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I am looking at a small property that is strata title but has no strata fee or manager. Essentially the owners in the block appear to cooperate together when a common area requires maintenance.
Are there any problems with this? Or an legal things to be aware of when buying into a property such as this?
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Such an arrangement can work
Its not strictly in keeping with the act, but if no one complains, who cares.
BUT if one owner takes exception to any small issue, there can be lots of problems.
Going to NCAT is going to be a nightmare as the strata will be exposed as non compliance.
It could get to a situation where a compulsory strata manager is appointed.
If you are comfortable with the arrangement, then buy in. Just be aware that resolving future problems could be difficult because there is no legal structure in place.The status quo is unlikely to remain given a new player is coming into the dynamics.
I’m with Kaindub on this. Strata schemes run on a wink and a nod are great … until they’re not. Then they’re a disaster. If you like the unit, get a thorough building inspection done before you buy in.
Then gradually nudge the other owners towards doing things properly. Telling them that their informal arrangement will put future buyers off, as it almost did you, as there will probably be no long-term maintenance plan (which is mandatory).
Small schemes often get by on one meeting a year (the AGM, which is also a committee meeting). Software like Stratabox will allow you to self-manage in a professional way so that future purchasers will not be deterred.
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