Buying a strata unit in NSW: what to check before you sign

What strata title means

A strata scheme divides a building into lots. You own your lot outright.

The rest is common property, owned by all the owners together through the owners corporation. You become a member automatically when you buy.

Your unit entitlement sets your share of the costs and your voting rights.

Who owns the land in a strata title?

The common property is co-owned by all lot owners and managed by the owners corporation. Your lot is yours.

Your lot is yours. The building's structure, such as the external walls and the roof, is usually common property.

The strata report

A strata inspection report is a search of the owners corporation's records. It should cover:

1. The levies, and whether any are unpaid.
2. How much is in the administrative fund and the capital works fund.
3. Insurance.
4. Defects and repairs, past and planned.
5. Legal disputes involving the owners corporation.
6. Meeting minutes.

Get a building and pest inspection as well.

The section 184 certificate

This certificate is issued by the owners corporation. It shows the levies payable, any levies unpaid, the committee and manager, recent by-laws and the capital works funding.

If an unpaid levy is not shown on the certificate, the buyer is not liable for it.

We obtain it before settlement.

Levies and special levies

Owners pay levies into two funds:

1. The administrative fund, for day to day costs.
2. The capital works fund, formerly called the sinking fund, for major works under a 10 year plan.

A special levy can be raised for a large cost, such as repairs. Owners must get at least 30 days notice, or 14 days for emergency repairs.

The NSW Government does not publish an average levy figure. Levies depend on the building, so check the actual figures for the unit you are buying.

By-laws and pets

By-laws are the rules of the building. They cover matters such as pets, parking, changes to your lot and where children can play. They must not be harsh, excessive or oppressive.

A blanket ban on pets is invalid in NSW. A pet can be refused only if it would unreasonably interfere with other residents. Assistance animals cannot be refused.

New buildings and defects

For most new residential apartment buildings, the developer must lodge a bond of 2% of the contract price for the building work. It is used to fix defects found in the first years.

A planned rise to 3% has been deferred to 1 July 2028.

For off the plan purchases, read what an off the plan seller must give the buyer.

What are the changes to NSW strata law in 2025 and 2026?

Changes have started in stages since 1 July 2025. They include:

1. From 27 October 2025, levy notices must include a statement about financial hardship.
2. From 1 April 2026, for new multi-storey schemes, an independent surveyor must review and certify the initial maintenance schedule and levy estimates.
3. From 1 October 2026, strata committee members must complete free annual training.
4. From 23 October 2026, new and higher penalties apply.

What are the disadvantages of strata title?

1. You share decisions about the building with other owners.
2. Levies continue for as long as you own, and special levies can be large.
3. By-laws limit what you can do, such as renovations.
4. Defects in common property affect every owner.

None of these is a reason not to buy. They are reasons to check the records first.

Common questions