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Before You Buy a North Sydney Apartment: Strata Checks Before You Buy

Hands exchanging keys against a modern apartment building.

What Strata Checks Should You Complete Before Buying a North Sydney Apartment?

Buying an apartment involves more than inspecting the rooms, checking the location and arranging finance. You are also buying into a strata scheme and becoming a member of its owners corporation.

This means sharing responsibility for common property and contributing to the costs of maintaining the building. The scheme’s finances, by-laws, insurance, maintenance history and plans can all affect your ownership experience.

If you are considering an apartment in North Sydney or surrounding areas such as Neutral Bay, Mosman, St Leonards, Waverton, Cammeray or Lindfield, completing the appropriate strata enquiries before signing can help you make a properly informed decision.

Understand What Strata Ownership Includes

When you purchase a strata apartment, you generally own the individual lot shown on the strata plan. You also share ownership of common property with the other lot owners.

Common property may include parts of the building such as:

  • Entrances and hallways
  • Lifts and stairways
  • External walls
  • Roofs
  • Gardens
  • Shared driveways
  • Visitor parking
  • Recreational facilities
  • Other shared building areas

The exact boundaries between a lot and common property depend on the registered strata plan and applicable strata laws. Buyers should not assume that every area connected to an apartment belongs exclusively to that lot.

Car spaces, storage areas, balconies and courtyards should be checked against the title and strata plan.

Obtain a Strata Report

A strata report provides access to records maintained for the strata scheme. It can help you understand how the building is managed and whether significant financial, maintenance or administrative matters have been recorded.

Depending on the records available, a report may include:

  • Annual and general meeting minutes
  • Financial statements
  • Administrative fund balances
  • Capital works fund information
  • Current levies
  • Special levies
  • Insurance details
  • By-laws
  • Building reports
  • Recorded defects or maintenance issues
  • Disputes involving the owners corporation
  • Proposed building work
  • Strata management agreements

A strata report should be read carefully rather than treated as a simple box-ticking exercise. Meeting minutes can provide important context about matters being discussed by owners, even where no final decision has been made.

Eastside Legal has further information about what a strata report may reveal.

Review the Scheme’s Financial Position

Strata owners generally contribute regular levies to fund the operation and maintenance of the scheme.

The administrative fund is used for recurring expenses, while the capital works fund is intended to meet major or longer-term expenditure.

Before purchasing, consider:

  • Current quarterly levies
  • The balance of each fund
  • Planned capital works
  • Outstanding levy contributions
  • Recently approved expenditure
  • Existing or proposed special levies
  • Whether past expenditure has significantly reduced the scheme’s funds

A high fund balance does not automatically mean the scheme is well managed, and a lower balance does not necessarily prove that a building has financial problems. The figures should be considered together with the building’s age, condition, maintenance requirements and capital works plan.

Special levies deserve particular attention because they can create an additional cost for lot owners beyond their regular contributions.

Read the By-Laws Before You Commit

Strata by-laws regulate how owners and occupiers use their lots and common property.

They may address matters such as:

  • Pets
  • Parking
  • Noise
  • Smoking
  • Moving into or out of the building
  • Use of common facilities
  • Flooring
  • Renovations
  • Appearance of lots
  • Short-term rental accommodation

Do not assume that your intended use of the property will be permitted. If you plan to renovate, keep a pet, install flooring or use a particular parking or storage area, review the relevant by-laws before purchasing.

Some alterations may also require approval from the owners corporation, even when the work is entirely inside the apartment.

The NSW Government’s strata guidance provides current information about by-laws, renovations, finances and living in a strata scheme.

Look for Building and Maintenance Issues

A strata report may contain references to defects, water penetration, fire safety, lift repairs, concrete deterioration or other maintenance concerns. The presence of an issue does not by itself establish its seriousness or the likely repair cost.

Important questions include:

  • Has the problem been professionally investigated?
  • Has a repair method been approved?
  • Are quotations or expert reports available?
  • How will the work be funded?
  • Is litigation or an insurance claim underway?
  • Has a special levy been proposed?
  • Are further investigations required?

A strata records inspection is not the same as a physical building inspection. Depending on the property, buyers may need advice from a building inspector, engineer or another appropriately qualified professional.

Consider the 2026 NSW Strata Changes

New NSW strata reforms commenced on 1 April 2026. They introduced standard forms for initial maintenance schedules and 10-year capital works fund plans.

For qualifying multi-storey schemes, initial maintenance schedules and initial levy estimates must also be independently reviewed and certified by a quantity surveyor.

The reforms also require information about exclusive supply arrangements, sometimes called embedded networks, to be included in strata information certificates.

These changes are intended to improve consistency and transparency, particularly in newer schemes. However, buyers should still review the actual records available for the building rather than if legislative requirements remove the need for due diligence.

Current details are available through NSW Fair Trading’s summary of the strata reforms.

Have the Contract and Title Reviewed

The strata report is only one part of the purchasing process. The Contract for Sale and title documents also require review.

A contract review before signing may identify:

  • The legal description of the lot
  • Car spaces and storage lots included in the sale
  • Easements, covenants or restrictions
  • Special conditions imposed by the seller
  • Settlement requirements
  • Proposed strata changes disclosed in the contract
  • Adjustments for strata levies and other outgoings
  • Any disclosed notices or orders

The legal review does not determine the physical condition or market value of the apartment. Those issues may require separate inspection and valuation advice.

Questions to Ask Before Buying

Before committing to a North Sydney strata property, ask:

  1. What are the current quarterly levies?
  2. Is a special levy payable or being considered?
  3. What major work is included in the capital works plan?
  4. Are defects or significant repairs recorded?
  5. Are the building’s insurance arrangements current?
  6. Do the by-laws permit your intended use of the property?
  7. Are the advertised car space and storage area included on title?
  8. Are any disputes, claims or legal proceedings recorded?
  9. Does the contract contain unusual special conditions?
  10. Do you need additional building, engineering or taxation advice?

The answers should be considered together. No single document provides a complete picture of a strata scheme.

Frequently Asked Questions

Is a strata report compulsory before buying an apartment?

A buyer is not generally required to obtain a strata report, but it is an important due-diligence step. Without reviewing the records, the buyer may have limited information about levies, finances, by-laws, maintenance and recorded disputes.

What is a special levy?

A special levy is an additional contribution raised by the owners corporation when regular levy funds are insufficient for expenditure. The amount, payment dates and purpose are determined by the relevant resolution.

Can an owners corporation stop an apartment renovation?

Different approval requirements apply depending on the type of work. Some cosmetic work may not require approval, while minor or major renovations can require formal approval under the strata legislation and the scheme’s by-laws.

Does a strata report include a building inspection?

No. A strata report examines the scheme’s available records. A building inspection assesses the physical condition of the property. Buyers may require both.

Who pays strata levies after settlement?

The contract settlement adjustments ordinarily allocate relevant strata contributions between the seller and buyer. After settlement, the new owner becomes responsible for levies applying to their ownership period.

Buying a Strata Property in North Sydney?

An apartment may look suitable during an inspection, but its strata records and contract can reveal obligations that are not visible inside the property.

Eastside Legal assists buyers with contract reviews, strata-related enquiries and the legal steps required to complete a NSW property purchase.

Speak with our North Sydney conveyancing lawyers before signing a contract so you understand the property, the strata scheme and your legal obligations.

This article provides general information only and does not constitute legal, financial, building or taxation advice.

Essential Strata Checks for North Sydney Apartment Buyers

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