When you buy a house, you own the land and everything on it. Strata ownership is different. You own your individual lot and share ownership of common property with every other lot owner. This shared ownership creates both benefits and risks that require careful analysis during conveyancing.
Understanding the Owners Corporation Structure
The Owners Corporations and Other Acts Amendment Act 2021 introduced a five-tier system for Owners Corporations in Victoria. The tier depends on the number of lots in the scheme and determines the level of financial reporting and committee requirements. Larger schemes have stricter governance obligations. We identify which tier applies to your purchase and what this means for transparency and accountability.
Levy Adjustments at Settlement
Standard strata settlement adjustments include the pro-rata division of quarterly levies. You pay for your share of levies from settlement day onwards. However, special levies require closer attention. Special levies struck before the contract date are typically the vendor's liability. Those struck after may fall to you as the buyer. We calculate these adjustments accurately and ensure the contract terms protect your interests.
Reading Between the Lines of Strata Minutes
Meeting minutes reveal what the owners corporation has discussed, planned, and approved. We review at least two years of minutes to identify patterns and upcoming issues. Has the committee discussed major repairs? Are there disputes between owners? Has the building manager changed frequently? These details don't appear in financial statements but affect your future as an owner.
Off-the-Plan Strata Purchases
Buying a strata property off-the-plan involves additional risks. The by-laws may not be finalised. The budget is an estimate. You won't see actual meeting minutes because the scheme doesn't exist yet. We review the disclosure statement, proposed by-laws, and estimated budget to identify potential issues. We also explain sunset clause risks and your rights if the developer delays completion.
Body Corporate Contract Review
Your contract of sale contains specific strata-related conditions. We review vendor warranties about levy arrears, special resolutions, and legal proceedings. We check that the Owners Corporation Certificate is current and complete. We verify that any disclosed defects or disputes match the information in strata records. Inconsistencies can indicate problems the vendor hasn't fully disclosed.
PEXA Settlement for Strata Properties
We handle electronic settlement through PEXA for all strata purchases. This includes coordinating with your lender, the vendor's representatives, and the owners corporation to ensure levy adjustments are correct and settlement proceeds smoothly. We manage the entire process and keep you informed at each stage.