For Clients receiving Reports Conducted on behalf of Morton Real Estate we note the following information:
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1 For Clients receiving Reports Conducted on behalf of Morton Real Estate we note the following information: The report was prepared at the request of the selling Agent with the understanding the report may be made available to prospective purchasers for use as an informative document/tool only. Any queries related to the report/s should be directed to the agent referenced on page 2 Should a prospective purchaser wish to place reliance on the report a fee of $165 inc. GST is applicable. Please contact us via or phone to organise such requests All other disclaimers relating to reports by I & D Strata Searching remain applicable to these reports 1 P age
2 STRATA SCHEME INSPECTION REPORT DATE OF INSPECTION: 14 March 2018 PROPERTY: CLIENT: CLIENT REFERENCE: 19 / William Street, Woolloomoloo Morton Real Estate Joshua Thomas STRATA PLAN: 'Paramount Apartments' LOT/S: 19 DISCLAIMER 1 I & D Strata Searching ( I & D ) is the provider of this Report and the Client is the person/entity who has requested the Report. I & D is not liable to any other person who relies upon this report to their detriment. 2 This Report has been provided specifically by I & D for the client and in relation to the specific property referred to in this Report. This Report is to assist the client to interpret and understand the Report and its limitations. 3 I & D has prepared this Report from extracts of books and records provided to it by the relevant officer of the companies, bodies, entities, owners/corporations, so far as was possible, and from conversations with the Managing Agent and/or the relevant officers of those bodies, entities, companies owners/corporations. 4 The Client is specifically directed to the possibility that all of the records provided to it by the relevant officer of the companies, bodies, entities, owners/corporations, may not have been made available for inspection, or may not have contained all of the information of interest to the Client or the client s mortgagee. 5 No attempt was made during the course of inspection to ascertain whether any Managing Agent or the relevant officer of the companies, bodies, entities, owners/corporations, have complied with detailed accounting requirements of the Property, Stock and Business Agents Act I & D is not liable for any costs,( including legal costs)loss or damage whether direct, indirect or consequential, arising or touching upon (i) any delay in supplying this Report (ii) any failure or omission to supply the Report (iii) any error or omission recorded or omitted from the records inspected by I & D. (iv) Any error or omission in this Report. 7 Warranties and conditions implied by Legislation or precedent for the provision of services, are excluded save as are implied by the Trade Practices Act Any liability of I & D shall be limited to the cost of the supply of the relevant Report. 9 This limitation of liability extends to every employee officer and agent of I & D in the performance of any services relating to this Report. 2 P age
3 CONTENTS STRATA INSPECTION SUMMARY... page 4 STRATA ROLL... page 5 OWNER DETAILS... page 5 BY LAWS... page 5 GENERAL INFORMATION... page 6 EXECUTIVE COMMITTEE..... page 6 MANAGING AGENT... page 6 INSURANCE / VALUATION... page 7 BOOKS OF ACCOUNT... page 8 MAINTENANCE CONTRIBUTIONS & SPECIAL LEVIES page 8 ANNUAL FIRE SAFETY STATEMENT.. page 9 WORK HEALTH & SAFETY REPORT... page 9 10 YEAR CAPITAL WORKS REPORT. page 9 ASBESTOS MANAGEMENT REPORT.. page 9 BUILDING DEFECTS UNDER HOME OWNERS WARRANTY... page 10 OTHER MAJOR REMEDIAL WORKS. page 10 MINUTES OF MEETINGS... page EXPENSE HISTORY.. page 13 OTHER IMPORTANT NOTES... page 14 ATTACHMENTS LOT & FINANCIAL INFORMATION (Attachments)... Refer attached ADDITIONAL INFORMATION (Attachments). Refer attached 3 P age
4 1. STRATA INSPECTION SUMMARY NOTE: Do not solely rely upon this summary page. The report is to be reviewed in its entirety. 1. Are any building defects or major remedial works noted? Refer page 10> 2. Insurance premium cost & due date? Paid by BMC Due;; (A) What are the approx. balances of the Administrative & Capital Works? Administrative Fund: $ 66, Capital Works Fund: $ 531, Investment Fund: Included above (B) What are the current levy contributions per quarter for Lot 19? Administrative Fund: $ Capital Works Fund: $ Other: N/A 4. When are levies paid up to (Lot 19)? 31 March What are the current arrears (Lot 19)? Nil Noted 6. Are there any current special levies? No 7. Possible special levies in the near future? No 8. When was the last Annual General Meeting held? 7 March Have there been any changes / additions to the By-laws in the last two Years? Yes - refer Minutes of Meeting 10. What is the unit entitlement for the subject Lot? 66 / 10, Were any Asset or Compliance Reports sighted? Yes refer to page Is the Strata Plan Part of a Community Association or Building Management Committee? Yes refer to page 14 4 P age
