/9/2015: $ CR (Please refer to the Current Owner Ledger enclosed) Furthermore, a S109 Certificate must be obtained prior to settlement to confirm any possible changes to the subject lot. Levies Determination at AGM 16/9/2014: Administration Budget: $63,528 per annum Sinking Fund: $5,859 per annum The levies have been calculated correctly in accordance with the unit entitlement schedule and Approved Budget determined at the last Annual General Meeting. Current Special Levies for the Lot (s): Lot 3 (Unit 3) Administration Fund: Sinking Fund: NIL NIL The records of the owner s corporation disclose: That the following Special Levies are likely to occur in the near future: There is no indication from the minutes that a Special Levy would be required in the near future. However, consideration must be given to the Proposed Major Expenditure and the values of the Administrative and Sinking Funds. Refer to the Income and Expenditure Statement for the year ending 30/6/
5 Refer to the Income and Expenditure Statement for the period 1/7/2015 to 8/7/2015 Details of Any Special Levies raised in the Last 5 years: None Noted That the following increases in the Current Standard Levies are likely to occur in the near future: There is NO indication from the minutes that a further increase on Standard Levies would be required, in the near future. To be discussed at next AGM 2015, no notice available at time of inspection. Administrative Fund FINANCIAL DETAILS The Administrative fund is designed to cover expenses for maintaining the common property, the owner s corporation personal property, insurance premiums and recurrent day to day expenses. The approximate balance of the Administration Fund is: - $2, DR as at 8/7/2015 Sinking Fund The Sinking Fund is intended to cover expenses of a capital nature (eg. painting common property, replacing or repairing common property and renewing or replacing fixtures, which form part of the common property). The approximate balance of the Sinking Fund is: $17, CR as at 8/7/2015 The approximate balance of the Owners Fund is: $15, CR as at 8/7/2015 Values above are obtained from the balance sheet provided. Enclosed is a copy for your reference. Books of Account: Books of Account are kept. Please note that no attempt has been made to ascertain whether any Managing agent has complied with the detailed accounting requirements of the Property, Stock & Business Agents Act. An additional inspection would be necessary to enable us to report on those requirements. Is there Auditors Appointed: Tax File Number: Australian Business Number: Is there any Evidence of an Income Tax Return Lodged in the last 12 Months: Resolved at the last AGM for an auditor to be appointed Note for strata schemes with 100 lots or more this is compulsory YES - 5 -
6 BY-LAWS The following By-Laws have been passed but not registered. (The Strata Schemes Management Act 1996 requires that a change of By- Law must be registered within two years of the resolution being passed): None Noted. The Owner s corporation attitude to the keeping of animals is: As per By-Laws Information (if applicable) relating to the rights of exclusive use and enjoyment of common property will appear, in a supplementary report. Refer to additional report INSURANCE The Strata Schemes Management Act 1996 requires owner s corporation to have: 1. Building Insurance at least to the value of the building as determined by valuation, which must be obtained at least every 5 years. 2. Public Liability cover to a minimum of $10,000, Workers Compensation 4. Voluntary Workers Insurance Note: Owners corporation policies normally cover only risk associated with the common property and not the individual lots. It should be noted this can apply even when damage to property in an individual lot results from fault arising in the common property. DP , SP84516, SP84517 & BMC COMMERCIAL STRATA Building Building sum insured: $10,391,472 Company: CHU Insurance Policy Number: NCS25726 Policy Ends/ Due Date: 9/3/2016 Common Contents: $103,914 Loss of Rent/ Temp Accom: $1,558,721 Premium: $15, Excess: $20,000 Earthquake $500 all other claims Public/ Legal Liability Sum Insured: $ 20, 000,000 Company: As Above Policy No: As Above Due Date: 9/3/2016 Premium: Included in above sum - 6 -
