Understanding Your Strata Report Before Buying

What the report contains, what the numbers mean, and the red flags that should make you think twice before signing.

Updated April 202610 min read
Based on industry dataUpdated for 2025–26

Report cost

$250–$400

Turnaround

3–10 days

Records covered

3–5 years

Also need

Building inspection

What is a strata report?

A strata report is an independent review of the records held by an owners corporation (body corporate in Queensland). A professional strata inspector arranges access to 3 –5 years of the scheme’s financial statements, meeting minutes, by-laws, insurance policies, maintenance records, and correspondence, then summarises what they found in a written report.

The purpose is straightforward: it tells you whether the building you are about to buy into is well managed and adequately funded, or whether there are hidden costs waiting for you after settlement. A strata report is not legally required in most states, but skipping it is one of the most expensive mistakes a unit buyer can make.

The report covers the entire strata scheme — not just the lot you are buying. That matters because as an owner you share financial responsibility for common property. If the building needs a $500,000 roof replacement and the capital works fund has $12,000 in it, every owner will be hit with a special levy.

Strata report vs building inspection

Buyers sometimes assume a building inspection covers everything. It does not. A building and pest inspection examines the physical condition of your specific lot — cracks, moisture, pests, plumbing, and structural issues visible within the unit. The inspector does not have access to the strata scheme’s financial records, meeting minutes, or legal correspondence.

A strata report examines the financial, legal, and administrative health of the whole building. It tells you whether the owners corporation is solvent, whether major repairs are funded, whether there are active disputes, and what the by-laws say about pets, renovations, and short-stay letting.

You need both. A building inspection shows you what you are buying today. A strata report reveals what you will be paying for tomorrow.

Buying at auction? Order both reports before auction day

Auction purchases in most states have no cooling-off period. If you discover a $30,000 pending special levy or active cladding litigation after the hammer falls, you cannot walk away. Order the strata report and building inspection well before auction day.

What the report contains

A strata inspection report typically pulls together the following records from the strata manager. The exact documents vary by state and by the age of the scheme, but these are the core sections you should expect:

Key sections of a strata report

SectionWhat it showsWhy it matters
Financial statementsAdmin fund and capital works fund balances, income, expenses, and budgetReveals whether the scheme is solvent or underfunded
Levy scheduleCurrent quarterly levies per lot and any arrears owed by other ownersHigh arrears mean the scheme is collecting less than it budgeted
Capital works plan10-year forecast of major repairs and the funding schedule to pay for themAn outdated or missing plan is a strong predictor of future special levies
Meeting minutesAGM and committee meeting records from the last 3–5 yearsShows disputes, deferred maintenance, owner engagement, and management quality
Insurance certificateBuilding insurance policy, sum insured, excess, and expiry dateUnderinsurance leaves every owner exposed if the building is damaged
By-lawsRules covering pets, renovations, parking, noise, short-stay letting, and moreBy-laws directly affect how you can use your property day-to-day
Correspondence and noticesLetters from council, insurers, contractors, and legal firmsMay reveal pending compliance orders, defect claims, or tribunal proceedings

Want to estimate the strata fees for a property?

Our calculator estimates quarterly strata levies based on property type, location, building age, and amenities — useful for benchmarking the levies quoted in a strata report.

Use the Strata Fee Calculator →

Statutory certificates by state

In addition to the strata inspection report (which is voluntary), each state has a statutory certificate that the owners corporation is legally required to provide on request. This certificate is a formal, official document — typically more limited than a full inspection report but legally binding.

In NSW, this is the Section 184 certificate under the Strata Schemes Management Act 2015. It sets out the levies payable for a specific lot, any arrears, any special levies, and key financial details. Your conveyancer will usually order this alongside the full strata inspection report.

Strata information certificates by state

StateCertificateLegislationTypical cost
NSWSection 184 certificateStrata Schemes Management Act 2015$100–$150
VICOwners Corporation certificateOwners Corporations Act 2006 (s 151)$100–$250
QLDBody corporate information certificate (Form 13)Body Corporate and Community Management Act 1997$100–$350
WASection 110 certificateStrata Titles Act 1985$80–$200
SASection 39 certificateStrata Titles Act 1988$80–$200
ACTCertificate of statusUnit Titles (Management) Act 2011$80–$200

Costs are indicative and may vary. Tasmania and NT have equivalent disclosure requirements under their respective community titles and unit titles legislation.

Red flags to watch for

Not every issue in a strata report is a dealbreaker, but some patterns should make you pause and investigate further — or negotiate a lower purchase price. These are the warning signs that experienced conveyancers and buyers’ agents look for:

Capital works fund balance under $50,000

The next major repair will almost certainly trigger a special levy. A 20-year-old, 40-unit building should have $200,000+ in reserves.

