The Section 184 Certificate: A Vital Factor for Strata Property
When considering the purchase of a strata property in NSW, it's essential to thoroughly navigate the complexities of the process, ensuring that all necessary information is obtained.
One vital document to familiarise yourself with in this process, is the Section 184 Certificate. In this article, we'll look at what Section 184 Certificates are, their significance, and how they relate to the purchasing of strata properties (and strata property owners, as well as owners' corporations).
What is a Section 184 Certificate?
A Section 184 Certificate, as outlined in the Strata Schemes Management Act 2015, is an official document issued by the owners' corporation or strata manager of a strata scheme. It provides critical information about the financial, managerial, and administrative status of the strata property.
This certificate is a legal requirement and serves to protect the interests of potential buyers.
Why are Section 184 Certificates Important?
Financial Insight
A Section 184 Certificate discloses vital financial information, including details about the current levies, sinking funds, outstanding contributions, and any planned special levies. This information helps buyers assess the financial health of the strata scheme and make informed decisions throughout the complex process.
Legal Obligations
According to the Strata Schemes Management Act 2015, the seller is obligated to provide a Section 184 Certificate to the purchaser. Failing to obtain this certificate can result in legal complications and potential financial liabilities.
Maintenance and Repair Obligations
The certificate also provides information on any known outstanding maintenance or repair issues within the strata property. This insight allows potential buyers to assess the potential costs and responsibilities associated with these matters and consider the impact that these things may have on timelines, schedules and other related factors.
3 Tips for Engaging with the Strata Purchase Process
If you're considering the purchase of a strata property, you can use the 3 tips below to help investigate the opportunity accurately:
- Engage Professional Assistance:
Seek the expertise of a reputable strata lawyer or conveyancer who specialises in strata property transactions. They can save you hours of time and guide you through the legalities and interpretation of the Section 184 Certificate. -
Review the Certificate Thoroughly:
Carefully review the Section 184 Certificate, paying close attention to financial information, levies, special levies, and outstanding contributions. Seek clarification if any aspects appear unclear or require further explanation. -
Consider Strata Property Reports:
In addition to requesting and receiving a Section 184 Certificate, consider obtaining strata inspection reports. They should provide a comprehensive overview of the property's maintenance, insurance, and compliance history. These reports offer further insights into the property's condition and will assist you with decision making.
For a seamless experience with obtaining and engaging Section 184 Certificates, AscendCorp Strata is your trusted partner. With our deep expertise in strata management and our thorough understanding of legal and compliance requirements, we can help ensure a smooth and simple process, while providing comprehensive assistance.
If you'd like to request a Section 184 Certificate, we've made this process super simple. Simply jump on to our forms page (you can find this under the "contact us" button at the top of this page), and submit the "request section 184 Certificate" form. Alternatively, you can request a quote, check out our Strata Management solutions, or even learn more about our facilities management. If you'd just like to get in touch (or have a coffee!), then reach out using the button below.
Please Note: The sources consulted for this content include the Strata Schemes Management Act 2015 (https://legislation.nsw.gov.au/view/html/inforce/current/act-2015-050) and internal knowledge of best practices in strata property transactions.