If you are buying into an older block of apartments, you are entitled to review the minutes of the Body Corporate meetings and AGMs upon obtaining the authority of the vendor. By doing so, you are looking to satisfy yourself there are no hidden problems or issue which you may otherwise be unaware. Among the things to look for in the minutes include:
Frequency of meetings and issues discussed. Depending on the Executive committee, which are appointed by the owners’ corporation to manage the running of the building, meetings should be held as least 2 – 4 times a year, apart from the AGM. Typical issues discussed should include the state of repair of the building, the administration costs, sinking fund and its adequacy, complaints and problems which may arise and how these problems are being resolved.
For newer buildings, one should look to ascertain how defects are being resolved. The developer is required to fix and repair defects on the building which arise within the first 7 years.
The sinking fund is an important element of maintenance of the building to ensure any works required in the future are adequately provided for.
Other handy tips may include talking to occupants of the building to find out if there are any issue or problems associated with the building such as nagging and recurring repairs and the effectiveness of the Body Corporate in resolving these issues. Be aware of whether you are speaking to an owner or a tenant as both will have different perspectives in their views.