Buyer’s guide · NSW
Buying a strata unit in NSW: what every buyer needs to know
When you buy a strata unit, you also buy into the building’s finances, rules and repairs. Here’s what to check before you sign, from levies and by-laws to defects and strata reports.
Buying an apartment, unit or townhouse in a strata scheme is different from buying a freestanding house. You own your lot, but you also become a member of the owners corporation, which owns and manages the common property, such as the roof, external walls, lifts, driveways and gardens. Every owner pays levies to fund it, and every owner is bound by the scheme’s by-laws.
That means the condition of the building and the health of the strata scheme matter just as much as the unit itself. A low price can hide a large special levy, a dispute or major defects. This guide explains what to look at before you sign a contract for a strata property in NSW.
Key takeaways
- The seller must attach the strata plan, the by-laws and property certificates to the contract, but most of the information you need sits in the owners corporation’s records.
- A strata report lets you check the levies, the funds, meeting minutes, disputes and defects before you commit.
- Under the standard contract, the seller pays contributions determined before the contract date, and you pay those determined later, so check for planned special levies.
- By-laws can’t unreasonably ban pets, and renovations need different approvals depending on whether they’re cosmetic, minor or major.
- You usually get a 5 business day cooling-off period on a private sale (10 business days off the plan), but none if you buy at auction.
On this page
How strata ownership works
In a strata scheme, the building is divided into lots (your unit, and sometimes a car space or storage cage) and common property. The owners corporation is made up of all the lot owners. It’s responsible for maintaining and repairing the common property, insuring the building and keeping records, usually with the help of a strata managing agent.
Each lot has a unit entitlement. It sets your share of the common property, how much you pay in levies and, for some decisions, your voting power. You’ll find it on the strata plan.
The NSW Government’s guide to buying a strata property is a useful starting point. You can also look up basic details of any scheme, including its plan number, number of lots and when it last lodged its annual report, on the free NSW Strata Hub search.
What comes with the contract
For a strata lot, the seller must attach certain documents to the contract before it’s signed. These include:
- the strata plan
- the by-laws in force for the scheme
- property certificates for the lot and the common property
- any strata management statement or strata development contract that applies.
Under the standard contract, the seller must also give you an information certificate (strata) from the owners corporation at least 7 days before settlement. It confirms the levies payable, whether they’re up to date and other financial details. Since 1 April 2026, it must also disclose any embedded or exclusive supply network, such as a building-wide electricity or hot water arrangement.
These documents tell you a lot, but not everything. They won’t show you the minutes of recent meetings, disputes, defect reports or how healthy the capital works fund is. That’s where a strata report comes in.
Get a strata report
A strata report (or strata inspection report) summarises the owners corporation’s records. A buyer can inspect them with the owner’s permission, and most buyers use a specialist strata search company. The cost varies with the size of the scheme and the provider.
What to look for in a strata report
- The levies on the lot, and whether they’re paid up to date.
- The balance of the administrative fund and capital works fund, and whether the 10-year capital works fund plan looks realistic.
- Any special levies that have been raised or are being discussed.
- Minutes of recent general meetings and committee meetings.
- Building defects, water leaks, cladding or fire safety orders, and any legal action involving the owners corporation.
- Building insurance, and any recent claims.
- By-law breaches or disputes, particularly about pets, noise, parking or short-term letting.
Order the report before you exchange, or make your purchase subject to a satisfactory report. If you’re buying at auction, you have to do it before the auction because there’s no cooling-off period.
Levies and special levies
Every owner pays regular contributions, usually quarterly, into two funds:
- the administrative fund, for day-to-day running costs such as cleaning, insurance and strata management
- the capital works fund, for major repairs and replacements, guided by a 10-year capital works fund plan.
If the funds fall short, the owners corporation can raise a special levy. These can be large, especially for older buildings or buildings with defects.
Who pays which levies
Under the standard NSW contract, regular levies are adjusted at settlement, so you each pay your share for the period you own the lot. Our guide to settlement adjustments explains how. For other contributions, such as special levies, the seller pays those determined on or before the contract date, even if they’re payable in instalments after settlement. You pay those determined after the contract date.
That’s why a special levy that’s being discussed but hasn’t yet been voted on is a real risk. If it’s approved after you sign, it’s yours. The standard contract does give you a right to rescind in limited cases, including where certain special expenses of the owners corporation are more than 1% of the price, but it’s much better to find out early.
