Buying a strata property – an apartment, a townhouse, or any home that sits inside a strata scheme – is not the same as buying a freestanding house on its own block. You are not just buying your individual strata lot. You are also buying into shared responsibility for the building, the common property, the rules, the costs, the future maintenance, and even the behaviour of other property owners. That’s why real estate agents spend so much time doing due diligence on strata documents.
What real estate agents check in strata documents is not just paperwork. It’s protection. A good real estate agent will review the strata plan, the strata inspection report, the strata report, the strata records and the strata financial reports to help you make an informed decision before you sign a contract. We are looking for red flags that could cost you thousands in future special levies, ongoing strata fees or urgent repairs to the apartment building that have not yet been paid for.
Let’s walk through what real estate agents actually check in strata documents before you proceed with buying a strata property.
What Real Estate Agents Check In Strata Documents About Levies, Fees And The Financial Health Of The Scheme
One of the first things a real estate agent looks at in a strata search or strata inspection report is the money. Not the sale price of the unit – the money behind the building.
When we are reviewing a strata property for a buyer, we look at:
- Current levies and strata levies paid quarterly (or in some schemes monthly).
- Whether those current levies are realistic. Low levies are not always good. Low levies can mean there’s not enough money being collected to maintain the building.
- Whether there have been special levies. A special levy is a one-off charge raised by the owners corporation (sometimes called the body corporate or strata committee) to cover something the regular strata fee can’t pay for. Repeated special levies are a sign that the scheme doesn’t have enough money in reserve.
- The capital works fund (also called the sinking fund). This fund exists to cover long-term major works – roofing, lifts, structural repairs, waterproofing, fire safety compliance, and facade work. If the sinking fund is nearly empty, that’s a red flag.
- The administrative fund, which handles day-to-day maintenance of common property such as lighting, gardening, cleaning and insurance.
Real estate agents will go through financial reports, annual budgets and documents relating to funds to check the financial health of the strata scheme. We’re trying to answer one simple question: does this owners corporation have enough money to look after the building?
If the strata has poor financial health, you as a buyer may be walking into a unit where the owners’ corporation will soon issue special levies to cover big repairs. That means you don’t just pay the purchase price of the unit. You also end up paying unexpected money on top – sometimes thousands – after you move in.
How Real Estate Agents Review The Strata Plan, Strata Title And Strata Lot Details
When you’re buying a strata property, you’re not just buying “Unit 5”. You are buying a defined strata lot inside a legally registered strata plan. That matters.
Real estate agents will review:
- The strata plan to confirm exactly what belongs to your lot and what is common property.
- Whether balconies, courtyards, car spaces, storage cages and gardens are on title or part of the common property shared by other property owners.
- Whether car parking is exclusive use, allocated, or just first-come-first-served in common areas.
- Your unit entitlements. Unit entitlements decide how much of the strata levies and special levies you have to pay compared with other property owners. Higher unit entitlements generally mean higher ongoing fees.
Why this matters: buyers often assume they “own” a courtyard or a car space when in fact it’s common property, or it’s only usable under a by-law. A real estate agent will make sure you understand what you actually get for the money you’re paying.
If you need clarity, we may suggest you seek legal advice or speak with a conveyancer before exchanging contracts. You should not sign a contract for sale without knowing exactly what is included.
Checking the Strata Committee, Owners Corporation and Strata Meetings for Warning Signs
The paperwork tells one story, but the activity of the strata committee and owners corporation tells another. Real estate agents routinely look at the minutes from strata meetings and the strata roll because those documents show how the building is being managed.
In those strata records and strata meeting notes, we are looking for:
- Ongoing disputes between owners. Constant fighting between other property owners can make day-to-day living stressful and can block basic maintenance decisions.
- Repeated complaints about noise, pets, parking, or misuse of common property. This tells us something about the strata community you are joining.
- Outstanding fire safety or compliance notices that haven’t been resolved. Fire safety is not optional. If fire compliance is overdue, a special levy could be raised to fix it fast.
- Evidence that the owners’ corporation elects proper officeholders and actually runs meetings. A disengaged or inactive owners’ corporation can allow an apartment building to fall behind on maintenance and insurance.
- References to major building issues (for example, leaks, water penetration, cracked render, lift outages) that have existed for a long time without action.
If the strata committee appears professional, responsive and active, that’s a good indication you’re dealing with a well-run strata scheme. If the minutes read like chaos, that’s a sign you’re not just buying a property – you’re buying into a headache.
