Hypotheticals by Manny Wood. Published in the Coffs Coast Advocate on 8 September 2018.
Anna and Joel wish to purchase a unit. They are advised to ensure that they have unconditional loan approval from their bank, in writing, before they exchange contracts.
They are also advised to obtain a strata records inspection report. When they receive the report, two things are of particular interest. Firstly, there are records indicating that there has been a problem with a tenant in one of the units relating to loud music and alleged drug use. Fortunately, the records also indicate that the tenant has since been evicted and there are no other incidents recorded in the past two years.
Secondly, there is an engineering report identifying concrete cancer. The Owners Corporation has recently organized for rectification work to be completed and has struck a special levy of $30,000 which has been paid by all of the unit holders.
After the works have been paid for, the capital works fund will have a balance of $20,000 to pay for other works. Anna and Joel are of the view that the owners corporation is in a reasonable financial position and decide to proceed with the purchase.
They are advised that as first home buyers, they are entitled to a full stamp duty exemption (as the purchase price is under $650,000) but they are not entitled to the first home buyer grant of $10,000 which is only available for new home purchases. They save $13,510 in stamp duty.
Anna and Joel’s solicitor goes through the contract with them carefully, including looking into the council zoning certificate and strata by-laws, before they pay a 10% deposit to the real estate agent and contracts are exchanged.
Anna and Joel get the keys in 28 days.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
