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WHAT YOU NEED TO KNOW ABOUT STRATA DISCLOSURE STATEMENTS

Queensland law requires a Strata Disclosure Statement be attached to the Contract of Sale of any property that is part of a Body Corporate. Vendors in Queensland must include a warning statement in the contract of sale advising the buyer of the cooling-off period. They also need to recommend potential buyers seek professional legal advice and an independent property valuation before they sign the contract.

WHAT’S IN THE BASIC DISCLOSURE STATEMENT?

The Basic Disclosure Statement attached to the contract of sale will give you the following information:

  • It will let you know whether the strata property has a Body Corporate Manager or the Body Corporate is self-managed.
  • Whether there is a Committee or a Body Corporate Manager engaged to perform the functions of the Committee.
  • What the current levies are.
  • Whether there are any current or proposed Special levies.    
  • What the Assets of the Body Corporate are.
  • Identify improvements on the common property for which the owner is responsible.

It’s important to know, the Disclosure Statement does not include the Implied Warranties owed by the Vendor. These warranties include any defects or “other liabilities” not disclosed in the contract, as well as a statement from the Vendor that there are no other circumstances in relation to the Body Corporate that will materially prejudice the Buyer.

Some vendors will provide a separate Implied Warranties Statement, but this is not required by law, and many do not. A Strata Report will include this information so make sure you always ask for a Strata Report along with a Disclosure Statement. This will give potential buyers a complete picture of what to expect so there are no hidden costly surprises.

To learn more about Strata Disclosure Statements, please call our friendly staff at Holland Searches at Varsity Lakes on 0481 258 182 and we’d be happy to answer all your questions.

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