APARTMENT LIVING

APARTMENT LIVING: BUYING OFF THE PLAN

Buying an apartment “off the plan” is the most common way that apartments are purchased. It means that you are agreeing to purchase an apartment before it is constructed, with only the plans or artist representations showing what your finished product may look like. It is incredibly important that you receive independent legal advice about purchasing an apartment off the plan, before you exchange contracts. There are often clauses in off the plan contracts that allow for a developer to make changes to the size or configuration of your apartment, the amenities included in the building complex or the quality of the materials used, in the event that development approvals require the change. You should also make sure you are familiar with the expected construction start time and length, and what your rights are if the apartment takes longer to build than originally agreed to. BEFORE YOU SIGN ON THE DOTTED LINE, ASK THE DEVELOPER ( AND YOUR LAWYER ) THESE QUESTIONS: • The display unit and brochures look amazing! Am I entitled to receive all of that, and what happens if I don’t? • What am I actually buying? Are there detailed plans or only concept drawings? • Does my unit have fixed dimensions or is it subject to change? What are the limits of changes that a developer can make without my consent? • What are the developer’s rights and responsibilities (and what are mine)? • When do I have to pay a deposit, stamp duty, or other fees and charges? • What if the unit is not completed by the agreed date? Can the developer or I cancel the contract? Do I lose my deposit if I terminate the contract?

APARTMENT LIVING: NAVIGATING STRATA

The Carrington Street Residence, Independent Constructions

If you’re moving into an apartment complex for the first time, you have probably never had to deal with strata rules and bylaws. There are rules for managing apartments (known as unit titled buildings), and you should be aware of the financial and legal issues involved when you purchase an apartment. Whilst not an exhaustive list, here are some tips that will help you navigate strata if you are buying an apartment. It is also recommended that you obtain independent legal advice before you sign any contracts, so that you know exactly what your rights and obligations are. • You are essentially buying into a small community. Living in close proximity to other people can have a lot of positive benefits. However, it also means that your activities can impact on your neighbours (and the same goes for them). Most apartment complexes also have restrictions on car parking and carrying out renovations. • Apartment complexes have rules Before you purchase an apartment, read the owners corporation rules (and then re-read them). Rules can cover simple things such as not being permitted to hang towels over your balcony, through to visitor parking, lift access and the colour of your front door. • There can be hidden costs Buying an apartment can often seem like the cheaper option at the beginning but beware of strata fees that are payable on a regular basis. If your apartment complex has facilities such as lifts, gardens, basement carparking, pools, paved areas or barbecue spots (referred to as common property), there will be costs to maintain these items and you will be legally required to contribute to these costs through strata levies, set by the owners corporation. Each apartment complex also has a “sinking fund”, designed for capital maintenance and repairs. You should check the amount of the fund when purchasing an apartment and take into consideration the age of the complex and what significant maintenance work may be required in the future. There are clear benefits and downsides to purchasing an apartment and dealing with strata issues. The key is to make sure you are informed and aware of your rights and obligations before you’re locked into a contract.

BUILDING IN THE ACT –REQUIREMENTS

Manteena Residential, Architects Ring & Associates and The Dept of Design, Forrest

When building a home, it’s important to understand your requirements and responsibilities. There are some key things you need to do to ensure you remain compliant: • Make sure anyone working on your home has the correct licences and insurances to undertake the prescribed works • You will need to appoint a building certifier • Ensure any fees are paid on time • Check that development applications, building approvals and any other relevant approvals have been attained before commencing works It can be tricky to know who is responsible for each part of your project. Here is a handy, brief outline of who you can expect to work with throughout the process and what their role should be:

BUILDER

Your builder should be the person coordinating and leading your new home build or renovation. They will complete all work which requires building approvals, or engage and supervise specialised subcontractors to do the work.

ARCHITECT

Whether you choose to engage an architect, building designer or draftsperson, they will be responsible for the building plans and will provide you with valuable advice in the creation of your home.

BUILDING CERTIFIER

You will appoint a building certifier who will ensure the build is compliant with building legislation. The Building Certifier (also called building surveyors) works closely with the builder but is appointed by you.

ELECTRICIAN

Your electrician will complete all electrical works and upon completion, must provide you with a certificate of electrical safety that states their work is compliant with relevant standards.

PLUMBER

Your plumber will complete all plumbing works on your home and may be employed as a subcontractor by your builder or directly by you.

BUILDING ASSESSOR

A building assessor will provide you with an energy efficiency assessment rating, to ensure your home meets the required standards. You may also work with the following tradespeople: • Tilers • Bricklayers • Painters • Asbestos removalists • Plasterers

WHAT HAPPENS WHEN MY HOME IS COMPLETED? 1 The building certifier will conduct a final inspection. This is to ensure that the project is compliant with the building approval and legislative requirements. The inspection does not ordinarily cover off issues such as quality or contractual terms. Once the certifier is satisifed that your home complies with the approvals and the legislation, they will advise the ACT Government which enables you to apply for a Certificate of Occupancy and Use. 2 You or your builder will have engaged a licensed practitioner to complete electrical, plumbing and gas works. These works will need to be approved and may be inspected by an ACT Government inspector.

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