The current standard reporting system goes back to the 1970’s when it was first introduced.

Historically, the role of a strata searcher in that relationship was to collect buyer relevant information from the records of the strata manager and provide it in the form of a report to lawyers and conveyancers.

The role of the lawyers and conveyancers in the relationship was then firstly, to identify from that information risk related issues of concern to buyers.  Secondly, they then needed to explain the consequences of those risks to their client/buyers. The aim was to place their clients in a position to reach an informed opinion as to whether they should proceed to buy.

That relationship may have worked in the 1970’s when it was first introduced.  In the modern-day apartment market in New South Wales the relationship no longer works.  Principally this is because:

• with the advent of fee lowering competition from conveyancers, both lawyers and conveyancers now rarely have scope in their fee budgets to provide such advice.  That means they often pass on reports to their clients without comment, and sometimes without even reading them;
• even if lawyers and conveyancers did have the necessary scope in their fee budgets to provide such advice, the modern-day complexity of the laws and practices relating to strata complexes, and the number of multi occupancy styles of developments available to buyers in the New South Wales market, provide substantial impediments to the provision of quality advice to buyers.  The area is now so complex that unless lawyers and conveyancers are expert in the area, they do not have the necessary expertise to adequately identify and explain the issues their clients need to understand; and
• even if lawyers and conveyancers were experts in strata law, because most of the information buyers need to understand is operational and best understood by strata managers and other specialists such as those relating to fire safety and work, health and safety, lawyers and conveyancers simply do not have the necessary knowledge to adequately identify and explain the issues to buyers.

The breakdown in the complimentary business relationship between strata searchers and lawyers and conveyancers, has led to a serious shortcoming.  Essentially it now means that buyers of units in New South Wales do not have the necessary information before them to reach an informed opinion as to any risks and their consequences before they decide to buy.

Our reporting system has been prepared to address this problem.