By-laws: pets, renovations and short-term letting
By-laws are the rules of the scheme, and they bind you as soon as you become an owner. Read them carefully, especially if you have pets, plan to renovate or want to rent the unit out.
Pets
Since August 2021, a by-law that unreasonably prohibits keeping an animal has no effect. The owners corporation can still deal with an animal that causes an unreasonable nuisance.
Renovations
- Cosmetic work, such as painting inside your lot or hanging pictures, generally doesn’t need approval.
- Minor renovations, such as a kitchen renovation or new floors, need approval by a general resolution, or by the committee if a by-law allows.
- Major renovations, such as structural or waterproofing work, need a special resolution of the owners corporation.
See the NSW Government’s guide to strata renovations for more detail.
Short-term letting
An owners corporation can pass a by-law banning short-term rental accommodation, but only where the lot isn’t the host’s principal place of residence. If you’re buying to rent out on a short-term platform, check the by-laws first.
Building defects and new buildings
Defects are one of the biggest risks in strata, particularly in newer apartment buildings. NSW has several protections:
- Under the strata building bond and inspections scheme, developers of new residential strata buildings not covered by home building compensation insurance (generally buildings of four or more storeys) must lodge a bond of 2% of the contract price. Independent inspections are carried out to identify defects, and the bond can be used to fix them. A planned increase to 3% has been deferred to 1 July 2028.
- Building Commission NSW regulates new residential apartment buildings and can issue orders to stop work or fix serious defects.
- Laws to introduce 10-year defects insurance for new apartment buildings have passed parliament, but no start date has been set yet.
If you’re buying in a new or recently built scheme, ask whether defect reports have been prepared, whether any rectification orders apply and how the owners corporation is dealing with them. If you’re buying off the plan, read our guide to buying off the plan in NSW.
Recent changes to NSW strata laws
NSW has been reforming its strata laws in stages since 2025. Changes that matter to buyers include:
- strata managing agents must now disclose commissions and conflicts of interest
- levy notices must include a statement about financial hardship, and owners can ask for a standard levy payment plan
- from 1 April 2026, capital works fund plans must be in a standard form, and information certificates must disclose embedded networks
- new penalties and further strata manager disclosure rules started on 23 October 2026.
More changes are planned for 2027, including a maximum three-year term for strata management contracts. The NSW Government’s strata laws page tracks what’s in force.
Cooling-off and exchange
On a private sale of residential property in NSW, you usually get a 5 business day cooling-off period after exchange, or 10 business days for an off-the-plan contract. If you cool off, you forfeit 0.25% of the price. There’s no cooling-off if you buy at auction, or if you waive it with a section 66W certificate.
Before you exchange
- Get the contract reviewed, including the strata plan, by-laws and any special conditions.
- Order a strata report and read the last two years of minutes.
- Ask the agent whether any special levy, major works or legal action is planned.
- Check the car space and storage are part of your lot, or covered by an exclusive use by-law.
- Confirm your lender is happy with the building, as some lenders restrict lending on small units or certain buildings.
Frequently asked questions
What is a strata report and do I need one?
A strata report summarises the owners corporation’s records, including levies, funds, meeting minutes, defects and disputes. It isn’t legally required, but it’s the best way to find out about problems the contract won’t show you.
Who pays a special levy if I buy a unit?
Under the standard NSW contract, the seller pays special levies determined on or before the contract date, and you pay those determined after it. Check the minutes for any levy being planned before you sign.
Can a strata scheme ban pets in NSW?
A by-law that unreasonably prohibits keeping an animal has no effect. The owners corporation can still take action if an animal causes an unreasonable nuisance.
Do I need approval to renovate my unit?
Cosmetic work generally doesn’t need approval. Minor renovations need a general resolution or committee approval, and major or structural work needs a special resolution of the owners corporation.
Is there a cooling-off period when buying a strata unit?
Usually yes. On a private sale it’s 5 business days, or 10 business days off the plan. There’s none at auction or if you sign a section 66W certificate.
Buying a strata property?
Talk to our property team
Property & Conveyancing
Our team can review your contract and strata documents, check the strata report with you, flag levies, by-laws and defects that matter, and handle your purchase through to settlement.
This article is general information only and is not legal advice. It reflects NSW law at the date of publication. Please contact us for advice about your circumstances.
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