As we have been involved in setting up a number of new developments all over Queensland we know the questions you have.
See the answers to some of the frequently asked questions below-
How much will it cost for SMG to setup my scheme?
Strata Management Group is happy to assist with the setup of any strata scheme FREE OF CHARGE.
This includes liaising with all Solicitors, Architects, Surveyors, Builders and Developers.
We ask that at the first meeting of the Body Corporate where the Developer still owns all lots that our office be appointed for a 3 year term.
What does the SMG Developers Proposal Pack include?
We have designed a specific proposal pack for Developers that outlines the full process required to be followed to successfully setup a strata scheme.
This pack includes an outline of our company and who we are, examples of schemes we have assisted establishing in the past and copies of proposed budgets so you will know exactly what to expect to receive from our office should you appoint us to complete the job.
What is the process?
Most Developers prefer to sell off the plan as such the majority of the work is done prior to the first turn of soil.
All Body Corporate documentation is required to be disclosed to perspective purchasers within the sales contracts. Sales cannot commence without a Disclosure Statement.
Disclosure Statements include-
- All plans including Survey, Exclusive Use and Service Location Diagrams;
- Proposed Administration & Sinking Fund Budgets
- Completed Community Management Statement including Entitlements for each lot
- All agreements required to be entered into the Body Corporate including Body Corporate Manager, Caretaking and Letting, Bulk Electricity, Waste removal etc
In order to setup a Body Corporate the below general process is usually followed-
1. DA is sought from Council
2. DA is granted;
3. Engagement of the required team- Solicitor, Surveyor & Body Corporate Manager
4. All documentation required for Off The Plan Sales Contracts is arranged
5. Building works commence
6. Practical Completion is received
7. Body Corporate Manager seeks quotations for insurance cover for the scheme on your behalf and places cover. The Developer is responsible to pay for the first years insurance.
8. The Community Management Statement is registered at Titles Office
9. The Body Corporate holds the First Extraordinary General Meeting (At this meeting the Developer is the only owner of all lots and approves all documentation as disclosed to perspective purchasers in the Disclosure Statements). The Developer is also required to provide the Body Corporate with all plans and development documentation including Certificate of Classifications, keys, instruction manuals etc.
A Sinking Fund Forecast and Insurance Valuation also is required to be repented to the body Corporate at this meeting from the Developer. We are happy to arrange these documents on your behalf.
10. Settlements take place as per Off The Plan sales
Depending on the size of the development the time it takes to complete the above list can be anywhere from 18 months to 3 years.
Once our office has been engaged as the Body Corporate Managers we immediately get started on working with you to get a full understanding of the scheme. The more we understand the scheme the easier it is for our office to put together a practical and accurate budget. It is important that the budgets set are not only marketable for you during the sales process but are also realistic for the eventual lot owners.
Exactly how can you help?
The setup of a strata scheme can be quite a daunting to task for someone who does not understand the Body Corporate and Community Management Act. Our aim is to make the experience as easy as possible for you.
We are available to assist with organising all reports required to be provided by the Developer, organise insurance cover for the scheme once the builders cover lapses, hold required all required meetings including the first Extraordinary General Meeting and Annual General Meeting.
You will also benefit from knowing that when you have sold all unit at the complex your purchasers will be looked after by a competent Body Corporate Manager.
What experience does Strata Management Group have?
The Business Development team at Strata Management Group have worked with some of Australias leading Developers.
We have assisted with the setup of small duplexes through to large multi-layered schemes.
Our office has received some great feedback and encourage you to read some of the testimonials other developers have written about our service delivery.
What ever the size of your scheme and what ever the time frame we are available to assist you with your product now!
When do we need to start talking?
The sooner you contact our office the better.
Our team is dedicated to fully understanding your product and requirements. Even if you are only thinking about creating a multi-unit development and Development Approval is yet to be received from Council our team is here to help and walk you through the process.
What team do I need to put together to get things happening?
To effectively setup a new strata titled scheme we suggest that you put the following team together as a minimum.
Body Corporate Manager- to provide proposed Administration and Sinking Fund budgets for your first year;
Surveyor- to provide your survey plans, exclusive use plans and service location diagrams;
Solicitor- to draft your First Community Management Statement and sales documentation.
Strata Management Group has the ability to manage and liaise with your team to ensure that all deadlines are met for the roll out of your product.
What are Caretaking and Letting Agreements and do I need them?
Depending on the size of your proposed development you may want to consider investigating the possibility of creating and selling the management rights for the scheme.
The management rights for the scheme can consist of the Caretaking and Letting Agreements.
Caretaking Agreement- indicates the required duties the Caretaker is required to complete around the complex on a daily, weekly, monthly rate. I.e. Opening the pool gate at 6am every morning.
Letting Agreement- provides the Caretaker of the scheme the ability to conduct a letting business from the scheme.
The arrangement of this documentation is not required for all schemes.
An alternative to the above is the engagement of a Facilities Manger.
What happens with regards to insuring my scheme?
As the Original Owner you are required to insure the building for the first year. Our office can assist you with ensuring that you achieve the best possible premium.