Strata Certificates Advantages

Strata Certificates can be issued by either Council or a private accredited certifier. Discuss the advantage, options with regards to developer and purchasers.

 

Strata Certificates are issued pursuant to the Strata Schemes (Freehold Development) Act 1973. The issue of a strata certificate by a local council is governed by Sec 37, while the issue of the strata certificate by an accredited certifier is governed by Sec 37A.

The issue of the strata certificate allows a strata plan to be lodged at the Land Titles Office for registration. Certificates of Titles will then issue for the strata lots.

Accredited certifiers achieve their certification from the Building Professionals Board pursuant to the Building Professionals Act 2005.

Accredited certifiers are deemed to be “public officials” under the ICAC legislation. Therefore, developers, builders and land owners who request a strata certificate from an accredited certifier are treated as applicants. At all times, the client of the accredited certifier is the Public of NSW.

In many cases, but not all, the fees for the issue of a strata certificate differ between council and the accredited certifier. In many cases council’s fees are cheaper. However in some cases (eg, Blacktown, Baulkham Hills, Botany, Campbelltown, Kogarah, Marrickville, Pittwater, Randwick, Ryde, Mosman, Sydney City, Waverley, Woollahra), the council fees are more than an accredited certifier.

In most cases, the time required for a strata certificate to be issued will be less when issued by an accredited certifier. This is because only one person is involved, ie, the certifier examines the development consent, the plans, the accompanying documents, and makes the site inspection. If there are there any outstanding issued they will be communicated to the applicant immediately. Once everything is in order, then the certifier will sign and issue the strata certificate. Generally this can take place in less than 5 days.

However, under most council’s procedures, the issuing of a strata certificate can involve a number of departments signing off on elements (eg engineering, building, planning etc) before it is finally put forward to an authorised person to issue the strata certificate. In most cases this procedure can take between 4 – 6 weeks.

This difference in time can have a significant impact upon developers and purchasers. At the end of a project, the developers have their greatest exposure to financial holding charges, and it is not uncommon for medium to large projects to have the charges ticking over at $1,000 a day.

Delays in issuing of titles can also affect purchasers.

I hope this is of assistance,

Gordon Wren
Accredited Certifier – Subdivision & Strata
Accred No. BPB0447