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For Clients receiving Reports Conducted on behalf of Morton Real Estate we note the following information:
§ The report was prepared at the request of the selling Agent with the
understanding the report may be made available to prospective purchasers for use as an informative document/tool only. Any queries related to the report/s should be directed to the agent referenced on page 2
§ Should a prospective purchaser wish to place reliance on the report a fee of $165
inc. GST is applicable. Please contact us via email or phone to organise such requests
§ All other disclaimers relating to reports by I & D Strata Searching remain
applicable to these reports
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STRATA SCHEME INSPECTION REPORT
DATE OF INSPECTION: 14 March 2018
PROPERTY: 19 / 60-‐70 William Street, Woolloomoloo
CLIENT: Morton Real Estate
CLIENT REFERENCE: Joshua Thomas
STRATA PLAN: 75152 'Paramount Apartments'
LOT/S: 19
DISCLAIMER
1 I & D Strata Searching (“I & D”) is the provider of this Report and the Client is the person/entity who has requested the Report. I & D is not liable to any other person who relies upon this report
to their detriment.
2 This Report has been provided specifically by I & D for the client and in relation to the specific property referred to in this Report. This Report is to assist the client to interpret and understand the Report and its limitations.
3 I & D has prepared this Report from extracts of books and records provided to it by the relevant officer of the companies, bodies, entities, owners/corporations, so far as was possible, and from conversations with the Managing Agent and/or the relevant officers of those bodies, entities, companies owners/corporations.
4 The Client is specifically directed to the possibility that all of the records provided to it by the relevant officer of the companies, bodies, entities, owners/corporations, may not have been made available for inspection, or may not have contained all of the information of interest to the Client or the client’s mortgagee.
5 No attempt was made during the course of inspection to ascertain whether any Managing Agent or the relevant officer of the companies, bodies, entities, owners/corporations, have complied with detailed accounting requirements of the Property, Stock and Business Agents Act 2002.
6 I & D is not liable for any costs,( including legal costs)loss or damage whether direct, indirect or consequential, arising or touching upon (i) any delay in supplying this Report (ii) any failure or omission to supply the Report (iii) any error or omission recorded or omitted from the records inspected by I & D. (iv) Any error or omission in this Report.
7 Warranties and conditions implied by Legislation or precedent for the provision of services, are excluded save as are implied by the Trade Practices Act 1974.
8 Any liability of I & D shall be limited to the cost of the supply of the relevant Report.
9 This limitation of liability extends to every employee officer and agent of I & D in the performance of any services relating to this Report.
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CONTENTS
STRATA INSPECTION SUMMARY ....................................................................................... page 4
STRATA ROLL ................................................................................................................... page 5
OWNER DETAILS .............................................................................................................. page 5
BY LAWS ...................................................................................................................... page 5
GENERAL INFORMATION ................................................................................................. page 6
EXECUTIVE COMMITTEE ..................................................................................…………….. page 6
MANAGING AGENT .......................................................................................................... page 6
INSURANCE / VALUATION ............................................................................................... page 7
BOOKS OF ACCOUNT ........................................................................................................ page 8
MAINTENANCE CONTRIBUTIONS & SPECIAL LEVIES ...............………………..……………………. page 8
ANNUAL FIRE SAFETY STATEMENT …………………………………………………………………………….. page 9
WORK HEALTH & SAFETY REPORT .................................................................................... page 9
10 YEAR CAPITAL WORKS REPORT …………………………………………………………………………………. page 9
ASBESTOS MANAGEMENT REPORT …………………………………………………………………………….. page 9
BUILDING DEFECTS UNDER HOME OWNERS WARRANTY ................................................ page 10
OTHER MAJOR REMEDIAL WORKS ………………………………………………………………………………. page 10
MINUTES OF MEETINGS ................................................................................................... page 11 -‐ 12
EXPENSE HISTORY ……………………………………………………………………………………………………….. page 13
OTHER IMPORTANT NOTES............................................................................................... page 14
ATTACHMENTS
LOT & FINANCIAL INFORMATION (Attachments)…………………………………………………... Refer attached
ADDITIONAL INFORMATION (Attachments) …………………………………………………. Refer attached
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1. STRATA INSPECTION SUMMARY
NOTE: Do not solely rely upon this summary page. The report is to be reviewed in its entirety.