Multiple special levies in the last 5 years

Indicates chronic underfunding. If the scheme has raised three special levies in five years, there will likely be more.

10-year capital works plan missing or outdated

Without a current plan, the committee is flying blind. Major expenses are inevitable — the only question is whether they are funded.

Levy arrears above 10% of annual budget

Significant arrears starve the scheme of cash, delaying maintenance and increasing risk for paying owners.

Active litigation or tribunal proceedings

Legal costs drain funds. Building defect claims against developers can run for years and cost six figures.

Repeated deferral of maintenance in minutes

If the same repair item appears in AGM minutes for three years running and is voted down each time, the building is deteriorating.

Frequent strata manager changes

High turnover suggests governance problems, owner dissatisfaction, or a committee that is difficult to work with.

Very low levies relative to comparable buildings

Artificially low levies look attractive but usually mean the capital works fund is being starved. You will pay later via special levies.

Low fees are not always a good sign

Strata levies that look unusually low compared to similar buildings in the area often indicate the capital works fund is being underfunded. The money will still need to be spent — it will just arrive as a large special levy instead of small, predictable quarterly contributions.

Reading the meeting minutes

Meeting minutes are the most overlooked part of the strata report and often the most revealing. The financial statements tell you how much money the scheme has; the minutes tell you how it is being managed and what it is like to live there.

Read the last three AGM minutes in full, not just the summary. Look for:

  • Deferred maintenance: the same repair item appearing year after year and being voted down or postponed each time
  • Pending special levies: a levy that has been approved at a general meeting but not yet invoiced — you will inherit this obligation on settlement
  • Active disputes or tribunal matters: NCAT (NSW), VCAT (VIC), or QCAT (QLD) proceedings between the owners corporation and owners, tenants, or third parties
  • Building defect claims: active litigation against the developer for cladding, waterproofing, or structural defects — these can run for years and cost six figures
  • Failed quorums: repeated AGMs that could not achieve quorum indicate disengaged owners and stalled decision-making
  • Recurring complaints: persistent noise, pet, parking, or short-stay letting issues tell you what daily life in the building is actually like

Minutes reveal management quality

Well-run schemes have concise, professional minutes with clear resolutions and follow-up actions. If the minutes read like a transcript of arguments, or if the same unresolved issue appears meeting after meeting, that tells you something important about the committee and the strata manager.

By-laws to check before you buy

By-laws are the rules that govern daily life in a strata scheme. They are set by the owners corporation and can vary significantly between buildings. Before you buy, check whether the by-laws align with how you plan to use the property:

  • Pets: since the 2021 amendments in NSW, blanket pet bans are no longer valid — an owners corporation can only refuse a pet if it causes “unreasonable interference.” However, by-laws may still require written approval and impose conditions. Check the process before assuming your dog is welcome
  • Renovations: most schemes distinguish between “cosmetic” (no approval needed), “minor” (committee approval), and “major” (general meeting) works. In NSW, if the committee does not respond to a minor renovation request within three months, it is automatically approved
  • Short-stay letting: if you plan to list the unit on Airbnb, check whether the by-laws restrict short-stay accommodation. Some schemes have adopted by-laws that limit or ban stays under 21 or 30 days
  • Parking: confirm whether your lot includes an allocated car space and check by-laws about visitor parking, storage in car spaces, and EV charging
  • Sustainability: recent NSW changes mean by-laws that ban solar panels, EV chargers, or other sustainability infrastructure based solely on appearance are now invalid (unless heritage-listed)

How to order a strata report

There are two documents you should order before buying a strata property:

  1. Strata inspection report ($250–$400): an independent, voluntary review of the scheme’s records by a professional strata inspector. Order from a strata search company or ask your conveyancer to arrange it. Turnaround is typically 3–10 business days.
  2. Statutory certificate ($80–$250): the formal certificate issued by the owners corporation (e.g. Section 184 in NSW). Your conveyancer will usually order this as part of standard pre-purchase searches. In NSW, the owners corporation must issue the certificate within 14 days.

If you are not confident reading the report yourself, a strata-specialist conveyancer can interpret the findings for you. This may cost an additional $300–$500 on top of standard conveyancing fees, but it is worth it for a complex or high-value purchase.

The combined cost of both reports — typically $350–$600 — is a fraction of what you stand to lose if you buy into a building with an underfunded sinking fund, active litigation, or a pending special levy.

Order early for auction properties

If you are buying at auction, order both reports as soon as you identify the property as a serious prospect. There is no cooling-off period after the hammer falls, and you cannot make the purchase conditional on the report.

Frequently Asked Questions