Strata Report Shows Outstanding Money

[WigansAFC]

Hi All,

I received a Strata report for a property about 2 hours ago an d after reading the report i have found that the Vendor hasn't paid their strata contributions for about 12 months. Thus accruing interest and is currently in 'stage two' of debt collection

What does this mean exactly? From my understanding this is my responsibility if I settle on the property. Cooling off ends tomorrow so i am wondering what is the best way to proceed.

From my understanding this is my responsibility if I do proceed.

Could this also be a potential negotiating tool to get the price down further to offset this cost? I believe that this unit is a good deal but not sure on this point.

is there anything else i may have missed while reading the report (bit of a newbie at this)

Thanks for reading this post so far, i have appreciated all your help in the past and the knowledge you have all shared so far!!

Regards

Michael

 

[DaveM]

The strata debt will be cleared out of the proceeds of the sale by the vendor. eg owes $15k strata levies, the settlement will disburse $15k to the ownesrs corporation.

You just need to be satisfied the vendor can discharge the property, if he does not have enough $ to pay out the levies and other costs + loan balance, the bank wont release the title.

 

[WigansAFC]

Thanks DaveM

Does this mean when the strata report says "are there any mortgages shown on the lots within the strata roll? No" does that mean the Vendor does not have a mortgage?

 

[Raddles]

HI there
you should also make sure that any "recovery costs" by the debt collectors is also included in the strata payments to be made - so there is no comeback on you

Not quite sure if they are saying there is no mortgages on the body corporate property - I doubt that they would search individual lots for their mortgages.

 

[DaveM]

Means there is no mortgage listed on the strata roll... could mean there is no mortgage, could mean a less than competent maanger didnt update things on sale. Your soli can confim with a current title search.

 

[DaveM]

you should also make sure that any "recovery costs" by the debt collectors is also included in the strata payments to be made - so there is no comeback on you

In NSW, recovery costs are owner invoiced and form part of the lot debt, so any payout cost would be including recovery.

 

[datto]

A unit was recently sold in our block. The owner owed thousands in arrears plus costs. The debt was cleared on settlement. Now our strata funds have never looked better. We were so happy they sold.

 

[WigansAFC]

thanks for all the help, Greatly appreciated!!

I feel better knowing that itll all work out on settlement. So the purchase price remains the same and a portion goes to paying outstanding debt!

AWESOME NEWS!

Thanks