Strata report review: what to look for in NSW

A strata report review is a careful read of an apartment or townhouse building's records before you buy: its finances, meeting minutes, defects, insurance, disputes and by-laws. In NSW, the strata report is prepared by an inspector who searches the owners corporation's records. Reviewing it tells you whether the building is well run, whether a big bill is coming, and whether there are problems the listing won't mention.

When you buy into a strata scheme, you're buying a share of the whole building. Its debts, repairs and disputes become partly yours. That's why reviewing the strata report is one of the most important checks for any apartment buyer.

What's in a NSW strata report

A typical strata report covers:

• Financial statements. The administrative fund and capital works fund balances, levies owing and any loans.
• Levies. What the lot pays each quarter and any special levies raised.
• The capital works plan. The 10-year plan for major repairs and replacements.
• Meeting minutes. Annual general meetings, extraordinary general meetings and strata committee meetings, usually for the last two or three years.
• Insurance. The building insurance policy, its sum insured and any claims.
• By-laws. The rules owners and tenants must follow.
• Correspondence and notices. Letters about defects, complaints, legal matters and council or government notices.

What to look for in a strata report review

The money

Compare the capital works fund balance with what the 10-year plan says needs spending in the next few years. A large gap, or a plan that's badly out of date, often means a special levy later. Check whether levies are owed by other owners, because arrears can strain the budget. An administrative fund in deficit is also worth asking about.

Special levies

Search the minutes for motions to raise a special levy, quotes that were tabled but not approved, and works that were deferred. A levy discussed and put off is often the one that lands on a new owner. Work out your share using the lot's unit entitlement.

Defects and repairs

Look for water leaks, waterproofing failures, cracking, concrete cancer (spalling), balcony and roof problems, and fire safety upgrades. For newer buildings, check whether there are defect reports or claims against the builder. Owners talk about these issues in the minutes long before buyers ever hear.

Disputes and legal matters

Check for legal action between owners, with the strata manager or with the builder. Legal costs come out of the owners' funds.

Government orders

The NSW Building Commission publishes a register of rectification, prohibition and stop work orders on residential apartment buildings. Check the building's address and strata plan number against it.

By-laws

Read the by-laws for anything that affects how you'd live or invest: pets, renovations, flooring, parking, short-term letting and smoking.

What a strata report can't tell you

A strata report reflects the records on the day of the inspection. Anything decided afterwards, discussed informally or not yet written down won't appear. Ask the strata manager for anything newer before you exchange, and ask your solicitor or conveyancer to review the report with the contract.

How WIBI helps

Upload the strata report to WIBI and it reads every page in the background. It finds the balances, levies, defects, disputes and by-laws, compares the capital works fund with the plan, and checks the Building Commission register for the building. Every finding shows the page it came from. WIBI isn't legal advice, so have your solicitor or conveyancer review the contract too.

Questions

How much does a strata report cost in NSW?

Prices vary by provider and the size of the building. Get a quote before you order, and check whether it includes the full minutes and financial statements.

Can I review the strata records myself?

Yes. Under NSW strata law, a prospective buyer can apply to inspect the owners corporation's records, usually with the owner's consent and a fee. A strata inspection report saves you doing it yourself.

What is a section 184 certificate?

A strata information certificate (under section 184 of the Strata Schemes Management Act 2015) confirms details such as levies owing on a lot. It's a useful check, but it isn't a full review of the building's records.

What are the biggest red flags in a strata report?

A low capital works fund against a heavy repair plan, special levies proposed or deferred, recurring leaks or waterproofing problems, unresolved defects, and legal disputes.

How old should a strata report be?

As recent as possible. Records change after every meeting, so a report more than a few weeks old may miss new decisions.

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?

General information only, not legal, financial or building advice. See our Terms of use.