7 Last Insurance Valuation NO Valuation report sighted. Under the Strata Schemes Management Act 1996 S. 85 a valuation of a building for insurance must be obtained at least once every 5 years. A copy of the Insurance Schedule is attached for your convenience. History of Claims NO claims history summary provided by insurer in records sighted at time of inspection. Insurance Claims sighted: 25/7/ $ reimbursed for water damage I note that it may be possible that there have been claims handled directly between the insurer and Claimant and therefore these claims may not be detailed in the history. For a Comprehensive Insurance Claims History, the insurer should be contacted directly. Workers Compensation Sum Insured: Company: Policy Number: Policy Ends/ Due Date: As Per Act CHU Insurance As Above As Above Personal Accident Sum Insured: $ /$2000 Company: CHU Insurance Policy No: As Above Due Date: As Above Other Insurances Fidelity Gaurantee: Sum Insured $100, 000 Office Bearers Liability: $5,000,000 Machinery Breakdown: NOT SELECTED Government Audit Cost: $25,000 Health & Safety Breaches: $100,000 Legal Defence Expenses: $50,000 Lot Owner s Fixtures & Fittings: $250,000 RESIDENTIAL STRATA SP84516 (HELD WITH QBE INSURER, POLICY NO , PREMIUM: $1,056.56, EXPIRES: 9/3/2016) Legal Liability: $20,000,000 Voluntary Workers: $200,000/$2000 Fidelity Guarantee: $100,000 Office Bearers Liability Insurance: $5,000,000 Government Audit Cost: $25,000 Health & Safety Breaches: $100,000 Legal Defence Expenses: $50,000 Please refer to insurance policy tax invoice enclosed
8 MINUTES Minutes of meeting are retained in book form: YES Particulars of building repairs and maintenance problems apparent from the minutes are: The complex appears to be well managed and maintained. However, the Administration Fund is in a deficit position which may result into a Special levy being struck to restore funds in the near future. Please refer to the additional report for full details of repairs and maintenance contained in the minutes. EXECUTIVE COMMITTEE MEMBERS Resolved at the last AGM for the following person(s) be elected to form part of the executive committee: Robert Kerr (2) Belinda Grundy (3) Ian Cook (5) Michael Squires (6) Robyn Baxter (7) David Boveran (9) WARRANTY INSURANCE Warranty Insurance (Home Building Act 1989 (Regulations 1997)): In order to comply with the Act, any building defects affecting the common property &/ or individual lots should be reported to the Insurer within six months of first being noted within the six year warranty period. (Please note that Multi- storey buildings (i.e.: more than 3 storeys) constructed after 31 st December 2003 are exempt from Home Warranty Insurance requirements vide: Home Building Amendment (Insurance Exemption) Regulation Home Warranty Certificate dated 21/8/2009, copy enclosed OCCUPATIONAL HEALTH & SAFETY Occupational Health & Safety Act 2000: This Act places full responsibility for any breaches on the Owners Corporation and its officers. Liability cannot be subjugated to tradespersons, cleaners or other service providers. While any legitimate claim may covered by the plans Public Liability Insurance, fines of up to $850, 000 are not. In addition a penalty of 2-8 -
9 years imprisonment can be given. Defence of a claim is highly restricted and appears to rest on the Owners Corporation showing it took all reasonable steps to ensure a claim would not occur. I further note that substantial changes have been made to the legislation and residential Strata Plans are now not required to have an OH & S Report carried out on the whole building. However, an OH & S Report is required for lifts before registration can be affected with Work Cover. WH&S Reports prepares Common Property Safety Report dated September 2014, part copy enclosed NO Asbestos Report sighted at time of inspection. Termite Inspection As there is no evidence that a recent termite inspection has been carried out, we recommend that the prospective purchasers make their own enquiries. Service and Maintenance Agreements No search has been made of these, or any other agreements that may have been entered into by the Owner s Corporation. Essential Services NO Annual Fire Safety Statement sighted. Under the Environmental Planning & Assessment Act, 1979 Legislation & Regulations, 2000, relevant buildings are required to be inspected by fire control contractors annually in accordance with Fire Safety requirements & any defects must be rectified prior to the issuing of the Annual Fire Safety Statement. This Certificate must then be submitted to the Local Council who administers fire safety on behalf of the State Government. Smoke Alarms - new smoke alarm requirements for existing buildings effective from 1/5/06. In summary, this requires that all lots that contain a bedroom must be protected by a smoke alarm(s) that comply with Australian Standard AS This regulation relates to buildings that currently do not have to submit an Annual Fire Certificate to the local Government Authority Strata Living What you should know about residential, commercial and other strata schemes, please refer to the copy of Strata Living on the Office of Fair Trading Web Page- Yours Faithfully Heyem Metlej Simply Strata Reports - 9 -