5 2. STRATA ROLL Was the Strata Roll in compliance with the following aspects of Part 10, Division 1 - Strata Schemes Management Regulation 2016? From the entries on the Strata Roll, does the Initial Period appear to have expired? Yes Yes OWNER OF LOT 19 Name - Mortgagee - Original Owner: Benjamin Paul Keen None noted Joypack Pty Ltd OTHER ENTRIES Number of Lots: 91 Number of Units: 91 Unit entitlement of subject Lot/s: 61 / 10,000 Strata Plan registered: 12 July 2005 Was the Original Certificate of Title for the common property sighted? No only copy sighted STRATA SCHEME BY LAWS Do the records suggest that the By Laws have been changed or added in the Past two Year? What is the attitude of the Owner s Corporation to the keeping of animals? Is there any evidence of approval for animals being refused? Is there any evidence of approval for animals? Were any exclusive use by-laws registered in the past two years affecting the subject Lot? Yes refer to Minutes of Meetings Refer By-Laws for complex No No No 5 P age
6 3. GENERAL INFORMATION STRATA COMMITTEE Chairperson Nick Tizzone Secretary Peter Buchanan Treasurer Robert Tait Executive Committee Refer to minutes attached dated - 7 March 2017 HARMONY State of harmony within the scheme: History of disputes: No problems recorded No problems recorded List of disputes noted (if applicable) Þ Nil noted MANAGING AGENT DETAILS Is there a Managing Agent? Yes If so, name & telephone number- Name: Bright & Duggan Phone: (02) Managers Name: Alex Borzilo License No: P age
7 4. INSURANCES DETAILS DETAILS OF BUILDING INSURANCE Þ Sum Insured $ 62,800, Þ Insurance Company CHU Þ Policy Number Þ Due Date Þ Excess Refer to attached Þ Premium PAID BY BMC DETAILS OF PUBLIC LIABILITY COVER Þ Sum Insured $ 30,000, Þ Premium Included ADDITIONAL INSURANCE COVER Þ Voluntary Workers $ 200,000 / $2,000 Þ Loss of Rent $ 9,420, Þ Catastrophe $ 18,840, Þ Common Contents $ 400, Þ Office Bearers Liability $ 5,000, Þ Fidelity Guarantee $ 100, Þ Lot Owners Fixtures $ 250, Þ Government Audit Costs $ 25, Þ Health & Safety Breaches $ 100, Þ Legal Defence Expenses $ 50, INSURANCE COMPANY DETAILS CHU Underwriting Agencies Phone: INSURANCE BROKERS DETAILS Not applicable VALUATION DETAILS Amount: $ 62,800, Conducted by: AG T Thomas Valuers Year: 17 th January P age
8 5. BOOKS OF ACCOUNT FINANCIAL ACCOUNTS Þ Approximate balance of the Admin Fund? $ 66, Þ Approximate balance of the Capital Works Fund? $ 531, Þ Approximate balance of the Investment Fund? Þ Funds are currently held in trust as follows:- Þ Are there any arrears noted for the complex Included above Bank: Nil Noted Nil noted MAINTENANCE / LEVY CONTRIBUTIONS The records indicate that current standard contributions for Lot 19 are as follows : Þ Administrative Fund per quarter: $ Þ Capital Works Fund per quarter: $ SPECIAL LEVY CONTRIBUTIONS Details of current special levies are: Not applicable Þ Date Determined Þ Fund Þ Amount Þ Due Date Þ Purpose Þ Amount paid by Lot 19 Þ Balance owing for Lot 19 APPROVED BUDGET Current Budget adopted (per annum) for the Strata Scheme effective - 1 October 2016 Þ Administrative Fund: $ 497, Þ Capital Works: $ 80, P age
9 6. COMPLIANCE ANNUAL FIRE SAFETY STATEMENT (AFSS) NOTE- Refer to the Environmental Planning and Assessment Act 1979 legislation and Regulations 2000 for full details / explanation regarding the Legislative requirements relating to Fire Safety Measures. Þ The Annual Fire Safety Statement (AFSS) for Strata Scheme is noted on file dated (copy attached) WORK HEALTH & SAFETY (WH&S) NOTE- Please refer to the Work Health and Safety Act 2011 for full details / explanation regarding the Legislative requirements for WH&S Þ Are any WH&S Report/s or documentation/s sighted for the strata scheme? No ASBESTOS REPORT / REGISTER & MANAGEMENT PLAN NOTE- Please refer to the Work Health and Safety Act 2011 for full details / explanation regarding the Legislative requirements relating to Asbestos materials. Þ Are any Asbestos Report/s or documentation/s sighted for the strata scheme? Þ No CAPITAL WORKS FUND FORECAST REPORT NOTE: Please refer to Section 80 of the Strata Schemes Management Act 2015 for full details / explanation regarding the Legislative requirements relating to 10 Year Capital Works Fund requirements. Þ Is a 10 Year Capital Works Fund Assessment Plan noted on file the strata scheme? Yes Þ We attach extracts of a Sinking Fund Plan / Report for dated prepared by QIA Group Pty Ltd 9 P age
10 7. BUILDING DEFECT MATTERS BUILDING DEFECTS UNDER HOME OWNERS WARRANTY (H.O.W) Þ Were any evidence of any claims under the Home Owners Building Warranty Noted? No MAJOR REMEDIAL WORKS NOT INCLUDING H.O.W Þ Were any evidence of any other major remedial works for the strata scheme for the past 5 years excluding H.O.W Building Defects Claims? Ø Records indicate that major painting works were undertaken in 2016 totalling approx. $168, No contract documents or quotes associated with the works were noted on file;; however we sighted & attach copies of paid invoices to CPR Group for the works including the final payment dated 11 th July P age
