Buying an apartment in NSW means buying into a company you don’t control. The owners corporation owns the common property, sets your levies, insures the building and decides when the roof gets fixed. A strata report is how you find out what that company is like before you sign.
A good report costs a few hundred dollars. It can save you from a building with defects, an empty capital works fund and a special levy notice waiting in next month’s mail. This guide explains what to ask for, what each section of the report tells you, and the warning signs that should make you slow down.
What a strata report is
A strata report, sometimes called a strata search or strata inspection report, is a summary of the owners corporation’s records, prepared by a specialist inspector who reviews the books on your behalf. It is not a building inspection. The inspector looks at paperwork, not concrete.
In NSW, anyone with a written interest in a lot, including a prospective buyer with the owner’s authority, can inspect the owners corporation’s records. The strata manager can charge a fee. Under the current regulation, that fee is $60 for the first hour and $30 for each extra half hour. Inspectors usually include this in their price.
You can do the inspection yourself, but most buyers use a strata inspector. They know where to look and what is missing.
The section 184 certificate
Before you look at the full records, ask the selling agent for the section 184 certificate. This is the owners corporation’s official certificate about a lot, issued under the Strata Schemes Management Act 2015. It sets out the levies payable, any unpaid amounts and the fund balances. It is the owners corporation’s formal statement of the amounts owing on the date it was issued, so check every figure.
The certificate became more useful on 1 April 2026. According to the NSW Government’s guide to strata law changes, it must now include:
- details of any embedded network in the building, such as a shared electricity, hot water or gas supply run by a private operator;
- any compliance action taken against the owners corporation by NSW Fair Trading or the Building Commission;
- details of meetings held.
If the certificate says there is a building work order or a Fair Trading compliance notice, treat that as the first item to investigate.
What a strata report covers, section by section
1. Levies and arrears
The report will show the quarterly levies for your lot, split between the administrative fund (day-to-day costs) and the capital works fund (major repairs and replacements). It should also show the arrears across the whole building.
What to look for: a high level of arrears across the scheme. If many owners are behind, the owners corporation may be short of cash. Since 2025, NSW owners can ask for payment plans, and since 23 October 2026 those plans can include current levies and interest. A rise in payment plans is not a red flag on its own, but heavy arrears are. See our report on the new payment plan rules.
2. Capital works fund and the 10-year plan
Every NSW owners corporation must prepare a 10-year capital works fund plan, which estimates major work over the next decade and the levies needed to pay for it. NSW now has a standard form for this plan, which should make plans easier to compare.
What to look for:
- When the plan was last reviewed. It should be reviewed at least every five years.
- Whether the fund balance matches the plan. A plan that calls for $500,000 in five years against a fund balance of $40,000 means a special levy or a large levy rise is coming.
- Whether the owners corporation is actually following the plan, or setting levies lower to keep owners happy.
The principles are the same as a US reserve study. Our reserve study guide explains how to tell whether a fund is on track.
3. Special levies
Check the minutes and financial records for special levies raised in the last few years, and any proposed ones. A special levy is a one-off charge on top of the regular levies, usually for a big repair the capital works fund can’t cover.
What to look for: a special levy that has been approved but is not yet due. Find out from the contract and your solicitor who pays it if it falls due after settlement. For the general mechanics, see special assessments explained. The US term is different, but the problem is the same.
4. Minutes of meetings
The minutes of AGMs, general meetings and committee meetings are the most revealing part of the records. They show what owners argue about.
What to look for:
- Recurring items about water leaks, cracking, waterproofing, cladding, lifts or the car park.
- Legal action, whether against the builder, a contractor or an owner.
- Expert reports commissioned and never acted on.
- Difficulty forming a committee or getting a quorum.
- Whether an AGM is held every year. Since 23 October 2026, an owners corporation can be penalised for not holding one. See our report on the new penalties.
5. Building defects and bonds
For buildings completed in recent years, the developer has had to lodge a building bond with NSW Fair Trading. The report should show any defect reports, bond claims and correspondence with the developer or the Building Commission.
What to look for: serious defects, especially waterproofing, fire safety and structural issues. Check whether they have been fixed or are still in dispute. A building in a defects dispute can face years of uncertainty, and levies may rise to fund the legal fight.
6. Insurance
The owners corporation must insure the building. The report should show the insurer, the sum insured, the excess and the premium.
What to look for:
- A sum insured that looks too low for the building’s replacement cost.
- A high excess for water damage. This is increasingly common and may be passed on to owners.
- Commissions. Since February 2025, strata managers have had to give itemised insurance quotes that show any commissions and broker fees. They cannot take a commission on insurance the owners corporation arranged itself.
- Whether the building has had trouble getting cover, which can point to defects or claims history.
Your contents and landlord insurance are separate. For the general idea of how unit owners’ cover fits with the building policy, see our unit owners’ insurance guide, which is written for the US market.
7. By-laws
The registered by-laws tell you what you can do in your own apartment. Check the rules on pets, renovations, short-term letting, smoking, parking and storage.
Not every by-law is valid. NSW law says a by-law cannot unreasonably prohibit keeping an animal, for example. Our guide to pets in strata explains how that works.
Also check for special by-laws that give particular owners exclusive use of common property, such as a courtyard or a car space, and whether you will be responsible for maintaining it.
8. The strata manager and the agreement
Look at who manages the building, the length of their agreement, what they charge, and whether they report commissions and training services at the AGM as required. Since 23 October 2026, the law clarifies what that report must include.
9. Compliance and disputes
Check for NCAT orders, Fair Trading mediation, and any compliance action against the owners corporation. Since October 2025, NSW Fair Trading has had power to investigate whether an owners corporation is meeting its duty to maintain and repair common property.
Red flags at a glance
- A capital works fund far below what the 10-year plan says it should be.
- A special levy approved or proposed.
- Unresolved defects, especially water and fire safety.
- Legal proceedings.
- Rising insurance premiums with high excesses.
- No AGM held, or no committee.
- A Fair Trading or Building Commission order.
- Missing records. If the strata manager can’t produce them, ask why.
One red flag does not mean you should walk away. It means you should ask more questions and price the risk into your offer.
Timing: before you exchange
NSW contracts for strata lots come with a short cooling-off period for most private-treaty sales, but no cooling-off at auction. Order the strata report before you exchange or bid, not after. A report usually takes a few business days. If time is short, ask the inspector for the section 184 certificate, the latest minutes and the capital works fund plan first.
Checklist
- Section 184 certificate: levies, arrears, embedded networks, compliance action.
- Last two years of AGM and committee minutes.
- Capital works fund plan and current balance.
- Special levies, past and proposed.
- Defect reports and building bond status.
- Insurance certificate, excess and commissions.
- Registered by-laws, including special by-laws.
- Strata management agreement and commission disclosures.
- Any NCAT or Fair Trading matters.
This guide is general information, not legal or financial advice. Talk to a conveyancer or solicitor before you exchange contracts. Sources: NSW Government guide to strata law changes; NSW Fair Trading.
