A NSW Strata Report is a detailed inspection of the records of a strata scheme. It helps buyers understand the financial health, management, and potential risks associated with purchasing a strata property before exchanging contracts.
A typical NSW strata report includes:
Financial Information
- Administrative fund balance
- Capital works (sinking) fund balance
- Levy amounts and payment frequency
- Whether there are any special levies planned or approved
- Any outstanding levies owed by the lot being purchased
- The owners corporation's annual budget
Building Maintenance & Repairs
- Current maintenance issues
- Major defects or recurring problems (e.g. waterproofing, roofing, concrete cancer)
- Planned maintenance and future works
- History of repairs completed
- Quotes obtained for upcoming repairs
Meeting Minutes
A review of recent Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) minutes, which may reveal:
- Resident complaints
- Noise or nuisance issues
- Building disputes
- Proposed upgrades
- Discussions about defects or litigation
Insurance
- Current building insurance policy
- Sum insured
- Public liability insurance
- Insurance claims history
Legal Matters
- Current or pending legal proceedings involving the owners corporation
- NCAT applications
- Defect claims against builders
- Disputes with owners or contractors
By-laws
- Pet by-laws
- Renovation rules
- Parking restrictions
- Short-term accommodation (Airbnb) rules
- Noise and behaviour requirements
Building Compliance
- Fire safety compliance
- Asbestos records (where applicable)
- Defect reports
- Engineering reports
- Building compliance notices
Information About the Lot
- Unit entitlement
- Exclusive use areas
- Parking and storage entitlements
- Any notices relating specifically to the lot
Management Information
- Who the strata manager is
- Managing agent details
- Committee members
- Whether the scheme is self-managed or professionally managed
Red Flags Often Highlighted
A good strata report will usually draw attention to issues such as:
- Low capital works fund balances
- High or increasing levies
- Upcoming special levies
- Water leaks or structural defects
- Defect litigation
- Frequent insurance claims
- Combustible cladding concerns
- Significant disputes between owners
- Poor financial management
Why is a strata report important?
For buyers, a strata report provides insight into the condition and management of the building information that isn't always obvious from the contract or a property inspection. It can help identify costly issues before you commit to purchasing. This is a report that our friendly team at Ezystep Conveyancing will help you with on your purchase of property journey.