1. Are any building defects or major remedial works noted? Refer page 10>
2. Insurance premium cost & due date? Paid by BMC Due;; 04.03.2018
3. (A) What are the approx. balances of the Administrative & Capital Works?
Administrative Fund: $ 66,473.25
Capital Works Fund: $ 531,931.66 Investment Fund: Included above (B) What are the current levy contributions per quarter for Lot 19?
Administrative Fund: $ 820.05 Capital Works Fund: $ 132.00 Other: N/A
4. When are levies paid up to (Lot 19)? 31 March 2018 5. What are the current arrears (Lot 19)? Nil Noted 6. Are there any current special levies? No 7. Possible special levies in the near future? No
8. When was the last Annual General Meeting held? 7 March 2017
9. Have there been any changes / additions to the By-laws in the last two Years? Yes - refer Minutes of Meeting
10. What is the unit entitlement for the subject Lot? 66 / 10,000
11. Were any Asset or Compliance Reports sighted? Yes – refer to page 9
12. Is the Strata Plan Part of a Community Association or Building Management Committee? Yes – refer to page 14
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2. STRATA ROLL
Was the Strata Roll in compliance with the following aspects of Part 10, Division 1 - Strata Schemes Management Regulation 2016? Yes From the entries on the Strata Roll, does the Initial Period appear to have expired? Yes
OWNER OF LOT 19
Name - Benjamin Paul Keen
Mortgagee - None noted Original Owner: Joypack Pty Ltd
OTHER ENTRIES
Number of Lots: 91 Number of Units: 91 Unit entitlement of subject Lot/s: 61 / 10,000 Strata Plan registered: 12 July 2005 Was the Original Certificate of Title for the common property sighted? No – only copy sighted
STRATA SCHEME BY LAWS
Do the records suggest that the By Laws have been changed or added in the Past two Year? Yes – refer to Minutes of Meetings
What is the attitude of the Owner’s Corporation
to the keeping of animals? Refer By-Laws for complex Is there any evidence of approval for animals being refused? No Is there any evidence of approval for animals? No Were any exclusive use by-laws registered in the past two years affecting the subject Lot? No
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3. GENERAL INFORMATION
STRATA COMMITTEE
Chairperson Nick Tizzone
Secretary Peter Buchanan Treasurer Robert Tait Executive Committee Refer to minutes attached dated - 7 March 2017
HARMONY
State of harmony within the scheme: No problems recorded
History of disputes: No problems recorded
List of disputes noted (if applicable)
Þ Nil noted
MANAGING AGENT DETAILS
Is there a Managing Agent? Yes
If so, name & telephone number- Name: Bright & Duggan Phone: (02) 9902 7100
Managers Name: Alex Borzilo
License No: 119232
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4. INSURANCES DETAILS
DETAILS OF BUILDING INSURANCE
Þ Sum Insured $ 62,800,000.00 Þ Insurance Company CHU Þ Policy Number 833690 Þ Due Date 04.03.2019 Þ Excess Refer to attached Þ Premium PAID BY BMC
DETAILS OF PUBLIC LIABILITY COVER
Þ Sum Insured $ 30,000,000.00 Þ Premium Included
ADDITIONAL INSURANCE COVER
Þ Voluntary Workers $ 200,000 / $2,000 Þ Loss of Rent $ 9,420,000.00 Þ Catastrophe $ 18,840,000.00 Þ Common Contents $ 400,000.00 Þ Office Bearers Liability $ 5,000,000.00 Þ Fidelity Guarantee $ 100,000.00 Þ Lot Owners Fixtures $ 250,000.00 Þ Government Audit Costs $ 25,000.00 Þ Health & Safety Breaches $ 100,000.00 Þ Legal Defence Expenses $ 50,000.00
INSURANCE COMPANY DETAILS
CHU Underwriting Agencies
Phone: 1300 – 361 – 263
INSURANCE BROKERS DETAILS
Not applicable
VALUATION DETAILS
Amount: $ 62,800,000.00 Conducted by: AG T Thomas Valuers Year: 17th January 2018
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5. BOOKS OF ACCOUNT
FINANCIAL ACCOUNTS
Þ Approximate balance of the Admin Fund? $ 66,473.25 Þ Approximate balance of the Capital Works Fund? $ 531,391.66 Þ Approximate balance of the Investment Fund? Included above Þ Funds are currently held in trust as follows:- Bank: Nil Noted Þ Are there any arrears noted for the complex Nil noted
MAINTENANCE / LEVY CONTRIBUTIONS
The records indicate that current standard contributions for Lot 19 are as follows :
Þ Administrative Fund per quarter: $ 820.05
Þ Capital Works Fund per quarter: $ 132.00
SPECIAL LEVY CONTRIBUTIONS
Details of current special levies are: Not applicable
Þ Date Determined Þ Fund Þ Amount Þ Due Date Þ Purpose Þ Amount paid by Lot 19 Þ Balance owing for Lot 19
APPROVED BUDGET Current Budget adopted (per annum) for the Strata Scheme effective - 1 October 2016
Þ Administrative Fund: $ 497,000.00 Þ Capital Works: $ 80,000.00
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6. COMPLIANCE
ANNUAL FIRE SAFETY STATEMENT (AFSS)
NOTE- Refer to the Environmental Planning and Assessment Act 1979 legislation and Regulations 2000 for
full details / explanation regarding the Legislative requirements relating to Fire Safety Measures.
