Buying a unit before the body corporate is set up

[James Bond]

Hi, we have looked at a unit which is only a few weeks old. 6 other units in the complex are owner-occupied. There is no body corporate set up yet and we were wondering whether we should a) run away b) wait until the BC is set up but risk losing the unit to another purchaser or c) purchase subject to some BC conditions?

Has anyone else ever bought in this situation?

Thanks

JB

 

[vaughan]

If VIC is anything like NSW, you should read the strata legislation -- it's all in there, what happens when strata plans are new and how the body corporates are first set up.

 

[Aaron_C]

Is a body corporate even required?

 

[Daj]

It is likely that if no body corporate is set up your purchase will not go ahead until one is because the Land title's office may knock the transfer back. Maybe you should set up a body corporate which is now referred to as an owners corporation. It is around $120 to register.

www.acpworks.com.au

 

[Melbournian]

It is likely that if no body corporate is set up your purchase will not go ahead until one is because the Land title's office may knock the transfer back. Maybe you should set up a body corporate which is now referred to as an owners corporation. It is around $120 to register.

www.acpworks.com.au

unlikely - there wasn't one when i bought one of my places - it should just go through unless the vendor lawyer is that picky.

i have had owners corporation certifcates whereby they state the owner needs to do this and that and be around 24 hours to supervise any maintenance wwrk at their unit. it gets to a point where it is considered an unfair rule

 

[Scott No Mates]

Nothing wrong with buying before the first AGM is held - there was a piece on ABC 702 radio in Sydney on Tuesday (probably available by Podcast). At the first AGM you have to elect the exec committee, you also have to vote as to whether to appoint the existing strata manager (probably sourced by the developer) or appoint another, likewise set up all the maintenance contracts, building manager etc - danger of accepting the developer's nominated contractors is that they may be incompetent, have very long locked in contracts or be very expensive - you may wish to set up a series of one + one year contracts to see how they go.