Property owners in a strata title building must purchase an insurance policy to protect the property and their investment. A strata building bond is a form of insurance that protects the owner's right to occupy the unit. It provides coverage for events such as accidental damage and theft under certain circumstances.
When it comes to buying a property, one of the most important factors is the security that the property will be safe and secure. This is where strata premises bond and assessments strategy comes in, as they provide the buyer with peace of mind in terms of their investment. What is a strata-building bond? A strata building bond is simply a loan that is given to a property owner by their strata corporation in order to finance the cost of repairs or replacements that need to be made to their unit.
Image Source: Google
How do strata building inspection schemes work?
A strata building bond is a financial guarantee that a particular property owner will reimburse the strata corporation for any repairs or replacements made to the common property inside the strata complex. This type of insurance is usually required by law, and it helps protect the strata corporation from potential financial losses in the event that a specific owner fails to meet its obligations.
Typically, a strata building bond is issued in conjunction with an inspection scheme. This scheme requires all owners of units in a particular strata complex to have their properties inspected at least once every three years. If any of these inspections reveal any issues with the property, then the owner is required to pay for the cost of the inspection and any necessary repairs.
If you are thinking about issuing a strata building bond or implementing an inspection scheme, be sure to consult with your local strata council or legal counsel. They can provide you with all of the information you need to make informed decisions about your business.