Reviewing By-Laws, Rules And Restrictions So You Don’t Get Caught Out Later
Every strata scheme has its own by-laws (also called rules), and real estate agents will check those by-laws closely before you buy.
Why? Because the scheme bylaws and other documents relating to behaviour and use can affect how you live in the unit, how you renovate it, whether you can rent it out, and even whether you’re allowed certain pets.
Here’s what we look for in the by-laws:
- Renovation restrictions. Some strata schemes require written notice and formal approval from the strata committee or strata manager before you can do internal works such as hard flooring, bathroom waterproofing or structural changes.
- Short-term letting or rental rules. If you are buying a strata property as an investment property, you must understand whether the strata community allows standard leasing or short-term letting or has rules preventing certain types of tenants.
- Pet rules. Some apartment buildings prohibit pets or require approval. If you have a pet or plan to get one, this is not a small detail.
- Use of common property. Some schemes are strict about storing items in hallways, using balconies for clotheslines, or parking in visitor bays. Repeated breaches can trigger fines or formal warnings.
This is crucial for buyers who are planning to move in and enjoy a certain lifestyle, and also for property investors planning to rent the unit. You do not want to settle on a property and then be told, “You’re not allowed to do that here.”
Strata Manager, Building Manager and Day-To-Day Management of the Scheme
When real estate agents perform a strata search, we also look at who is actually running the scheme on a day-to-day basis. That includes the strata manager, sometimes a building manager (in larger apartment buildings), and in some cases a developer if the scheme is new.
We check:
- Whether there is a professional strata manager in place.
- How responsive that strata manager seems to be when owners lodge issues.
- Whether the building manager reports maintenance problems quickly or lets them drag on.
- Whether insurance appears current and if the cover is appropriate. Insurance is an important part of the owners’ corporation’s responsibilities.
Good administration matters. A strata scheme with decent leadership at the strata manager level nearly always runs better, handles money properly, and keeps the building in good condition. Poor administration leads to stress, urgent repairs, and special levies later.
For due diligence, we sometimes ask for permission (the seller’s permission is often required) to view deeper strata records or request a professional strata searcher to order a formal strata inspection report. That extra step can reveal major issues that are not obvious from the outside.
Looking For Major Building Issues, Not Just Cosmetic Problems
Real estate agents do not replace a qualified building inspection, but we absolutely look for clues in strata documents that point to bigger structural risk.
In particular, we look for:
- Water ingress, roof failure, balcony leaks and waterproofing failures. Water is one of the biggest sources of future cost in any apartment building.
- Concrete cracking, render damage, facade issues and cladding concerns. These can become very expensive for the owners’ corporation to repair.
- Lift failures and repeated lift service notes. If a lift in a multi-level building keeps breaking, that’s a sign of money to be spent from the sinking fund or through special levies.
- Fire safety compliance notices. Fire safety upgrades are not optional under Australian law, and if they have not been resolved, owners may be required to pay.
If the strata inspection report or strata records show major issues that have not been addressed, we’ll tell you. We may advise that you seek legal advice before proceeding or that you renegotiate the contract, the price, or the settlement terms. We want you to have a good understanding of what you’re taking on.
Why Real Estate Agents Treat Strata Due Diligence As Essential Before You Buy
All of this work is about avoiding the “surprise invoice”. We don’t want you to buy a strata title unit, sign the contract, settle, move in, and then receive notice from the owners corporation that a special levy of several thousand dollars per lot will be raised next quarter to deal with emergency facade works.
By reviewing the strata plan, strata roll, unit entitlements, financial reports, sinking fund, capital works fund, meeting minutes, by-laws, insurance, and any major maintenance history, a real estate agent can help you understand your real cost, not just the advertised price.
That gives you power. Power to negotiate. Power to walk away. Power to proceed with confidence.
Make An Informed Decision Before You Commit To A Strata Property
Buying a strata property is not just “buying an apartment”. You are buying into a shared financial structure, a shared responsibility model, and a shared set of rules. You need to know if the owners corporation has enough money in the sinking fund, whether special levies are likely, what the bylaws will allow, and whether the building has major issues hiding in the strata records.
Before you go ahead with buying a strata property, talk to Best Local Real Estate Agents. We’ll help you review the important information, work through the strata documents, and make sure you’re protected before you sign any contract for sale.
