Buying a Strata Title Unit: A Buyer's Checklist

When you buy a strata title unit, you are not just buying four walls and a title reference. You are buying a lot on a strata plan, a share of the common property that comes with it, and a place in an owners corporation that manages the whole building alongside every other owner. That structure changes what your conveyancer needs to check before you exchange, and it is worth understanding the differences before you start inspecting apartments.

What Makes a Strata Purchase Different

A standard residential purchase of a standalone house mainly involves a title search, council and planning checks, and a review of the contract of sale. A strata purchase involves all of that plus a second, parallel due diligence process focused on the building and the owners corporation that runs it. Common property such as lobbies, lifts, gardens, roofs and driveways is owned collectively, and every lot owner contributes to its upkeep and shares in decisions about it. That collective structure is what a buyer really needs to understand before committing to a unit.

Ordering and Reading the Strata Report

A strata report pulls together the scheme's records, including recent meeting minutes, financial statements, insurance details, by-laws and any notices of upcoming works or disputes. It is one of the most important documents in the transaction, because it can reveal issues that a physical inspection of the unit would never show, such as a long-running dispute with a neighbouring lot or a defect claim against the builder. Our guide to strata reports covers what should be included, and our separate checklist for reviewing a strata report walks through how to read it methodically rather than skimming the summary page.

Checking the Funds and Any Special Levies

Every strata scheme holds an administrative fund for day-to-day running costs and a capital works fund (sometimes called a sinking fund) for larger, planned expenses like repainting or lift replacement. Reviewing the balances and the forecast spending in these funds tells you whether the building is being maintained properly or whether owners are likely to face a special levy soon. Special levies raised to cover unexpected repairs, such as those explained in our article on body corporate special levies discovered after purchase, can catch new owners off guard if this step is skipped. It is also worth confirming that the seller's own levies are up to date, since overdue strata fees at settlement need to be adjusted properly between the parties.

By-Laws and What You Can and Cannot Do

Strata by-laws set the rules for the building and can cover anything from pet ownership and renovation approval to parking, noise and whether short-term letting is permitted. These rules bind every owner, present and future, and they are not something a standard contract of sale will highlight for you. Our explainer on strata by-laws sets out how they are made, changed and enforced, which matters if your plans for the property, such as installing flooring or running the unit as a holiday let, depend on what the by-laws allow.

Building Condition, Defects and Insurance

Because the building envelope and structure are common property, an individual lot owner cannot simply repair a defect and send the seller a bill. Defects need to go through the owners corporation, which is why the strata report's record of any current defect claims, cladding assessments or building disputes matters so much. Building insurance for a strata scheme is arranged and paid for collectively through the owners corporation certificate, which also confirms whether that cover is current and adequate, rather than something each owner organises individually as they would for a standalone house.

Exclusive Use Areas and Lot Entitlements

Many units come with a car space, storage cage or courtyard that feels like part of the lot but is technically common property subject to an exclusive use by-law. It is worth confirming exactly what is included and on what basis, since exclusive use rights can occasionally be varied by the owners corporation. Your lot entitlement, meanwhile, determines both your share of the levies and your voting weight at meetings, so a unit with a larger entitlement will generally cost more to hold but also carry more say in how the building is run.

Reading Meeting Minutes for Red Flags

Minutes from recent annual and extraordinary general meetings are often the most revealing part of a strata report, because they show what owners are actually discussing and disputing, rather than just the scheme's formal financial position. Recurring complaints about a leaking roof, an ongoing dispute with a neighbouring lot over noise or renovations, or repeated deferral of a vote on major works are all signs worth following up before you commit. A single mention of an issue in passing is less concerning than the same issue appearing meeting after meeting without resolution, since that pattern usually points to a problem the owners corporation has struggled to address.

Building This Into Your Contract Timeline

Strata due diligence takes time to do properly, so it needs to be factored into your cooling-off period or pre-exchange checks rather than left until the last minute. A methodical pre-purchase process, similar to the one described in MoneySmart's guide to buying a house, helps make sure the strata review sits alongside your finance and building checks rather than being squeezed out by them. A conveyancer experienced with strata schemes in your state will know which documents to request first and what typically causes delays in getting them back from the strata manager.