Welcome to Episode 6 of our podcast, where we continue to share practical property insights with the Southern Highlands community. In this episode, Paul Denny from Bowral Conveyancing Centre discusses the importance of strata reports and why they are a critical part of the due diligence process when buying into an apartment or townhouse complex.
Paul explains what a strata report covers, from the financial health of the owners’ corporation to recurring maintenance issues such as plumbing, drainage, or even concrete cancer. He highlights how the report can reveal upcoming expenses like painting or cladding replacement, as well as how well residents live together and manage disputes.
Listeners will also gain clarity on the role of capital works funds, the laws around pets in strata complexes, and how disputes such as excessive noise or uncontrolled animals are resolved. With his years of conveyancing experience, Paul provides guidance on how to interpret these reports and why they can save buyers from costly surprises.
If you’re considering a strata property, this episode is essential listening. Learn how a strata report can protect your investment and ensure you make an informed decision.
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Key Takeaways from the Episode
Paul highlights why strata reports are a must-have for buyers. Here’s what you’ll learn from this episode:
Understanding Strata Reports – A strata report provides a factual overview of an owners’ corporation’s records, finances, and maintenance history.
Spotting Recurring Problems – Regular issues such as plumbing, drainage, or concrete cancer may point to costly future repairs.
Planning for Future Expenses – Reports reveal upcoming costs like painting or replacing flammable cladding, helping buyers budget effectively.
Financial Health – Healthy administration and capital works funds reduce the risk of sudden special levies.
Living Conditions – Reports highlight lifestyle factors such as disputes, noise complaints, smoking concerns, and pet issues.
Legal Protections for Pets – Owners cannot be prevented from having pets, but problem animals may be ordered to be removed through the Tribunal.
Expert Guidance – Bowral Conveyancing Centre reviews strata reports, explains the findings, and ensures buyers understand the implications before purchasing.
Podcast Transcript
Episode Title: Why You Need a Strata Report Before Buying
Host: Ian (Speaker 2)
Guest: Paul Denny (Speaker 1)
Date: September 29, 2024
Transcript
Ian (00:00.244)
It’s time to talk about Strata, and I really love this. I love this time of Monday morning when we have a bit of a yarn with Bowral Conveyancing Centre, or more specifically with Paul Denny, about all sorts of things to do with conveyancing. And today we’re talking… good morning, Paul.
Paul (00:15.500)
Good morning, Ian.
Ian (00:16.200)
This morning we’re talking about Strata reports.
Paul (00:18.500)
Yes, when you’re buying into a strata property, one of the reports you can get is on the owners’ corporation, which involves an inspector going in to look through the books of the strata and then producing a report telling us all sorts of things about what’s happening with that particular development. It’s money well spent and a wealth of information.
One of the big important things is the history of what they’ve been spending money on over the years. For instance, are there recurring problems every year with plumbing or drainage, or even sometimes concrete cancer? If that’s coming up constantly every year in little bits and pieces, well, that may be a sign of a more significant problem that’ll have to be addressed at greater expense later on.
It also looks at future expenditure. Maybe not so much nowadays, but a few years ago, a big thing was cladding. When a lot of the cladding was found to be flammable, it had to be replaced. The report can give insight into what that would cost. Painting, if it hasn’t been repainted for the last five years, there might be a big painting bill coming up. So it’s a fishing exercise to see what’s going on.
What’s the financial standing of the strata? How much money they have in the banks? It’s supposed to be what they call an administration fund, which is for day-to-day expenses like cleaning and insurance, but also a capital works fund, which we used to call a sinking fund. They’ve got to build money up so when these big expenditures do come up in the future, there won’t be a special levy that needs to be raised to cover those works.
It also looks at how well the people live with each other. Is there a problem with noise? Smoking can sometimes be an issue, and even pets, because, of course, you can’t exclude pets like dogs and cats nowadays by law.
Ian (02:21.056)
But you can complain about the noise they make.
Paul (02:23.000)
Yes, you can have rules about them. If someone wants to keep a small dog in their apartment, they can’t be prevented from doing so under the law.
Ian (02:30.000)
So what if the dog barks a lot and they have a rule that says the dog…
Paul (02:34.000)
Well, it would have to be removed. If it becomes a problem, then there’s an application to the Strata Tribunal to make an order for that dog to be removed if it can’t be controlled.
Ian (02:44.500)
Now, Paul Denny, you can explain all of this to people. And they would be well advised to give you a call and have a bit of a yarn if they’re thinking about buying a property within some sort of complex where Strata is involved.
Paul (03:11.992)
Certainly, absolutely. And often the strata report is provided by the agent, which is very good. So we will look through that and give some advice on that.
Ian (03:19.000)
Yes, even though the agent has provided it, it’s still worth having a second opinion.
Paul (03:22.500)
Look, a Strata report is different from a building report because it’s a statement of fact rather than an opinion. So I’m quite happy to rely on one that’s provided, as long as it’s recent, because it’s a factual report, not an opinion.
Ian (03:38.000)
Okay, but there could be a word or two that needs to be changed. So if people want to get in touch with you, what is the best way to do that?
Paul (03:45.056)
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Key Information
Website: www.bowralconveyancing.com.au
Paul Denny is far from your average conveyancer. With a career spanning over four decades, Paul has established himself as a trailblazer in the industry. Starting his career in South Australia in 1978, Paul had early exposure to working alongside solicitors, gaining hands-on experience in the conveyancing landscape.
When legislation finally allowed the licensing of conveyancers in New South Wales in 1993, Paul didn’t hesitate to relocate and become the first licensed conveyancer in the state. From that moment, he made it his mission to deliver exceptional service, simplify property transactions, and help clients achieve their real estate goals.
After years of managing a successful practice in Sydney under the Paul Denny Conveyancing name, Paul took a step back from running a large organisation. However, his love for conveyancing led to the creation of Bowral Conveyancing Centre, a boutique service dedicated to the Southern Highlands community.