Strata Report Explained
A complete guide to strata inspection reports – what they cover, how to read the financials, state-by-state laws, and the red flags that matter.
What Is a Strata Report?
When you buy a strata property – an apartment, unit, or townhouse – you are not just buying four walls. You are also buying a share of the building and common areas, and joining a legal entity responsible for managing them. A strata report tells you the health of that entity before you commit.
Unlike a building and pest inspection (which examines the physical condition of the property), a strata report is a records-based investigation. A specialist inspector reviews all documents held by the owners corporation and produces a report summarising what they found.
Think of it this way: a building inspection checks if the walls are solid. A strata report checks if the people managing those walls are competent, solvent, and not hiding anything.
Records Review
Meeting minutes, financial statements, compliance documents – typically going back 3 to 5 years.
Financial Health
Are the funds sufficient? Are levies up to date? Are there debts or upcoming special levies that could cost you thousands?
Legal Standing
Active litigation, orders from council, compliance failures, and disputes that could affect your ownership or cost you money.
Strata Report vs Building & Pest – What's the Difference?
These two reports are not interchangeable. You need both when buying a strata property.
🏗️ Building & Pest Report
- Physical inspection of the property
- Conducted under AS 4349.1-2007 and AS 4349.3-2010
- Structural, roofing, and waterproofing issues
- Live termite detection and past pest damage
- Takes 1.5 to 3 hours on-site
- Covers your lot and sometimes common areas
📄 Strata Report
- Records-based – no physical site inspection
- Financial health of the owners corporation
- Compliance, insurance, and legal matters
- By-laws, restrictions, and rules
- Done by a specialist strata inspector
- Takes days – records must be accessed and reviewed
- Covers the entire building and scheme
Critical rule: For any strata property purchase, you need BOTH reports. They are complementary, not substitutes.
What a Strata Report Actually Covers
Click each section to expand the full detail.
Understanding the Finances – In Plain English
The financial section of a strata report is where most buyers get confused. Here is a simple framework.
Check the Administrative Fund Balance
Is it in surplus or deficit? A deficit means the scheme is spending more than it collects on day-to-day operations. Compare this year's balance to last year's to see the trend.
Check the Capital Works Fund Against the 10-Year Plan
The 10-year capital works forecast tells you what the fund should have saved by now. If actual balance is significantly below forecast, a special levy is likely in your future.
Check for Proposed Special Levies
If a special levy has been discussed in minutes or voted on at a recent meeting, you need to know before you exchange. Your conveyancer must check who pays this under the contract terms.
Check Outstanding Levies from Other Owners
If other owners are behind on their levies, the scheme is short on cash. High outstanding levies signal poor governance.
Ask Your Inspector to Explain Any Concerns
Good strata inspectors will give you a verbal debrief. Ask them: 'Are the finances healthy?' and 'Is there anything that would give you pause?'
The Strata Inspection Process – Step by Step
Engage a Strata Inspection Specialist
Not all building inspectors do strata reports. You need a specialist who has experience accessing strata records in your specific state. Ask about their experience and turnaround time.
The Inspector Contacts the Owners Corporation
The inspector contacts the strata management company and arranges access to records. Statutory access timeframes vary: NSW Section 184 within 14 days; VIC Section 151 within 10 business days; ACT Unit Title Certificate within 14 days; QLD body corporate records within 7 days.
Records Are Reviewed
The inspector physically attends the strata office (or receives electronic records) and reviews all documents – usually covering the past 3 to 5 years. NSW now mandates electronic record keeping (effective from June 2024).
Report Is Compiled and Delivered
Most strata reports are delivered within 2 to 5 business days of records access. This is slower than a building inspection – factor this into your due diligence timeline.
Review with Your Solicitor or Conveyancer
Unlike a building report, a strata report has legal dimensions. Your conveyancer should review any outstanding levies, special levies, or legal matters to understand how they interact with your contract for sale.
State-by-State Legal Requirements
Strata law in Australia is state-based – the legislation, documents, names, and mandatory disclosures all differ by state.
New South Wales
NSW has the largest strata sector and the most evolved regulatory framework. Major reforms were rolled out in stages – with the April 2026 reforms specifically expanding what must be included in Section 184 Certificates.
Section 184 Certificate (Strata Information Certificate)
The cornerstone of strata disclosure in NSW. The owners corporation MUST issue it within 14 days of an application. From 1 April 2026, the certificate must additionally cover embedded networks, orders against the owners corporation, and recent/upcoming meetings.
