If you are buying an apartment, town house or Unit in SA (aka Community Title or Strata Unit) , the building and common property insurance is held by the Community Corporation. Part of your Strata Levy goes towards paying for it. Each owner is responsible for their own contents insurance including fittings. If you are a landlord you should have Landlord’s Insurance as well as insurance to cover your fixtures and fittings internally.
A Community Title property differs slightly in that an owner is usually responsible for both Building and Contents insurance. The Community Corporation takes care of the Common Property Insurance, and your levies will pay for it. Depending on the kind of Community Corporation you are purchasing you may also be required to have Third Party Property, Bodily and Public Risk Insurance.
Many of the By-Laws which govern Strata and Community Corporations are standard. For example, each lot owner has the right to quiet enjoyment of their lot without interference from other lot owners or their visitors. It is the Corporation which administers these rules. Some different by-laws which we have come across for specific Corporations are: washing cannot be hung out on balconies, bicycles cannot be stored on balconies, arrangements must be made with the Corporation when moving furniture in and out of the lot, and if a lot owner wants to change the floor coverings in their property they must seek approval of the Corporation. If you are a landlord you must give a copy of the by-laws to tenants as they are bound by them also. It is a good idea to go through by-laws carefully so you know what you can and can’t do.
At McKay Business Services, we read through all the documents pertaining to Strata and Community Properties carefully. We will inform you of the rules of the Corporation and note anything we think you should know in addition to that.