Strata records buyers should read before making an apartment offer
An apartment can look well presented during an inspection, but the condition and finances of the wider building can be just as important as the individual lot. Before making an offer in NSW, buyers should take time to understand the strata scheme, its ongoing costs and any work that may affect future budgets.
This is not about expecting a building to have no maintenance issues. It is about identifying the information that helps you compare the apartment fairly and ask better questions before committing.
Read the strata records, not only the listing
Ask for the documents that explain how the owners corporation operates. Depending on the scheme, this may include recent meeting minutes, financial statements, levy notices, the sinking fund plan, building insurance details and records of significant repairs or disputes. A conveyancer or solicitor can help you obtain and interpret the documents that are relevant to the purchase.
Meeting minutes can reveal issues that are not obvious during an inspection. Look for repeated discussion about water penetration, concrete repairs, lifts, roofing, fire safety, cladding, garage doors, security or defects. One mention does not automatically mean a problem, but a pattern of unresolved discussion deserves a clear question.
Understand levies and possible future costs
Regular strata levies help pay for administration, insurance, cleaning, gardening and the maintenance of common property. The amount should be considered alongside the building's age, facilities and maintenance history. A lower current levy is not necessarily better if major work has been deferred or the sinking fund appears under pressure.
Check whether special levies have been proposed, discussed or issued. Ask what work they relate to, whether a timetable has been set and how the cost is allocated. Buyers should also consider other ownership costs such as council rates, utilities, contents insurance, parking arrangements and any expected repairs inside the lot.
Inspect common property carefully
During a second inspection, look beyond the apartment itself. Check hallways, balconies, basement areas, storage cages, the driveway, bin rooms, gardens, lifts and visible drainage points. Notice signs of dampness, cracking, corrosion, poor ventilation or temporary repairs. If the building has a pool, gym or other shared facilities, ask how those facilities are maintained and funded.
For older buildings, ask whether essential services and safety systems have been inspected and maintained. For newer buildings, ask about defects, warranty work and any outstanding builder or developer discussions. Specialist building advice may be worthwhile when a visible issue is unclear.
Check how the apartment can be used
Review the by-laws and scheme rules before assuming that a property can be used in a particular way. Owners and tenants may have rules about pets, parking, renovations, flooring, storage, balconies and short-term letting. If you plan to make changes, ask whether owners corporation approval or other consent may be required.
Also confirm that the title, car space, storage area and inclusions match the contract and the inspection. Small differences between a listing description and the legal documents can create avoidable uncertainty.
A practical pre-offer checklist
- Request relevant strata records and recent meeting minutes.
- Compare current levies with the building's maintenance needs.
- Check for special levies, disputes, defects and planned works.
- Inspect common property as well as the apartment.
- Review by-laws, parking, storage and renovation requirements.
- Ask a qualified conveyancer or solicitor to review the contract and records.
The aim is to make a decision with a clearer view of both the home and the building around it. A careful records review can help buyers budget more realistically and identify questions before an offer becomes a commitment.