Mandatory Disclosure
- Section 184 Certificate must be included in the contract for sale
- Covers levies, outstanding debts, insurance, by-laws, legal proceedings
- From April 2026: embedded network details required
- Owners corporation must provide within 14 days of written request
What Buyers Should Obtain
- Section 184 Certificate (usually in contract)
- Full strata inspection report (independent)
- AGM and committee minutes (3-5 years)
- 10-year capital works plan
- By-laws (registered and any amendments)
Governing Body
- Term: Owners Corporation
- Regulator: NSW Fair Trading (Strata)
- Disputes: NCAT (NSW Civil and Administrative Tribunal)
- Records must be kept electronically (from June 2024)
NSW-Specific Requirements
- Annual Fire Safety Statement compulsory
- Mandatory strata annual reporting via Strata Hub
- Sustainability must be considered at each AGM
- Initial Maintenance Schedule (IMS) for new schemes
State-by-State Quick Comparison
A single reference table to see how each state differs at a glance.
| State | Body Called | Key Legislation | Mandatory Document | Tribunal | Strength |
|---|---|---|---|---|---|
| NSW | Owners Corporation | Strata Schemes Management Act 2015 | Section 184 Certificate Mandatory | NCAT | Very Strong |
| VIC | Owners Corporation (OC) | Owners Corporations Act 2006 | Section 151 Certificate Mandatory | VCAT | Very Strong |
| QLD | Body Corporate | Property Law Act 2023 + BCCMA 1997 | Form 2 + Form 33/34 + CMS Mandatory | QCAT | Strong |
| WA | Strata Company | Strata Titles Act 1985 (amended 2020) | Pre-contractual Disclosure Statement Mandatory | SAT | Strong |
| SA | Strata Corporation | Land & Business Act 1994 + Strata Titles Act 1988 | Form 1 (Vendor's Statement) Mandatory | Magistrates Court | Moderate |
| ACT | Owners Corporation | Unit Titles (Management) Act 2011 | Unit Title Certificate (s.119) Mandatory | ACAT | Strong |
Red Flags – Know These Before You Read Your Report
These findings should make you stop, get advice, and reconsider your position.
Unresolved Fire Order
A council fire order demanding mandatory rectification. Costs can reach hundreds of thousands across the building. You inherit this liability at settlement.
Special Levy Voted or Proposed
An upcoming one-off levy to cover a major expense. Amounts from $5,000 to $50,000+ per lot are not uncommon. Know about it before you buy.
Severely Underfunded Capital Works Fund
If the fund is far below the 10-year forecast, a large special levy or future levy increase is inevitable. You will be paying for years of underfunding by previous owners.
Combustible Cladding – Non-Compliant or Unresolved
Buildings identified as having combustible cladding with no approved remediation plan face restricted lender appetite, possible insurance difficulties, and uncertain rectification costs.
Active Litigation Against the Owners Corporation
A lawsuit against the body corporate creates financial uncertainty. If the scheme loses, all owners share the cost.
Chronic Unresolved Maintenance Issues
The same leaks or defects appearing in meeting minutes year after year with no resolution – a classic sign of passive or incompetent management.
High Owner Levy Arrears
Multiple owners behind on levies signals financial stress. The scheme may be cash-strapped, deferring maintenance, or unable to enforce levy collection.
Major Building Defects (Newer Buildings)
For buildings under 7 years old, significant defects where the builder has become insolvent leave the owners corporation holding the remediation cost.
What Does a Strata Report Cost?
Costs vary by state, building complexity, and the inspector's scope. Statutory access fees are often charged by the strata management company and passed through to you.
| Report Type | Typical Cost Range | Notes |
|---|---|---|
| Basic strata inspection report | $300 – $500 | Small scheme, limited history reviewed |
| Comprehensive strata report | $500 – $900 | Most common. Full records review, 3-5 years of minutes |
| Large/complex building | $800 – $1,500+ | High-rise, multiple buildings in one scheme |
| Statutory certificate fees (NSW/VIC/ACT) | $200 – $400 | Regulated fee paid to owners corporation |
| QLD body corporate records inspection fee | $19.35 or $37.20 | Statutory fee per QLD Government, varies by scheme module |
| Rush / priority report | Add $100 – $300 | For urgent timelines – turnaround 24–48 hours |
Perspective check: On a $750,000 apartment purchase, a comprehensive $700 strata report is less than 0.1% of the purchase price. A single undisclosed special levy could cost you $30,000. The maths is not close.
Frequently Asked Questions
A strata report is not optional due diligence. It is the only way to see what you are actually buying – the people, the finances, and the legal obligations you are joining.
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