10 ADDITIONAL REPORT Sinking Fund Sinking Fund Forecast prepared by Sinking Fund Plans Australia dated August 2011, part copy enclosed On 7/2/05 changes in the Strata Schemes Management Act came into effect. These changes which apply to all Strata Schemes registered on or after 7/2/05, require the Owners Corporations to plan ahead for the estimated Sinking Fund expenditure over the following 10 year period. Levies will have to be set accordingly to meet the 10 year Sinking Fund estimates. In other words, Owners Corporations will need to work out the likely expenditure on items of a capital nature over the next 10 year period. For new Schemes, the 1 st 10 year Sinking Fund plan must be on the Agenda of the 1 st Annual General Meeting (AGM) & completed by the next AGM. The plan must be reviewed within 5 years of the 1 st AGM; however there is flexibility for Owners Corporations to review their plan annually to facilitate a rolling 10 year plan. The Strata Schemes Management Amendment (Sinking Funds) Regulation 2006 was gazetted 28/4/06. This Regulation requires most NSW Strata Schemes to commence 10 year Sinking Fund planning over the next few years. By 7/09, all Schemes (except those two lot ones that are not required to establish a Sinking Fund) will be covered. As Schemes are brought under the 10 year Sinking Fund planning obligations, Owner Corporations will be required to commence working out their capital expenditure needs for the next 10 years & levying individual lot owners accordingly. Schemes will be brought under the new requirements as follows: Strata Plan numbers 50,000 & over will be caught by the provisions from 1/7/06; Strata Plan numbers 30,000-49,999 by 1/7/07; Strata Plan numbers 10,000-29,999 by 1/7/08; Strata Plan numbers 1-9,999 by 1/7/09. Sinking Funds are intended to provide sufficient reserves for the long term maintenance/repair of the building as well as replacement of common property items. Expenditure on painting & replacement of guttering, roofing & fencing are examples of the items that Sinking Funds should provide for. The aim of this provision is to ensure Owners Corporations better plan their finances to minimise the risk of having insufficient funds when, for instance, expensive building repairs need to be carried out
11 ABBREVIATIONS The following are common abbreviations which may be used in this report: AGM- Annual General Meeting ECM- Executive Committee Meeting EGM- Extra-Ordinary General Meeting OFT- Office of Fair Trading BMC- Building Management Committee MINUTES This Strata report only reports on information contained in the owner s corporation minutes provided to us for inspection going back FIVE year(s) Minutes sighted from the FIRST AGM dated 27/7/2011 to the last meeting held 16/9/2014 Attached for your information is a copy of the minutes of the last AGM sighted 16/9/2014, along with the Financial & Budget Reports. FIRST AGM 27/7/2011 Resolved that an auditor be appointed Resolved to appoint BCS Strata Management as strata managers for the scheme Resolved to obtain a Sinking Fund Forecast Resolved to set the Administration Budget at $45,362 + GST and Sinking Fund at $4,500 + GST per annum Resolved that the by-laws in force be confirmed without alteration Resolved that a caretaker not be appointed at this strata scheme ECM 27/7/2011 Noted that the Annual Fire Safety Statement is obtained through the Building Management Committee EGM 27/7/2011 Resolved that the owners corporation obtain three quotes for an expert to prepare a report to identify possible building construction defects with a view of pursuing the necessary parties to seek rectification of the identified defects EGM 1/5/2012 Resolved to make Special By-Law: Exclusive Use for works Unit 11 AGM 30/8/
