BACKGROUND
Our toolkits have been prepared to provide a cache of information for those using the Metropolis Reporting System. They form the basis of the system itself and provide access to the resources which the system has been designed to provide.
In fact there are 4 toolkits. One each for owners corporations, community associations, neighbourhood associations and company title complexes.
To give some idea of the depth of the advice provided, below is an extract from the resources in the toolkit for owners corporations.
Most items of information in the toolkits have been designed to be transferred into reports where appropriate factual circumstances exist. That means for example in relation to reports relating to owners corporations:
- if we sight major building defects, the article explaining the consequences of defects for buyers in section 4 of the toolkit extract below will appear in part 3 of the buyer’s report;
- if the owners corporation is a member of a community association, the article appearing in section 2 of the toolkit extract below explaining what this means and why we recommend buyers should seek an inspection of the association’s records, will appear in part 3 of the buyer’s report;
- if there is a missing annual fire safety statement, the article in section 2 in the toolkit extract below referring to buyer related consequences of this will appear in part 1.4 of the buyer’s report. There will also be an electronic link in that section of the report to the website of an accredited Metropolis specialist on fire safety for the buyer to contact if they require specialist advice;
- if there is a by-law referring to approvals for work in the subject lot, the article in section 3 of the toolkit extract below referring to issues buyers need to consider about the work including ongoing repair and maintenance obligations which they may ‘inherit’, will be included in part 3 of the report;
- if a lawyer decides that a special condition should be included in the contract for sale where the vendor warrants that works have been undertaken in accordance with a by-law, the lawyer can review the example special condition to that effect in part 7 of the toolkit extract below when drafting the special condition; and
- if our report identifies missing information from the records of the strata manager, a precedent letter from the buyer/lawyer/conveyancer to the strata manager seeking that information in section 6 of the toolkit extract below will be provided in a link to the report.
Strata inspectors preparing reports for buyers, will be expected to follow the style guide in section 11 of the toolkit extract below, which covers the use of language and expressions. This is particularly important to ensure complex expressions and words and phrases are explained consistently, and in plain English.
To provide buyer clients with preliminary information of a general nature, lawyers and conveyancers can access the articles in section 5 of the toolkit extract below. They can then brand them using their own letterhead/logos and make them available to their clients.
Extract of resources in the toolkit – owners corporations
1. Explanations of regularly used terms in strata reports
Administrative fund
Capital works fund
Building Management Committee
Community Association
Neighbourhood Association
2. Explanations of issues arising from missing documents
Building valuation
Annual Fire Safety Statement
Work Health and Safety Report
Asbestos Report
Lift Registration Certificate
3. Explanations of incidental issues often identified in reports
Owners corporation is a member of a building management committee
Owners corporation is a member of a community/neighbourhood association
The repair and maintenance cycle of this complex is at an expensive stage
A notice of a future general meeting of the owners corporation has issued
A special levy may be struck to repay a loan from the capital works fund
Insurance excess is high
Insurance information we sighted does not include a loss of rent component
A by-law has been passed imposing on successive owners obligations in
relation to repair and maintenance of items in their units
Approval has been given for works in the subject lot
4. Explanations of issues often identified in strata reports
Consequences for buyers of building defects in recently constructed strata complexes
Commentary on below budget capital works funds
Council orders
Buying into a complex, the subject of a strata conversion
Buying into older strata complexes
Arrears of levies
Compulsory appointment of a strata manager
Proposed changes in unit entitlements
5. Explanatory articles for lawyers and conveyancers to use their own branding and then place on their letterheads and give to clients
Why buyers need strata inspection reports
Guidance for buyers who want to renovate
Guidance for buyers who want to keep animals
Buying into a complex, the subject of a strata conversion
Buying into older strata complexes
Important issues for buyers in two lot strata subdivisions
Important issues for buyers in 3-10 lot strata subdivisions
Key repair and maintenance considerations when buying into a strata complex
Concerns about vendor strata reports
6. Precedent correspondence
Letter to strata manager seeking further information
Letter to strata manager where insurance cover is lower than in the building valuation
Letter to strata manager requesting missing documents be obtained (eg work, health and safety report/asbestos reports)
7. Example buyer related special conditions for Contracts for Sale
Adjustment of special levies
Vendor warranty - no unapproved works in unit
Vendor warranty – no breaches of by-laws
Vendor warranty – works have been undertaken in accordance with a by-law and all required approvals
8. Commentary on preparing clauses in leases to deal with issues identified in strata reports affecting the subject lot
9. How to access Metropolis accredited service providers
Building inspectors
Strata law experts
Fire safety experts
Work, health and safety consultants
Asbestos consultants
Lift consultants
Building valuers