QUESTIONS TO ASK

WHY IMPORTANT?

What is the unit number and what is the physical address of the property

It is important that your description is correct in the sale agreement

Has the Developer reserved a right to extend the scheme?

If the Developer or the Body Corporate has reserved the right to extend the scheme this must be disclosed in the sale agreement.

If a right has been reserved and it is not disclosed then the purchaser can cancel the sale without suffering any consequences.

Does the Unit have an exclusive use area attached to it?

If there is an exclusive use area then has it been allocated in terms of the rules or alternatively by way of notarial deed?

You must differentiate between an actual legal exclusive use area and an area which your seller is simply using by consent (If the seller simply uses an area by consent then this could be revoked at any time and may cause issues for your purchaser in the future).

What Management and Conduct Rules are in place in the scheme?

It is important to determine if any amendments have been made to the standard management and conduct rules as prescribed in the Regulations.

There is a possibility that the rules in place will render a unit unsuitable for your proposed purchaser, and this needs to be determined upfront.

Is there a special levy in place or being contemplated by the Body Corporate?

Any special levy imposed prior to the date of sale is for the seller’s account, whilst any special levy imposed after the date of sale (even if prior to registration of transfer) is for the purchaser’s account.

Has the Seller carried out any renovations to the property which increased the property’s footprint?

If the seller has done renovations to the property which have resulted in the unit being extended, then you must determine if there are approved building plans and that an amending sectional plan of extension has been registered (in our experience the second aspect of this is often overlooked ie. sellers have approved building plans but do not register the amending sectional plan of extension).