12 Resolved that an auditor be appointed Resolved to undertake a safety audit report of the strata scheme Resolved to set the Administration Budget at $50,288 + GST and Sinking Fund at $5,580 + GST per annum Refer to the Income and Expenditure Statement for the year ending 30/6/2012 AGM 16/9/2013 Resolved that an auditor be appointed Resolved to set the Administration Budget at $54,130 + GST and Sinking Fund at $5,859 + GST per annum Refer to the Income and Expenditure Statement for the year ending 30/6/2013 ECM 16/9/2013 Strata manager to contact original builder regarding re continual leak in unit 5 ECM 27/11/2013 Resolved to send notice to comply/ action via Office of Fair Trading to Unit 10 AGM 16/9/2014 Resolved that an auditor be appointed for the ensuing financial year Resolved to carry out a termite inspection on the common property Resolved to set the Administration Budget at $63,528 and Sinking Fund at $5,859 per annum, commencing 15/9/2014 Refer to the Income and Expenditure Statement for the year ending 30/6/2014 Refer to the Budget to apply from 1/7/2014 Full copy of AGM minutes enclosed
13 CORRESPONDENCE This Strata report only reports on information contained in the owner s corporation correspondence provided to us for inspection going back one year. If you wish us to report on information contained in correspondence older than one year than an extra inspection is required. 14/1/2015 Work order sighted to East Coast Plumbers to attend to blocked pipe outside Unit 3, copy enclosed Other Correspondence sighted: 30/8/2011 correspondence sighted noting that the majority response won t proceed with engaging a consultant to report on possible defects, copy enclosed 5/7/2012 correspondence sighted regarding Unit 3 and water penetration within unit. It is reported that cracks have appeared with brown water marks, copy enclosed 8/4/2012 correspondence sighted regarding white stains on concrete facades and water penetration, copy enclosed 1/11/2012 correspondence sighted regarding roof cracks and repairs being carried out by Pedro 1/11/2012 correspondence sighted regarding Unit 3, water penetration and Pedro carrying out investigations, copy enclosed 30/1/2013 correspondence sighted reporting Unit 3 and reoccurrence of water penetration, copy enclosed
14 SIMPLY STRATA REPORTS ABN: Terms & Conditions The contents of this report are based upon an inspection of those body corporate records available for a period of up to seven (7) years prior to the date of this report, unless otherwise stated. Where relevant, information received in the course of conversation with officers of the body corporate and/or the managing agent is included. This Strata Report is based solely on an inspection of the records of the Owners Corporation provided for our inspection and we do not carry out any physical inspection of the unit or of the building. Whilst all reasonable care has been taken in the production of this report, no guarantee of accuracy is offered or implied in respect of the information supplied to us at the time of inspection. You should be aware that in some cases Strata Managers hold a "Pending" or "Work in Progress" (WIP) file which is not made available for strata inspection. Important information which may be contained in such files will not appear in this Strata Report where the files have not been provided to us at the time of inspection. No responsibility is accepted for any loss or damage whatsoever arising from Inaccuracies contained in the information supplied to us at the time of inspection. Where the Owners Corporation s records provided for our inspection contain a notice or order from Council requiring fire safety or occupational health and safety upgrade works to be undertaken this information is included in this Strata Report. However the absence of a notice or order from the Owners Corporation s records should not be taken as indicating that the building complies with the Building Code of Australia in regard to these matters. We recommend strongly that you speak to your solicitor or conveyancer about checking on these matters with Council and, where appropriate, consultants qualified in these areas. It is not unusual for Councils to issue fire upgrade orders or notices on Owners Corporations and compliance can be very expensive. Them existence or absence of easements, rights of way and the like are outside the scope of this Strata Report. This information should be obtained from the title of the unit and of the common property through your solicitor or conveyancer. This report is made for the benefit of the parties listed herein (other than the vendor) and no other person shall be or shall be deemed to be entitled to rely on this report for any purpose whatsoever. Any third party acting or relying on this Report whether in whole or in part does so at their own risk
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