Strata Reports: What to Check Before Buying an Apartment in NSW

Reviewed by Brenda Gately, Licensed Conveyancer (NSW Licence No. 05006556, AIC member) — 36 years' experience.

A strata report is an inspection of the owners corporation's records for the building you are buying into — its finances, levies, capital works plan, insurance, by-laws, disputes and any special levies coming. NSW law does not require you to obtain one, and does not require the vendor to provide one. It is the single most useful discretionary spend in an apartment purchase, because it is the only way to see what the building will cost you after settlement.

Statutory position last reviewed 13 September 2026.

When you buy an apartment you are buying two things: a lot, and a share in a corporation that owns and maintains everything around it. The contract tells you about the first. Only the strata records tell you about the second.

What your conveyancer does, and what a strata inspection does

These are different pieces of work, and firms blur them often enough that it is worth stating plainly.

Your conveyancer reviews the contract and the strata documents attached to it. Under the Conveyancing (Sale of Land) Regulation 2022, a contract for a lot in a strata scheme must include prescribed documents — the dealings and instruments registered against the common property that create interests burdening or benefiting it, and for a proposed scheme, the draft by-laws. We read those, along with everything else in the contract.

A strata inspection examines the owners corporation's own records — minutes, financial statements, the capital works fund, correspondence, disputes, defect history. That is a physical (or electronic) inspection of the books, usually done by a specialist strata inspector, and it is where the expensive surprises live.

The contract documents will not tell you that the building is arguing with its original builder about waterproofing, or that a $40,000 special levy was discussed at the last AGM. The records will.

Who is actually allowed to inspect

Here is a detail most buyers never learn. Under section 182 of the Strata Schemes Management Act 2015, the right to inspect an owners corporation's records belongs to an owner, a mortgagee or covenant chargee of a lot, or a person authorised by one of them.

A prospective purchaser has no standing in their own right. In practice, your strata inspector attends under written authority from the vendor, which the vendor's agent arranges. Inspection is by written notice to the owners corporation, with the prescribed fee.

The practical consequence: if a vendor is slow to authorise an inspection, or will not, that is information in itself. Raise it immediately rather than letting your cooling-off period run down.

What a strata report should tell you

• The administrative and capital works funds. A capital works fund with very little in it means future costs land on owners as special levies — on you, once you own the lot.
• The 10-year capital works plan. What major work is scheduled and whether it is funded.
• Current levies and any arrears. Both for your lot and across the scheme. Widespread arrears signal a building that struggles to fund maintenance.
• Special levies. Struck, proposed or discussed. This is the single biggest financial risk in an apartment purchase.
• Defects and disputes. Building defect claims, litigation, disputes with the builder or between owners.
• Insurance. Whether the building is adequately insured and whether premiums have spiked — often a sign of claims history.
• By-laws. Pets, short-term letting, renovations, parking, noise. These bind you.
• Minutes. Often the most revealing part — how the building is run, and what owners are actually worried about.

The section 184 certificate

A section 184 certificate is issued by the owners corporation and sets out financial and related matters for a particular lot — levies payable, arrears, and similar.

You are not legally required to obtain one, although most NSW contracts of sale require the vendor to provide it. It is a useful snapshot of the lot's financial position, but it is narrower than a full inspection: it tells you what is owing, not what the building is arguing about or what is coming.

Treat the 184 certificate and a strata inspection report as complements, not alternatives.

Warning signs in a strata report

• A capital works fund that is small relative to the size and age of the building.
• Recent or foreshadowed special levies.
• Active building defect litigation, particularly in buildings under about ten years old.
• Sharply rising insurance premiums, or difficulty obtaining cover.
• High levy arrears across many lots.
• Minutes that read as dysfunction — unresolved disputes, repeated failures to reach quorum.
• By-laws inconsistent with how you intend to live there.

None of these necessarily means walk away. They mean you are negotiating with better information than the other bidders.

When to get the report

Before you sign, if you can. If you have already exchanged, then immediately — within your five business day cooling-off period, which is also when your building inspection and finance need to be resolved. See our guide to the cooling-off period.

At auction there is no cooling-off period at all, so the strata report must be obtained before you bid.

Whichever route you are taking, the contract review should happen alongside it — the two together give you the full picture.

Selling an apartment?

The same records a buyer inspects are the ones that will be read about your building. Preparing well — and getting the contract and vendor disclosure right at the outset — avoids delays later. See our guide on whether you need a conveyancer for selling property in NSW.

Getting help

Sydney is an apartment market, and strata is most of what we read. We will review the contract and the strata documents attached to it, tell you what the inspection report actually means, and flag what is worth negotiating. If you want a Sydney conveyancer who deals with strata every week, get in touch before you sign.

Request a Free Quote or call (02) 8815 8148.

Frequently asked questions

Is a strata report required by law in NSW?

No. There is no statutory requirement for a purchaser to obtain a strata report or for a vendor to provide one. It is market practice, and often a contractual requirement, because it is the only way to see the building's finances and history.

Can I inspect the strata records myself before I buy?

Not in your own right. Under s182 of the Strata Schemes Management Act 2015 the inspection right belongs to an owner, mortgagee or covenant chargee, or someone they authorise — so your inspector attends under the vendor's written authority.

What is the difference between a strata report and a section 184 certificate?

The 184 certificate is issued by the owners corporation and covers financial matters for a particular lot, such as levies and arrears. A strata inspection report examines the owners corporation's full records — minutes, funds, defects, disputes and insurance.

Does my conveyancer do the strata inspection?

No. We review the contract and the strata documents attached to it; a specialist strata inspector examines the owners corporation's records. Both matter, and we will explain what the inspection report means for your purchase.

What is the biggest risk in buying an apartment?

An underfunded capital works fund combined with major work ahead — that combination arrives as a special levy after you own the lot. It is exactly what a strata report is for.

Do I need a strata report before bidding at auction?

Yes. There is no cooling-off period at auction, so everything — strata report, finance and contract review — must be done before you bid.