What should you check when buying into a strata or community scheme in NSW?

Reviewed by a licensed conveyancer

Reviewed by

Cordell Smith

Last updated

July 24, 2026

A strata scheme is a form of ownership where you own your individual lot and share the common property with other lot owners under by-laws. When buying into a NSW strata or community scheme, check the levies, the scheme's finances, insurances and building defects like combustible cladding — a strata inspection report helps you assess these.

In detail

In our experience, the scheme's finances matter as much as the apartment itself — a good-looking building with a thin fund can hand you a five-figure special levy soon after you move in. The levies, the fund balances and the meeting minutes are where that risk shows up.

What matters you should be aware of if you are buying in a Strata or Community Scheme?

If you are buying in a Strata or Community Scheme, you should be aware of:

current and proposed periodic levies and any special levies;
financial status of the scheme (e.g. whether the strata/community title fund is healthy or there is a deficit) owners corporation decision making;
insurances (e.g. what is covered under strata/community title insurances and what you need to insure once you become the owner of the property);
building defects and works required on the common or association property, such as:
- the removal or replacement of external cladding identified as combustible;
- structural issues, e.g. cracks, water leaks etc;
which could result in significant levies being imposed on the lot owners;
history of works carried out on the common/association property and the lot being purchased that may be of interest to you;
the lot owners' rights and obligations under Strata By-laws, Community Management Statements (e.g. the requirements to obtain strata approval for renovation, keeping of pets, etc) scheme harmony including any past and ongoing disputes within the scheme.

Obtaining a Strata /Community inspection report can help in assessing these matters.

The report can be obtained through ordering an inspection of the Strata / Community Title records with a strata / community title inspector. It generally includes a history of the building or complex, the financial status of the scheme, current and proposed building works, special levies, past works history and any compliance issues.

The scheme's money — and special levies

A strata scheme runs two funds, and your quarterly levies feed both: an administrative fund for day-to-day running costs (insurance, management and routine maintenance) and a capital works fund for major, long-term works planned over the years. A thin capital works fund is a warning sign — it often means a special levy is coming to pay for big-ticket repairs.

On top of the regular levies, the scheme can strike a special levy for an unbudgeted or urgent cost, such as combustible-cladding rectification or facade repairs. As a general rule, a special levy struck before the contract date is the seller's responsibility, while one struck after it typically falls to the buyer — so check the strata records and recent meeting minutes for any levy on the horizon before you sign.

General information only — not legal advice. Conveyancing law varies by state and changes over time; confirm your situation with a licensed conveyancer or solicitor.

In practice · NSW

Buying into a NSW strata scheme in practice

In our experience, buyers looking at a NSW strata or community scheme focus almost entirely on the lot itself — the apartment or townhouse — and overlook that they're also buying into the scheme's finances and its obligations.

Common situations we see:

A building that presents well but sits on a scheme with a thin fund or a looming special levy, which can land on lot owners after settlement.
Buyers unaware of works required on common property — combustible cladding or structural issues among them — that could translate into significant levies.
Assumptions about renovations, pets or use that turn out to be restricted under the by-laws or Community Management Statement.

What we advise is ordering a strata or community inspection report before committing, so the scheme's financial status, levies, works history and compliance issues are on the table — not discovered later. The takeaway: in a strata scheme you're buying the scheme as well as the lot, so check its health before you sign.

Common questions

What is a strata inspection report, and why get one?

It's a search of the strata scheme's records — its finances, the state of its funds, current and proposed works, special levies, past works, and any compliance issues or disputes. It's the best way to see whether the building you're buying into is well run and defect-free before you're bound, so it's worth ordering before you exchange.

Who pays a special levy when buying an apartment in NSW?

As a general rule, a special levy struck before the contract date is the seller's responsibility, while one struck after it typically falls to you as the buyer. Check recent meeting minutes for any levy being discussed — a large one voted just after you sign can land on you.

Can a NSW strata scheme ban pets?

Generally no — a scheme can't impose a blanket ban on keeping pets; its by-laws can only step in where an animal causes an unreasonable interference with other residents. If pets matter to you, check the scheme's by-laws before you sign.

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