Strata report in NSW: what to look for before you buy

When you buy an apartment, townhouse, villa or many duplexes in New South Wales, you are buying a lot in a strata scheme. You own your lot, you share ownership of common property, and you become a member of the owners corporation. The building's finances, defects and disputes become partly yours.

Two documents tell you most of what you need: a strata search report and a section 184 certificate. This guide explains what each shows and what to look for. It is general information, not legal advice.

The documents in your contract

NSW Government guidance says the seller must include a copy of the strata plan as part of the contract of sale, and a copy of the by-laws must also be attached. The strata plan shows the unit entitlement for each lot, which determines your share of common property, how much you pay towards it and your voting power.

Read the by-laws early. They cover pets, renovations, parking and other rules. NSW Government notes by-laws cannot be harsh, excessive or oppressive, or conflict with any law.

The strata search report

NSW Government recommends getting a strata search report before you buy. It draws on the strata roll and records, and gives details on:

• the finances of the scheme
• whether the scheme has good insurance, and when it was last checked
• building defects and planned works
• safety requirements
• existing or pending legal matters
• meeting notes, showing how the scheme is run and evidence of disputes.

You can hire a professional strata searcher or conveyancer, or inspect the records yourself. To inspect yourself, get the strata manager's contact details from the agent; you need the seller's permission and must pay a fee to the owners corporation. If you hire someone, NSW Government suggests comparing cost, delivery time, what is included, whether they will go through the report with you, and their experience.

The section 184 certificate

NSW Government explains that a section 184 certificate from the owners corporation, under the Strata Schemes Management Act 2015, gives information including:

• the names and addresses of strata committee members, the managing agent and building manager
• the levies to be paid by the owners
• any outstanding levies for the lot
• the proposals for funding matters in the 10-year capital works plan
• where the records and financial statements can be viewed
• by-laws made in the six months before the certificate that have not yet been lodged at NSW Land Registry Services
• whether a strata renewal committee has been established to sell or redevelop the scheme
• whether the scheme has an exclusive supply (embedded) network, such as electricity or internet.

An important protection: NSW Government notes that if a levy was outstanding before the certificate was given and is not shown on it, the purchaser is not responsible for that payment.

What to look for

1. Levies and the capital works fund

NSW Government explains there is an administrative fund for day-to-day costs and a capital works fund for major work such as roofing, lifts or fencing, guided by a 10-year capital works plan.

Look at:

• the current levies for your lot and how often they are paid
• the capital works fund balance against what the 10-year plan says is needed
• whether the plan is current and realistic for the building's age.

NSW Government warns that low levies could mean a steep rise later, and that special levies may be needed if there is not enough money for large capital works.

2. Special levies

• Has a special levy been raised or proposed in recent minutes?
• When is it payable, and who pays under the contract? Check special conditions about levies raised before settlement.

3. Defects and planned works

• Are there building defect reports? Waterproofing, cladding, fire safety and concrete cancer are recurring themes in older and some newer buildings.
• For newer buildings, is the owners corporation pursuing a builder or developer?
• Are major works planned, and how will they be funded?

4. Insurance

• Is building insurance current, and is the sum insured adequate?
• Any claims history, unusual excesses or difficulty getting cover?

5. Legal matters and disputes

• Is the owners corporation involved in proceedings in a tribunal or court?
• Do the minutes show repeated disputes, such as between owners, with the strata manager, or about by-law breaches?

6. Meeting minutes

Read at least the last two or three annual general meeting minutes and recent committee minutes. Look for recurring items that never get resolved, like water leaks or lift repairs, and discussions that foreshadow levies.

7. Embedded networks and renewal

• An embedded network can limit your choice of electricity or internet supplier.
• A strata renewal committee means owners are considering selling or redeveloping the scheme.

Warning signs

• Capital works fund well below what the plan requires, with no levy increase.
• A pattern of deferred maintenance in minutes.
• Defects or cladding reports with no funded rectification plan.
• Legal proceedings involving the owners corporation.
• By-laws that conflict with your plans, such as pets or short-term letting.
• Missing records, or a strata manager who cannot produce minutes.

Building inspection too

A strata report is about the scheme's records. It is not a physical inspection. NSW Government recommends a building inspection report as well. Ask the agent whether existing pre-purchase reports are available, but it is best to get your own.

How ReadyToSign helps

ReadyToSign reads the strata documents attached to your NSW contract, such as the strata plan, by-laws and any section 184 certificate or strata report you upload. It extracts levies, fund balances, outstanding amounts, embedded networks and legal matters, and lists what the papers do not cover. Each finding links to its page. It is not a strata inspection and not legal advice.

Get a report on your contract and strata papers

Related: What to look for in a contract of sale in NSW · Owners corporation certificate (VIC) · QLD body corporate certificate

Frequently asked questions

What is a strata report?

A strata search report summarises the strata scheme's records: finances, insurance, defects and planned works, safety, legal matters and meeting minutes. NSW Government recommends getting one before you buy.

What is a section 184 certificate?

A certificate from the owners corporation under the Strata Schemes Management Act 2015. It shows levies, outstanding levies for the lot, capital works funding proposals, recent unlodged by-laws, any strata renewal committee and any embedded network.

Am I liable for levies not shown on the section 184 certificate?

NSW Government states that if a levy was outstanding before the certificate was given and is not shown on it, the purchaser is not responsible for that payment.

Can I do a strata search myself?

Yes. You can inspect the strata records with the seller's permission, arranged through the agent, and by paying a fee to the owners corporation. Many buyers hire a strata searcher or conveyancer instead.

Are low strata levies a good sign?

Not necessarily. NSW Government warns that low levies could mean steep rises later, and special levies may be needed if funds are insufficient for capital works.

Sources

• NSW Government, Buying a strata property: https://www.nsw.gov.au/housing-and-construction/strata/buying-a-strata-property
• NSW Government (NSW Fair Trading), Section 184 certificate – strata schemes: https://www.nsw.gov.au/housing-and-construction/strata/strata-publications/section-184-certificate-strata-schemes
• NSW Fair Trading, Strata and community living: https://www.fairtrading.nsw.gov.au/housing-and-property/strata-and-community-living

General information only, not legal advice. Last reviewed 18 October 2026.