Developers are being caught out by consultants using estimates in strata budgets for the Sinking Fund or capital components.
In the world of strata the Sinking Fund Report can be prepared in an off the plan format, the data used to incorporate into the disclosed budgets and ultimately adopted at the first meeting of the new scheme. This simple strategy will ensure no gaps between the report and the budget adopted at the first meeting.
Trying to save $$$ by putting off the report until registration of a new scheme puts the Developer in a risk position – what happens if the report comes back substantially higher ? Redisclosing a higher budget to purchasers could trigger a material prejudice argument to escape contracts.
Keep ahead of the game!! Contact our team on 5504 2015 or firstname.lastname@example.org for a one hour review on how you can minimise risk in your project.