Þ The Annual Fire Safety Statement (AFSS) for Strata Scheme is noted on file dated 10.05.2017 (copy attached)
WORK HEALTH & SAFETY (WH&S)
NOTE- Please refer to the Work Health and Safety Act 2011 for full details / explanation regarding the
Legislative requirements for ‘WH&S’
Þ Are any ‘WH&S’ Report/s or documentation/s sighted for the strata scheme? No
ASBESTOS REPORT / REGISTER & MANAGEMENT PLAN
NOTE- Please refer to the Work Health and Safety Act 2011 for full details / explanation regarding the
Legislative requirements relating to Asbestos materials.
Þ Are any Asbestos Report/s or documentation/s sighted for the strata scheme? No Þ
CAPITAL WORKS FUND FORECAST REPORT
NOTE: Please refer to Section 80 of the Strata Schemes Management Act 2015 for full details / explanation regarding the Legislative requirements relating to 10 Year Capital Works Fund requirements.
Þ Is a 10 Year Capital Works Fund Assessment Plan noted on file the strata scheme? Yes
Þ We attach extracts of a Sinking Fund Plan / Report for dated 01.10.2015 prepared by QIA Group Pty Ltd
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7. BUILDING DEFECT MATTERS
BUILDING DEFECTS UNDER HOME OWNERS WARRANTY (H.O.W)
Þ Were any evidence of any claims under the Home Owners Building Warranty Noted? No
MAJOR REMEDIAL WORKS NOT INCLUDING H.O.W
Þ Were any evidence of any other major remedial works for the strata scheme for the past 5 years excluding H.O.W Building Defects Claims? Ø Records indicate that major painting works were undertaken in 2016 totalling approx.
$168,000.00. No contract documents or quotes associated with the works were noted on file;; however we sighted & attach copies of paid invoices to CPR Group for the works including the final payment dated 11th July 2016.
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8. MINUTES OF MEETINGS – SUMMARY ONLY
Þ Sighted back to the AGM dated: 3 March 2010
Þ Date of most current Minutes sighted: 7 March 2017
Þ Date of First AGM (if noted): Not Noted
a. History of (past) special levies raised in the last five years? Nil
b. Are any meetings of the Owners Corporation scheduled in the near future? Attached is a Notice for an AGM to be held 21.3.2018, which includes a proposed reduction of the Budget & various By-Law Amendments
Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated 07.03.2017 refer attached: § The Following budgets are adopted per annum: Admin Fund $497,000.00 & Sinking Fund $80,000.00 § Auditor appointed § Executive Committee elected § Motions Defeated the following items;;- update Capital Works Funds, Window Safety Devices-Child Safety. § BMC Paramount Apartments representative elected § Current By Laws reviewed and consider any amendments. § Specially resolved to create By-Law Limit on Occupancy
Extraordinary General Meeting (EGM) dated 16.06.2014 refer attached: § Specially resolved to create By-Law pertaining to lot 33 - 'Works - Lot 33'
Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated 22.03.2016 refer attached: § The Following budgets are adopted per annum: Admin Fund $502,500.00 & Sinking Fund $55,000.00 § Auditor appointed § Executive Committee elected § BMC Paramount Apartments representative elected
Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated 24.03.2015 refer attached: § The Following budgets are adopted per annum: Admin Fund $525,000.00 & Sinking Fund $32,500.00 § Auditor appointed § Executive Committee elected § BMC Paramount Apartments representative elected
Extraordinary General Meeting (EGM) dated 11.6.2014: § Specially resolved to create By-Law pertaining to Lots 90 & 91 and the removal of a boundary wall
Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated 19.3.2014: § The Following budgets are adopted per annum: Admin Fund $502,500.00 & Sinking Fund $55,000.00 § Specially resolved to elect Robert Tail as the representative to the Paramount Apartments Building
Management Committee, being a member of Lot 1. § Child window safety devices: amended legislation reviewed. Building manager to commence investigation
to determine the Scheme’s compliance to this and obtain the required certification or recommendations for compliance purposes.
