Thursday, October 1, 2020

Getting a Section 184 Certificate

What is a Section 184 Certificate?

Before buying into a strata scheme, it is vital to find out as much information as possible about the management of the scheme and the lot itself.

A section 184 certificate (formally a section 109 certificate) is a document that outlines the general health of a building’s owners corporation and also shows outstanding levies on a given lot. It’s primarily use is for the purposes of determining any adjustments (for monies prepaid or owing) that should be made to the settlement figure.

A Section 184 certificate will give information about the strata scheme including:

  • the names and addresses of the strata committee members, the managing agent and building manager (if applicable)
  • the levies to be paid by the owners
  • any outstanding levies
  • any outstanding levies for the owner of the lot you are interested in
  • the proposals for funding the matters set out in the 10-year capital works plan
  • the address where the records and financial statements can be viewed
  • any special by-laws made by the owners corporation in the past 2 years
  • whether or not a strata renewal committee has been established in relation to the strata scheme under the Strata Schemes Development Act 2015.

The certificate is typically requested by a prospective purchaser’s conveyor or solicitor but it can be requested at any time.

Unlike the information contained in a Strata Report that you may purchase prior to purchasing a unit, the information contained in the Section 184 Certificate is prepared by the Owners Corporation and signed under their Common Seal.

Getting a Section 184 Certificate

If you are an owner, or you have an owner’s, mortgagee’s or covenant chargee’s written permission, you may write to the owners corporation and ask for a section 184 certificate. A member of the strata committee or the strata managing agent must give the certificate under the owners corporation seal. The certificate must be on the set form used in the Strata Schemes Management Regulation 2016 – Schedule 1. There is a fee payable.

If a levy is outstanding before the certificate is given and it is not shown on the certificate, the purchaser is not responsible for the payment.

© State of New South Wales (NSW Fair Trading). For current information go to fairtrading.gov.au

Strataville Editorial
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