When purchasing sites under an existing Building Management Statement (BMS) arrangement it is important to request the expected outgoings (and evidence thereof) prior to purchasing.
A recent client purchased a site under a BMS arrangement. When time came to deliver contracts to sign up purchasers and secure funding the outgoings for the site were investigated and revealed to be over $100,000 per annum.
The BMS contributions were updated with the feasibility Body Corporate budget, it became apparent that the future outgoings for owners were exceptionally high due to the BMS expense.
Take time early, obtain outgoings and seek strata consulting due diligence to ensure any pitfalls such as the above for the site are dealt with early.
For other simple protection techniques and feasibility drafting contact our Developer Consulting Team on firstname.lastname@example.org or 55042015 for consulting on your project – we have strategies and processes that can identify challenges early.