Whether it is a boutique set of suburban town homes or a multi-storey mixed use inner-city high rise, most projects will need the ability to get to the market quickly and secure pre-sales before moving to the construction phase.
And the quickest way to secure pre-sales in a Strata Title Development is to finalise your contract disclosure statement as soon as possible.
First step, assemble your team:
- Solicitor – a solicitor experienced in Strata Title development will be able to quickly identify the disclosure issues for a particular development and make sure the team is focused on delivering the correct information
- Surveyor – depending on the complexity of the project, an experienced surveyor will be able to produce a titling schedule and accurate plans in the correct format whether that is Volumetric title, Building format title or Standard format title
- Body Corporate consultant – a knowledgeable strata consultant offers a comprehensive service encompassing all legislative requirements, titling structure and advice on the effects of certain facilities and service contractor agreements, as well as the ability to accurately represent budgets and individual lot entitlements to the purchasers through the disclosure document
These three specialists bring together the elements required for producing an accurate disclosure document and ensuring you’re ready to go to market with a contract, not merely an expression of interest, which means your sales team can get to work on building the required pre-sales which, is a vital part of moving your project to the next phase.
Second step – Finalise the documentation so consultants can work out a schedule of levies and other required disclosure information. These documents will include:
- A finalised DA
- Survey plans which show what lots are being created, along with the individual areas of those lots and common property.
- The market value for the lots to enable the calculation of the Interest entitlements
- Community Management Statement (CMS) containing by-laws
The third step is to finalise agreements for the site that are required to be signed at registration. It is typical that these agreements would be for a period longer than 12 months. They may include:
- Bulk utilities
- Letting and caretaking arrangements
- Service contractors agreements (BC Manager)
- Stormwater treatment devices
- Building Management Statement (BMS)
- Any other agreement for a period longer than 12 months that incurs a cost to the Body Corporate
The fourth step is finalise disclosure document information such as:
- Schedule of finish for the lots
- Sunset date for termination of contracts
- Power of attorney rights for the original owner
- A list of Body Corporate assets being gifted by the original owner.
Depending on the size of the project, we advise scheduling a meeting of your key consultants be held at the time the DA is approved and all members of the consulting team have been finalised.
The final tip is to always start with the end in mind. SSKB Developer Consulting recommends starting with the date you want to take the property to market and work backwards. Again, depending on the size of your development, you may need to engage your contract disclosure team anywhere from two to six months out from your intended marketing date. It looks like a big job – and it is – but experienced strata titling consultants will make the process seamless.