'subject to strata report' - RE agency doesn't want this

[Beijos23]

Hi
I put an offer down on a strata unit. One condition I wrote was “strata report to the satisfaction of the buyer”
The offer has been verbally accepted and will soon be signed by the owners.

However the agent has just told me that the agency principal has said I need to define what is to be to my satisfaction, specifically. And also, is saying he wants it so that they’ll give me the vendor disclosure form, minutes from strata meeting, strata budget, etc and then I cross that condition out of the contract.

I am confused, what should I do? Once I get this info from the agent (or maybe a report from a company where I pay for it), is this enough to then cross that condition out?

What exactly am I meant to be looking for, either thru vendor disclosure stuff or thru my own report?

Should i cross it off the contract?

thanks

 

[HotRod]

Hi
I put an offer down on a strata unit. One condition I wrote was “strata report to the satisfaction of the buyer”
The offer has been verbally accepted and will soon be signed by the owners.

However the agent has just told me that the agency principal has said I need to define what is to be to my satisfaction, specifically. And also, is saying he wants it so that they’ll give me the vendor disclosure form, minutes from strata meeting, strata budget, etc and then I cross that condition out of the contract.

I am confused, what should I do? Once I get this info from the agent (or maybe a report from a company where I pay for it), is this enough to then cross that condition out?

What exactly am I meant to be looking for, either thru vendor disclosure stuff or thru my own report?

Should i cross it off the contract?

thanks

It's your condition. If you don't know what you're looking for, why put it in?

Things I would look for:

No special levies agreed to in the AGM but not yet implemented. This might come back and bite you after you buy. If there are, get the seller to pay it or put aside money at settlement as they have agreed to it, not you;
Make sure the strata company is financial with no large amounts of money owing by owners (especially the one you are buying). If your seller owes it, they have to pay it back before or at settlement. Also, no large debtors that can't be paid.
Ensure the strata company carries enough insurance, not just for common areas, but for the buildings if they are not insured separately by the owners.
No current litigation against the strata company.

I think there's enough there to ask.

Each of those must specify what rectification you require by the seller and if it can't be done by a due date you can then walk away from the contract. I think you need to at least give the seller the opportunity to rectify.

 

[chilliblue]

Hi
I put an offer down on a strata unit. One condition I wrote was “strata report to the satisfaction of the buyer”
The offer has been verbally accepted and will soon be signed by the owners.

Was the acceptance in writing?


If the acceptance was in writing, you have no need to listen to the agent and advise them of same.

If not, contact your solicitor and seek their advise.

 

[Melbournian]

i would just get a solicitor to have a look at the strata report and once everything is ok - get the thumbs up to the seller.

End of the day - if i was the seller - it seems the condition is rather vague and is fair for the seller otherwise you could say the fees are excessive or the maintenance plans are no sufficient and bail out of the contract.

 

[Jtkumnick]

I agree with Hot Rod- if you dont know why its in there, why put it in?

The way you have it worded here is very vague and no agent/vendor will want it there. Its just an open ended out for you as a buyer- there is no requirement to act reasonably or any qualifications. It just undermines your offer.

I would get all the info from the strata company and run it past your solicitor.

 

[NedKelly]

Hi
I put an offer down on a strata unit. One condition I wrote was “strata report to the satisfaction of the buyer”
The offer has been verbally accepted and will soon be signed by the owners.

Tell him you could change it to "strata report and body corporate organisation to the complete and absolute satisfaction of the buyer”

 

[Terry_w]

The agent should not be giving legal advice or drafting contract clauses. Neither should you be drafting - see a lawyer asap

 

[evand]

The contract is between you and the vendor. It has nothing to do with the agent and it the contract is not between you and the agent. It's an important clause so I'd tell the agent it's up to them to agree or disagree to it.

It's up to the vendor to agree to the condition. Or not.

Ask the agent has the vendor agreed to the condition.

Bloody agents getting in the way of negotiating between vendor and buyer. Talk to your conveyancing solicitor.

 

[Jtkumnick]

The contract is between you and the vendor. It has nothing to do with the agent and it the contract is not between you and the agent. It's an important clause so I'd tell the agent it's up to them to agree or disagree to it.

It's up to the vendor to agree to the condition. Or not.

Ask the agent has the vendor agreed to the condition.

Bloody agents getting in the way of negotiating between vendor and buyer. Talk to your conveyancing solicitor.

the clause undermines your offer. The agents job is to put a deal together that will go through, not to make you happy.
Get the docs you need. It was a badly worded, open ended illegal clause.
Only a solicitor can draft contract clauses. If you want to get the place, check the documents yourself, if they are to your satisfaction- buy it without the clause and stop wasting time.