10 things every strata buyermust check before exchange.

A special levy is the strongest signal that the building has had an unbudgeted shock - capital works failure, insurance claim, legal cost, structural defect. It also indicates how the strata committee handles surprise expenses.

Look for AGM/EGM minutes that authorised a special levy, the amount per unit entitlement, and the works the levy funded.

Multiple special levies in 24 months, or a single levy exceeding the annual administration fund - both indicate a scheme operating without enough reserve.

Capital works (sinking) fund is the buffer for major repairs - lifts, roofing, waterproofing, facade. An underfunded capital works fund means future special levies are coming, paid by you.

Latest financial statements showing capital works fund balance, plus the most recent ten-year capital works plan with projected vs actual contributions.

Balance below 5% of the building's replacement value, OR a ten-year plan that has been accepted but not actioned (contributions falling behind projections).

An owners' corporation in active litigation - whether plaintiff or defendant - signals unresolved disputes that will become your problem. Legal costs are funded by levies; outcomes affect property value and future obligations.

Recent committee meeting minutes referencing legal advice, NCAT (or VCAT/QCAT) matter numbers, and any judgments or settlements documented in the records.

Defects litigation against the original builder, breach proceedings against the owners' corporation, or recurring NCAT applications by the same lot owner.

An expired or restricted Certificate of Currency means you have no cover at exchange. A high claims history pushes premiums up and signals systemic building issues.

Current Certificate of Currency (effective dates, sums insured for building / common contents / public liability), claims history for the last 3-5 years, and any insurer-imposed conditions or restrictions.

Coverage gaps, sums insured below replacement value, water-ingress claims (a leading indicator of waterproofing failures), or insurer-imposed deductibles for specific risks.

The AGM is where the building's financial year is signed off and the year ahead is set. The EGM is where the unscheduled decisions happen - the special levies, the urgent repairs, the contested by-laws. Reading both shows you what the owners actually fight about.

Latest AGM and any EGM minutes from the previous 24 months. Pay attention to: budget approvals, levy resolutions, contractor appointments, by-law changes, defects updates.

Repeatedly deferred motions on major capital works, low quorum at the AGM (signals disengagement), or by-laws being passed that materially affect lot owners' rights.

Most strata buildings have at least one open defect - waterproofing, fire safety, structural. The risk is not the existence of a defect but whether anyone is funding the rectification.

Engineer or contractor reports referenced in committee minutes, any defects bond or builder warranty matters, capital works plan line items addressing defects.

A known major defect (e.g. waterproofing failure on a balcony stack) with no funded rectification plan, or a defects bond that has been called and exhausted.

By-laws are the rules of the building. They govern pets, renovations, parking, short-term letting, smoking, and noise. Some by-laws materially change what you can do with the property you're buying.

Consolidated by-law schedule (the current set, not just amendments), plus any exclusive-use by-laws assigned to specific lots.

Recent by-laws restricting renovations or short-term letting if those are part of your purchase intent, or exclusive-use by-laws granting common-property rights to other lot owners that constrain your access.

Approved works mean upcoming levies. Proposed but unfunded works mean the levies are coming - just not yet authorised. Either way, you'll pay if you exchange.

Capital works plan line items in the next 24 months, contractor quotes obtained, any consultant scoping documents, motions on the AGM agenda relating to works.

Major works (>$100k) proposed without a funding plan, OR works marked as 'in progress' in records older than 12 months (often indicates contractor disputes or scope blowout).

The managing agent is the records custodian and the buyer's primary contact during the strata report process. Frequent changes signal owners' corporation dysfunction or governance disputes.

Current managing agent of record, contract term, any committee resolutions about agent appointment or change in the last 24 months.

Three or more managing agents in 36 months, OR a recent termination by motion (signals a breakdown in scheme governance that will affect your access to records and ongoing service).

A committee of one or two people running a fifty-lot scheme is a single point of failure. A committee dominated by the developer (in newer buildings) signals decisions tilted toward developer interests, not lot-owner interests.

Committee membership over the last two AGM cycles. Look for: committee size relative to scheme size, any developer-controlled positions, the chairperson's tenure.

A committee under quorum repeatedly, OR a committee where a majority of seats are held by the same family or related entities.