100 townhouse estate.

Discussion in 'What to buy' started by Infra, 15th Dec, 2020.

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  1. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Thanks, yes I know the difference between Torrens and Strata title and this wasn't my question. I should have been clearer...if they're strata, unless laws are different in Victoria, then building insurance wouldn't be covered by the individual lot owners, it would be covered by grouped insurance on the OC. I was enquiring as to whether if they're strata then why are they individually insured. Cheers.

    - Andrew
     
  2. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Out of interest is this your interpretation? 'Common property' pertains to the roof on the building, the walls outside of the coat of paint, gates, fences, etc. Basically any land, building or airspace that are not lots on the plan of subdivision, by definition.

    It doesn't mean property that is only shared by other lot owners per se. There is a difference between exclusive use property and common property. In almost all strata complexes the individual lot owner only needs to insurance contents of the lot i.e. for items that have exclusive use to that lot and which are contained in the lot of subdivision, which is usually different to building insurance e.g. if there is a fire you would be responsible for the kitchen, but not the walls.

    You might have over-insured yourself. Best thing to do is get a copy of the building insurance policy from the OC and check what it covers. My guess is that you don't need to insure the building yourself which is a common mistake I've seen with owners in strata titled complexes, especially townhouses where there is a different perception to units. They're the same thing for the purposes of insurance.

    - Andrew
     
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  3. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Correct.

    - Andrew
     
  4. The Y-man

    The Y-man Moderator Staff Member

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    Great point!

    The Y-man
     
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  5. sharon

    sharon Well-Known Member

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    I have a question that might be relevant to this discussion.
    If you buy a new build townhouse - is it normal/appropriate to get an independent building inspection prior to handover?
     
  6. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    No, particularly if it is newly built because you have a builder's warranty.

    If it's an existing townhouse you would treat it like a unit and get a strata report from the OC. I would also have an electrician and plumber perform independent checks because strata by-laws can be different with what pertain to exclusive use. The main consideration with buying into a strata complex is to ensure there aren't any major known defects that will require special levies. These can be crippling for new owners if they find out after the fact and indeed for current owners, are often a forced sell if the levy is too big for issues that are expensive to fix.

    As an example, there might be a major drainage and plumbing problem in the ground floor courtyard which would fall under common property and be the responsibility of the OC, despite it being a part of the ground floor unit. All associated quotes and diagnosis for this would be detailed in the strata report.

    - Andrew
     
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  7. sharon

    sharon Well-Known Member

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  8. Infra

    Infra Member

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    Talking about liabilities, looking through S32, under legal proceedings, it says

    Owners Corporation has received Magistrates' Court Complaint by the owner of Lot 74 and Notice of Defense has been issued by solicitors representing the Owners
    Corporation

    I am wondering, if these kinds of things will cost owers corporations a lot of money and in turn charge the lot owners special levies? Is this something to be concerned about?

    How do I get more information about this complaint? Talk to sellers agent i assume?
     
  9. The Y-man

    The Y-man Moderator Staff Member

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    The sellers agent will likely say "Nothing to see here! Nothing to worry about! Carry on, carry on!'
    The OC manager is more likely to give you the full answer..

    The Y-man
     
  10. Infra

    Infra Member

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    Cool, thanks, will give OC a call.
     

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