What strata buyers need to know before buying a strata property in NSW

Buying a strata property — whether it’s an apartment, townhouse or villa — is an attractive option for many NSW homebuyers. Strata living offers convenience, shared amenities, community living and access to desirable locations.

But it also comes with unique legal, financial and lifestyle obligations that differ from buying a standalone home. Understanding these before you sign on the dotted line can save you stress, unexpected costs and future disputes.

1. You are buying more than just a home

When you buy a strata property, you’re not just purchasing your own lot — you become a member of the Owners Corporation (OC), which collectively manages the building or community. This means you share responsibility for common property, shared facilities, insurance, maintenance and long-term planning.

2. Review the strata records closely

Before you commit to a purchase, it’s crucial to get a full set of strata records and inspect them thoroughly. These records reveal important information about the building and how well it’s been managed:

• Financial statements, including sinking funds and existing levies

• Minutes of past meetings (e.g., AGM outcomes, ongoing disputes)

• Any planned maintenance or special levies

• Insurance documentation and history

• Strata defects, compliance issues or legal matters

A detailed strata report will bring these to light — and a conveyancer with strata expertise can help interpret them.

3. Understand strata levies & future costs

Strata levies are ongoing quarterly fees that cover upkeep, cleaning, insurance and administration. What’s less obvious is that:

• Levies can rise if significant repair work is needed.

• A low current levy doesn’t always mean a good deal — it may hide future increases.

• Special levies can be called if there’s not enough money in the sinking fund to cover major works.

Make sure you understand both current and forecast levies before you buy.

4. Know the by-laws and what they mean for you

By-laws govern how residents live in and use the property. They cover issues such as noise, parking, renovations, use of common facilities and more. Prospective buyers should:

• Read the by-laws included in the contract of sale

• Check for any restrictions or conditions that might affect your lifestyle

• Ask the agent for clarification on anything that’s unclear

If possible, get by-laws reviewed by a strata expert — what seems minor can have big day-to-day consequences.

5. Clarify what’s common property vs what’s yours

In a strata scheme, your lot is just part of the picture. Common property (like hallways, roofs, gardens, gyms and driveways) is shared and maintained by the Owners Corporation. This distinction affects:

• Who pays for repairs

• Who makes decisions about changes

• How special levies are triggered. Understanding these boundaries upfront can help you avoid frustration later.

6. Conduct independent building & inspection reports

In addition to a strata report, consider:

• A building inspection — to assess the physical condition of the property and uncover issues like damp or structural faults

• A pest inspection — especially for older buildings

These reports give you clarity on what you’re buying and what costs may lie ahead.

Conclusion

Buying into a strata scheme in NSW can be a rewarding and strategic choice — but it requires the right preparation. Do your homework: thoroughly review strata records, understand your financial obligations, know the by-laws, clarify what’s common property, and seek expert advice where needed.

If you’re unsure where to start, Centric Strata can help guide you through the process and interpret the complexities of strata records and obligations so you buy with confidence.