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Is there a difference between how these checks work in theory and how useful they are in the real world?
For example, even if I go to the trouble of investigating and taking copies of previous minutes of meetings as I theoretically should, if the building's self-certified and run by goons connected to the original builder then in practice the defects might be concealed and covered up. This would make such searches time-consuming and meaningless.
There are probably all sorts of checks that people with experience could offer to potential first-home buyers.
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There is an increasing number of strata specialist search firms – or, at least, they say they are – employed by solicitors. The problem is that if your solicitor or conveyancer doesn't know what to look for then they won't know what's been missed in the search. There's a case elsewhere on this Forum of a woman who bought an apartment in what she thought was a pet-friendly building, not realising there was a plan at the next AGM to ban pets. Neither her solicitor or their search people had thought to tell her about this.
Strata is a special area and you should use specialists at every opportunity.
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Yes, I agree. You should engage a specialist strata searcher to search the books and records and provide a report with respect to the financial position of the strata scheme, whether there are any past or current disputes (both legal and personal), by-laws including those conferring rights of exclusive use of common property on one or more lot owners; amount of levies set per quarter for sinking and administrative funds and the potential for special levies.
You may also wish to check out austlii website and search for any cases before the Tribunal or Courts concerning the strata scheme in which you propose to purchase. The results of such search will provide an indication as to whether the Owners Corporation could be potentially liable for damages and costs (for instance against an aggrieved lot owner).
Primarily, your strata searcher should look closely at the last budget and the balance sheets to ensure that the Owners Corporation's spending is in line with the budgets agreed upon by the owners at the last Annual General Meeting and review any unusually large expenditure (both current and proposed). Generally, the financial accounts speak for themselves.
In addition, review the Executive Committee minutes of meetings and ascertain the types of decisions the EC is making. For instance, is it unreasonably litigious or agreeing to inappropriate items of expenditure. Question whether the Executive Committee is restricted in its powers by the Owners Corporation including any limitations on spending.
Finally, the strata searcher should review any reports such as engineer's reports with respect to the structural integrity of the building and ascertain if any claims have been made on the strata scheme's insurance.