Topic: Strata report – unreadable, and admin fund doesn’t look right – FLAT CHAT

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22/08/2011 at 8:22 am #7598 Reply | Quote
Phil T
I'm about to buy into a strata (second one – first one was an investment, but this one's to live in) but my solicitor handling the purchase has raised a few issues regarding the strata report that he's received.

Firstly, a large number of the 120 (!) pages are apparently unreadable, so he's had to go back and request a readable copy. (Are strata reports normally that large – I would normally expect a 30-odd page report. There are 80 units in this strata).

Next, of those readable pages, the solicitor has pointed out that it looks like the admin fund may be tens of thousands in debit, yet the sinking fund is about 150K in credit.

There was one further issue regarding some possible defects which are the subject of legal action against the builder (the insurance company being involved), however one cannot find out what they are as the details are in the unreadable pages.

Realistically, with regards to this strata report, wouldn't there an obligation of sorts to the strata manager/agent to provide a full report, and definitely one that's readable?
It also strikes me as odd that the admin fund is in debit (my solicitor is guessing, from the readable pages, that it has something to do with incurred legal fees) – can this result in an unworkable strata as such?

My solicitor (and I) are awaiting the revised report but could this be the hallmarks of an OC/EC not managing the funds properly (and the strata manager/agent playing games [with the unreadable report]), or simply a case of all things going wrong at once and I'm reading too much into it?

–Phil.
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Reply To: Strata report – unreadable, and admin fund doesn’t look right

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