11 8. MINUTES OF MEETINGS SUMMARY ONLY Þ Sighted back to the AGM dated: 3 March 2010 Þ Date of most current Minutes sighted: 7 March 2017 Þ Date of First AGM (if noted): Not Noted a. History of (past) special levies raised in the last five years? Nil b. Are any meetings of the Owners Corporation scheduled in the near future? Attached is a Notice for an AGM to be held , which includes a proposed reduction of the Budget & various By-Law Amendments Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated refer attached: The Following budgets are adopted per annum: Admin Fund $497, & Sinking Fund $80, Auditor appointed Executive Committee elected Motions Defeated the following items;;- update Capital Works Funds, Window Safety Devices-Child Safety. BMC Paramount Apartments representative elected Current By Laws reviewed and consider any amendments. Specially resolved to create By-Law Limit on Occupancy Extraordinary General Meeting (EGM) dated refer attached: Specially resolved to create By-Law pertaining to lot 33 - 'Works - Lot 33' Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated refer attached: The Following budgets are adopted per annum: Admin Fund $502, & Sinking Fund $55, Auditor appointed Executive Committee elected BMC Paramount Apartments representative elected Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated refer attached: The Following budgets are adopted per annum: Admin Fund $525, & Sinking Fund $32, Auditor appointed Executive Committee elected BMC Paramount Apartments representative elected Extraordinary General Meeting (EGM) dated : Specially resolved to create By-Law pertaining to Lots 90 & 91 and the removal of a boundary wall Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated : The Following budgets are adopted per annum: Admin Fund $502, & Sinking Fund $55, Specially resolved to elect Robert Tail as the representative to the Paramount Apartments Building Management Committee, being a member of Lot 1. Child window safety devices: amended legislation reviewed. Building manager to commence investigation to determine the Scheme s compliance to this and obtain the required certification or recommendations for compliance purposes. Specially resolved to create By-Law pertaining to smoking 11 P age
12 8. MINUTES OF MEETINGS SUMMARY ONLY Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated : The Following budgets are adopted per annum: Admin Fund $444, & Sinking Fund $100, No major issues noted Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated : The Following budgets are adopted per annum: Admin Fund $442, & Sinking Fund $110, In accordance with the Strata Management Legislation Amendment Bill 2008, Schedule 1, Part 4, Nick Tizzone (Executive Committee) made a disclosure to the meeting that he is an employee of Joypack Pty Ltd Extraordinary General Meeting (EGM) dated : Specially resolved to create By-Law pertaining to compliance with Planning Law and other requirements Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated : The Following budgets are adopted per annum: Admin Fund $489, & Sinking Fund $75, Auditor appointed Resolved to renew Managing Agent agreement with Bright & Duggan Pty Ltd Resolved to obtain Sinking Fund Forecast updated Resolved that the End of Warranty inspection not be carried out on the building for provision of a Home Owner Warranty Defects Report Noted that the end of the warranty will expire on Nick Tizzone (Joypack Pty Ltd original builder/developer) abstained from voting on this motion Noted that if owner has observed any defects, internally or externally, a form is to be filled out and provided to the Building Manager no later than The executive Committee will then review all notification and determine the next course of action. Inspections can be carried out by the Individual Owners Consultant and all notifications must be submitted to the building manager or the strata managing agent no later than Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated : The Following budgets are adopted per annum: Admin Fund $490, & Sinking Fund $75, Auditor appointed Specially resolved to create By-Law pertaining to the conduct of Lessees and others No major issues noted 12 P age
13 9. EXPENDITURE HISTORY SUMMARY OF MAJOR EXPENSES ONLY: Expenditure for period 1 st October 2017 to 14 th March 2018 Þ Refer attached statement Expenditure for period - Year Ending 30 th September 2017 Þ Refer attached statement Expenditure for period - Year Ending 30 th September 2016 Þ Refer attached statement Expenditure for period - Year Ending 30 th September 2015 Þ Refer attached statement Expenditure for period - Year Ending 30 th September 2014 Þ Refer attached statement Expenditure for period - Year Ending 30 th September 2013 Þ Refer attached statement 13 P age
14 10. OTHER IMPORTANT NOTES: Þ No search has been made of these or any other agreements that may have been entered into by the Owners Corporation. Þ We found no evidence of any current or proposed litigation involving the Owners Corporation. Þ From the records provided for our inspection we did not note any apparent Notices or Orders which adversely affect either the Owners Corporation or the subject Lot. Þ Attached is correspondence/advice dated from Turnbull Bowles Lawyers being By-Law review Þ The Strata Scheme SP75152 is part of a Building Management Community (BMC) no. DP also known as Paramount Apartments to which it pays a regular contribution. We note that only the records for SP75125 have been inspected, and should an inspection of the BMC records be required and additional fee would need to be negotiated. 14 P age
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