Do Homework Before Buying Within a Residential Owners’ Corporation

With house prices on the rise in many inner city suburbs, some buyers are finding townhouses and apartments a more affordable option.

However, according to property expert Mark Armstrong, buyers need to be aware when purchasing a property that is managed by an owners’ corporation or body corporate that they are not just buying the title to the property. They should ensure they are also taking on additional responsibilities with the other joint owners in the building.

An owners’ corporation is made up of the owners of all the properties in the building or particular development.  This means that as an owner of a townhouse or apartment it’s important to understand your financial obligations and responsibilities to the other owners as each owner shares in the decision making process.

This will include making sure that the building is adequately insured and that maintenance, repairs and general improvements to the common property and grounds are undertaken.

Armstrong advised potential buyers to ensure that they have obtained a copy of the owners’ corporation certificate prior to signing the contract of sale.  This will reveal any plans for structural works or upgrades along with their estimated costs that are likely be incurred as a member of the owners’ corporation.

Source:

http://www.propertyobserver.com.au/residential/do-your-research-before-buying-a-property-within-a-residential-owners-corporation-mark-armstrong-ownerscorporation-bodycorporate/2013052161536