Strata certificate (section 184) in NSW, explained

A strata certificate (section 184) is a short statement from the owners corporation that sets out what one apartment owes and pays: its levies, anything unpaid, and who runs the building. Your conveyancer usually orders it close to settlement, so the amounts owing on the day you take over are right. It is useful, but it is not a full check of the building, so it should never replace reading the strata records before you exchange.

What a strata certificate shows

Under section 184 of the Strata Schemes Management Act 2015, an owners corporation must give a certificate about a lot when asked in writing and the fee is paid. It covers that one lot and the scheme around it. It shows:

• The regular levies for the lot (the administrative fund and the capital works fund), how often they're due and when the next one falls
• Any levies, interest or by-law charges the owner hasn't paid
• Any special levy that has been raised and is still to be paid
• Whether a strata renewal committee has been set up (the first step towards selling or redeveloping the whole building)
• The names of the strata committee members, the strata managing agent and any building manager

The owners corporation has 14 days to provide it once the written request and fee arrive. Most strata managers can turn it around faster for a settlement.

What it doesn't show

A strata certificate is a financial snapshot of one lot. It won't tell you:

• Whether the building has defects, leaks or concrete cancer
• What repairs are planned, or whether the capital works fund can pay for them
• Whether owners have discussed a special levy that hasn't been voted on yet
• Disputes between owners, tribunal cases or orders from the council or fire brigade
• What the by-laws say about pets, renovations, parking or short-term letting

Those answers are in the strata records: the minutes of meetings, the financial statements, the 10-year capital works plan, insurance, fire safety statements and by-laws. That is what a strata report (strata inspection report) reviews. Our guide to reviewing a strata report explains what to look for.

When to get one

There are two different moments in a purchase, and they need different documents.

Before you exchange

You're deciding whether to buy and what to pay. A strata certificate alone won't answer that. Read the strata report and the minutes of the last two or three years of meetings, and check the capital works plan against the fund balance. Special levies are the most common surprise. If something worries you, ask the strata manager before you sign.

Before settlement

Your conveyancer orders the strata certificate so the levies can be split correctly between you and the seller at settlement. The seller pays what's owing up to that day, and you pay from then on. If the certificate shows unpaid levies, your conveyancer will make sure they are cleared or adjusted.

Who can apply

The owner of the lot, a mortgagee or covenant chargee, or anyone they authorise in writing. In practice your conveyancer applies with the seller's authority, or the seller's agent arranges it. The fee is set by regulation and is small compared with the cost of a surprise levy.

Red flags on a strata certificate

Even as a snapshot, the certificate can raise questions worth asking before settlement:

• Unpaid levies or interest. Make sure they are paid by the seller, not passed to you.
• A special levy already raised. Check who pays the instalments that fall after settlement. Your contract decides this, so ask your solicitor.
• A strata renewal committee. The owners may be looking at selling or redeveloping the building.
• Regular levies much higher than the agent quoted. Ask why.

Questions

Is a strata certificate (section 184) the same as a strata report?

No. The certificate is a short statement about one lot's levies and who runs the building. A strata report reviews the building's records: meetings, money, repairs, insurance and rules. You want the report before you exchange, and the certificate before settlement.

Does the seller have to give me a strata certificate?

The contract decides who orders it and when. In most NSW sales your conveyancer arranges it for settlement. Some contracts ask the buyer to apply, so check the special conditions.

How long is a strata certificate good for?

It's accurate on the day it's issued. Levies fall due and new decisions are made, so your conveyancer will usually order it close to settlement or update it if settlement moves.

Can a strata certificate warn me about future special levies?

Only a levy that has already been raised. A levy that owners have discussed but not voted on, or a big repair coming in the capital works plan, won't appear. You'll find those in the minutes and the plan.

Keep reading

• How much does a strata report cost in NSW?
• Is a low capital works fund a red flag?
• Should you buy an apartment with a special levy?
• Can ChatGPT review a strata report?

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