STRATA TITLE SURVEYS – STRATA SUBDIVISIONS

A stratum living is an increasingly popular form of land tenure and research findings indicate a higher level of inquiry in this area. Practitioners report the value of discussions with clients concerning the pros and cons of strata tenure versus single lot tenure. Often consultations lead to one or two forms of development:

SURVEY STRATA

The procedures for title creation under the Strata Titles Act by means of a Survey Strata are very similar to those required by the green title process. Practitioners report that generally they negotiate a fee in accordance with the guidelines for subdivision for 2 to 10 lots.

BUILDING STRATA – RESIDENTIAL DWELLINGS

The scope of works fee for building strata of up to 5 lots includes:

·          Client liaison

·          Title Search

·          Survey plan search

·          Cadastral alignment search

·          Measurement of the buildings

·          Connection to the cadastre

·          Preparation of the strata plans

·          Preparation and lodgement of field book

·          Examination of documents

·          Arrangement for Valuer (Unit Entitlement)

·          Local government certification

·          Lodgment of the final documentation

·          Forwarding strata plan number to client

In this increasingly complex area, Practitioners report that fees are negotiated from an $1800 base charge, plus $200 per lot, rising with the complexity. Third party fees and charges are treated in the usual manner. Research findings indicate that in complex developments, Practitioners are reporting a higher need for professional work at a negotiated rate. Some Practitioners said they could not overstate the need for clear and recorded Clients and Practitioner communication as the complexities arose.

It is now common practise (and highly recommended) that all strata plans be accompanied with a management statement. Practitioners report that if they prepare the management statement, charges should be additional to those above and at hourly rates.

Practitioners report that they often seek to pass savings on to their Clients by the following actions: Should a Client require a feature and level survey as one site visit, followed by a further site visit to remark the lot and setout the building and this then followed by a final site visit to locate the finished buildings and improvements. Research findings indicate that a saving of 10 – 15 % is often passed to the Client.

BUILDING STRATA – INDUSTRIAL/COMMERCIAL

Research findings suggest because of the increased complexity and liability, Practitioners are required to input significantly more time to accommodate and account for the increases liability. Accordingly Practitioners report the negotiation of fees 60% above those in the residential sector. Practitioners further report their ongoing advice to clients that a lodged field book detailing the cadastral connections as well as a management statement should always accompany this type of strata. Disbursements and third party costs are handled in the usual manner.

BUILDING STRATA – MERGER/CONVERSION

It is evident from this research that this particular strata survey is similar in nature to the normal Building Strata or Survey Strata: however, the Practitioners report that as the Licensed Surveyor acts under increased responsibility they are usually required to offer expert advice on available options and procedures that must be followed. Research findings indicate that Practitioners generally seek to negotiate a fee loading of 20% (above building strata).

It is evident from this research the Licensed Surveyors acting in a subcontract situation are paying particular attention to the Client’s instruction to ensure compliance with the act and regulations.