§ Specially resolved to create By-Law pertaining to smoking
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8. MINUTES OF MEETINGS – SUMMARY ONLY
Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated 26.3.2013: § The Following budgets are adopted per annum: Admin Fund $444,100.00 & Sinking Fund $100,000.00 § No major issues noted Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated 14.3.2012: § The Following budgets are adopted per annum: Admin Fund $442,000.00 & Sinking Fund $110,000.00 § In accordance with the Strata Management Legislation Amendment Bill 2008, Schedule 1, Part 4, Nick
Tizzone (Executive Committee) made a disclosure to the meeting that he is an employee of Joypack Pty Ltd
Extraordinary General Meeting (EGM) dated 25.7.2011: § Specially resolved to create By-Law pertaining to compliance with Planning Law and other requirements
Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated 16.3.2011: § The Following budgets are adopted per annum: Admin Fund $489,748.00 & Sinking Fund $75,000.00 § Auditor appointed § Resolved to renew Managing Agent agreement with Bright & Duggan Pty Ltd § Resolved to obtain Sinking Fund Forecast updated § Resolved that the End of Warranty inspection not be carried out on the building for provision of a Home
Owner Warranty Defects Report § Noted that the end of the warranty will expire on 27.5.2012 § Nick Tizzone (Joypack Pty Ltd – original builder/developer) abstained from voting on this motion § Noted that if owner has observed any defects, internally or externally, a form is to be filled out and
provided to the Building Manager no later than 30.6.2011. The executive Committee will then review all notification and determine the next course of action.
§ Inspections can be carried out by the Individual Owners Consultant and all notifications must be submitted to the building manager or the strata managing agent no later than 27.5.2012.
Annual General Meeting/Executive Committee Meeting (AGM/ECM) dated 3.3.2010: § The Following budgets are adopted per annum: Admin Fund $490,000.00 & Sinking Fund $75,000.00 § Auditor appointed § Specially resolved to create By-Law pertaining to the conduct of Lessees and others § No major issues noted
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9. EXPENDITURE HISTORY – SUMMARY OF MAJOR EXPENSES ONLY: Expenditure for period – 1st October 2017 to 14th March 2018
Þ Refer attached statement
Expenditure for period - Year Ending 30th September 2017
Þ Refer attached statement Expenditure for period - Year Ending 30th September 2016
Þ Refer attached statement Expenditure for period - Year Ending 30th September 2015
Þ Refer attached statement Expenditure for period - Year Ending 30th September 2014
Þ Refer attached statement
Expenditure for period - Year Ending 30th September 2013
Þ Refer attached statement
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10. OTHER IMPORTANT NOTES: Þ No search has been made of these or any other agreements that may have been entered into by the Owners’
Corporation. Þ We found no evidence of any current or proposed litigation involving the Owners’ Corporation. Þ From the records provided for our inspection we did not note any apparent Notices or Orders which adversely
affect either the Owners Corporation or the subject Lot. Þ Attached is correspondence/advice dated 21.8.2017 from Turnbull Bowles Lawyers being By-Law review Þ The Strata Scheme SP75152 is part of a Building Management Community (BMC) no. DP1084085 also known as
Paramount Apartments to which it pays a regular contribution. We note that only the records for SP75125 have been inspected, and should an inspection of the BMC records be required and additional fee would need to be negotiated.
