Why you need a strata report when buying a unit

What a strata report is

A strata report is a practical summary of information found during a strata records inspection. In NSW, access to owners corporation records for an inspection is provided for under section 182 of the Strata Schemes Management Act 2015, which is why you will often hear the term Section 182 search. The inspector or strata search provider reviews documents held by the owners corporation or strata managing agent, commonly including meeting minutes, correspondence, registered by-laws, financial statements, budgets, levy notices and insurance information.

Buyers also commonly obtain a strata information certificate, often referred to as a Section 184 certificate. NSW Government guidance explains that this certificate provides information about a lot within a strata scheme including financial details, and is typically requested by a potential buyer as part of the sale. The obligation to issue the certificate sits within section 184 of the Strata Schemes Management Act 2015.

What you can learn from a strata report

Levies, funds and likely future costs

Strata levies pay for both day-to-day expenses and longer term maintenance through the administration fund and the capital works fund. Reviewing budgets and fund balances can help you judge whether the scheme is building up enough money for future works or whether there is a heightened risk of special levies.

Minutes can also show whether arrears are common and whether debt recovery is being discussed. Section 184 certificates commonly include information about levies and outstanding amounts.

Maintenance planning and issues that do not show at inspection

NSW Government guidance notes that most schemes must have a 10 year capital works plan which must be reviewed at least every five years. Major works usually appear in the paper trail well before they start. Repeated discussion of defects, rectification work or ongoing contractor problems can be an early indicator of future costs and disruption.

Rules you must live with

By-laws are the scheme’s rules and they commonly deal with pets, smoking, short-term rental accommodation, parking and noise. If you want a pet, plan to renovate, rely on visitor parking, or hope to rent short term, you should check the by-laws and any recent disputes flagged in minutes.

How the building is run

Minutes and records can show whether the scheme is proactive and organised or whether decisions are repeatedly deferred and problems recur. Strata inspection reports are often described as serving a similar purpose to a building report for a house purchase, but they are based on scheme records and they are not a substitute for a physical building inspection.

Common red flags

These items are not always deal breakers, but they should prompt closer review and advice.

• Repeated references to unresolved defect or repair issues in minutes and correspondence
• A low capital works fund balance where the building clearly has ageing elements and shared infrastructure
• Frequent special levies or major works being funded without an adequate plan
• High arrears or debt recovery activity noted in records or on the Section 184 certificate
• By-laws that conflict with your intended use, such as restrictions affecting pets or short-term letting

How to organise a strata report in NSW

Arrange the strata report early enough to inform your offer and any cooling off decisions. A strata records inspection is typically arranged via a strata search provider, using the access framework under section 182. A Section 184 strata information certificate is requested from the owners corporation or strata managing agent under section 184.

NSW Government guidance states that from 1 April 2026, strata information certificates will need to include information about exclusive supply networks, often referred to as embedded networks, and the nature of the service provided. If utilities arrangements matter to you, raise this during contract review.

Get strata advice before you sign

Strata documents are dense, and the risk is rarely in a single line. If you are buying a unit in NSW, our conveyancing team can review the contract and strata material, explain what it means in plain English, and help you decide what enquiries or contract protections may be appropriate before exchange. Contact us to arrange a pre-purchase review.

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