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GuidesBuying & Selling Strata Apartments in Australia: The Complete 2026 Guide
Buying & SellingMay 5, 2026

Buying & Selling Strata Apartments in Australia: The Complete 2026 Guide

By UnitBuddy Team

Buying & Selling Strata Apartments in Australia: The Complete 2026 Guide

Buying & Selling Strata Apartments in Australia: The Complete 2026 Guide

Buying into a strata building is one of the largest financial decisions most Australians make, and it's also the one with the most invisible due diligence. The legal documents are technical, the financial picture is buried in five different reports, and the questions that matter most ("is this building well-run?", "is the building actually solvent at the levy level?", "are there hidden defects?") aren't directly answered anywhere in the standard pre-purchase paperwork.

This guide is the complete reference for what to look at before buying, how to read what you find, what's changing in 2026, and what sellers need to disclose. It's written for the people whose money is on the table (buyers, sellers, investors, family helping their kids get into apartments), not for the agents and conveyancers paid to facilitate the transaction.

How to use this guide

If you're about to make an offer, jump straight to the strata report and Section 184 sections. Those are the documents on the critical path. If you're earlier in the process and trying to understand what kind of building to look for, read top to bottom. If you're a seller, the disclosure section tells you what you'll be expected to provide.

If you're tracking the strata health of a building you're considering, or one you already own and want to improve before selling, that's exactly the kind of building life ledger UnitBuddy is built for. Every levy paid, every defect rectified, every capital works contribution accumulates into a record that becomes one of the most valuable parts of the building at sale time. Take a look.

Table of contents

  1. The 2026 reform context
  2. The pre-purchase document set
  3. Reading a strata report properly
  4. Section 184 certificates (NSW)
  5. Capital works fund and what it tells you
  6. Levies, special levies, and trajectory
  7. Building defects and your rights
  8. Buying off-the-plan and new developments
  9. Selling a strata apartment
  10. State-by-state quick reference
  11. Tools and templates for buyers and sellers

The 2026 reform context

If you're buying or selling a NSW strata apartment in 2026, the rules are not what they were 12 months ago. The most significant changes:

From 1 April 2026, NSW Section 184 certificates must disclose embedded networks, compliance orders, and meeting history. The single most important due-diligence document has become substantially more useful.

From 1 April 2026, NSW schemes must use the standard form 10-year capital works plan. Old plans are still in place but must be replaced when revised, meaning many buildings are working through a transition where buyer-due-diligence may catch a building either side of the change.

From 1 April 2026, developer handover obligations have strengthened significantly. Buyers of new apartments have more documented rights and remedies if the building doesn't match what was promised.

Strata Hub annual reporting (NSW) has expanded scope, creating more public information about each scheme.

For the full reform context:

The pre-purchase document set

The standard documents you should review (or have your conveyancer review) before signing:

The contract of sale. Standard property contract; for strata, it includes annexed disclosure documents specific to the scheme.

The strata report. Commissioned by the buyer (or the buyer's conveyancer), prepared by a strata search company. Inspects the books and records of the owners corporation. Costs $200–$500. This is the single most important pre-purchase document for strata.

Section 184 certificate (NSW) / equivalent in other states. A formal certificate from the owners corporation summarising key information.

Insurance certificate of currency. Confirms the strata insurance is current and identifies the sum insured, public liability limit, and excesses.

Plans and by-laws. The registered strata plan (showing lot boundaries) and the scheme's by-laws.

Minutes of recent meetings. Last 24 months of committee and general meeting minutes. These are often the most revealing part of the document set, because they show what's actually been happening rather than what's been formally reported.

Financial statements. Audited or compiled financial statements showing fund balances, income, expenditure.

Capital works plan. The 10-year forward plan, especially important post the 1 April 2026 reform.

For the deep-dive on what to look for in each:

Reading a strata report properly

The strata report is the closest thing to a "building health check" available pre-purchase. It's prepared by a strata search company that physically inspects the records held by the strata manager and produces a structured summary. Reports vary in quality, but a good one tells you:

Financial position: fund balances, levy history, special levies (past and pending), insurance status, debt or arrears.

Maintenance and capital works: recent works, planned works, identified defects, age and condition of major plant.

Disputes and litigation: current or recent NCAT/VCAT/QCAT matters, by-law disputes, builder/developer disputes.

Insurance and claims history: recent claims, premium trajectory, insurer continuity.

Meeting activity: committee composition, AGM resolutions, EGMs, voting patterns on major issues.

Compliance status: fire safety, capital works plan adequacy, registered by-law breaches.

Red flags worth slowing the purchase for:

Section 184 certificates (NSW)

The Section 184 certificate is a formal document issued by the NSW owners corporation summarising the scheme. It's required for sale in NSW; equivalent documents exist in other states under different names (e.g., body corporate certificate in Queensland, owners corporation certificate in Victoria).

From 1 April 2026, the NSW Section 184 certificate must disclose substantially more information than previously, including embedded networks, compliance orders, and meeting history. This makes the certificate considerably more useful as a due-diligence tool.

What the modern Section 184 covers:

For buyers, request the most recent Section 184 certificate before contract exchange. For sellers, ensure the certificate is current and accurate; misleading certificates can found post-sale legal action.

Capital works fund and what it tells you

The capital works fund (called the sinking fund in some states, reserve fund in WA) is the long-term reserve that pays for major works in the building over the next decade. It is the single best leading indicator of whether you'll face special levies as an owner.

What to look for:

Current balance. A healthy capital works fund typically holds 18–36 months of forward-looking annual contributions, plus a buffer for the next major scheduled item.

Projected trajectory. If the 10-year plan shows the fund going negative in any year, contributions are too low. Special levies are likely.

Recent special levies. A scheme that has raised one or more special levies in the past 5 years is signalling that contributions have been inadequate. Whether that's been corrected matters.

Reform compliance. From 1 April 2026, NSW schemes must use the standard form for capital works plans. A scheme still using the old form may face plan replacement costs.

Resale value implication. Apartments in buildings with healthy capital works funds command higher prices. Buyers do due diligence; a well-funded scheme is a substantial selling point.

Levies, special levies, and trajectory

Headline levies tell you what the apartment costs to hold today. Levy trajectory tells you what it's likely to cost over the next decade. Both matter.

What to ask for:

Current quarterly levy. Easy to find. Multiply by 4 for annual cost.

5-year levy history. Has the levy risen 3% per year (modest, in line with inflation) or 12% per year (a building under cost pressure)?

Special levies in the past 5 years. Frequency, size, and reason. Buildings that special-levy regularly are usually under-funding ordinary contributions.

Forward levy plan. The 10-year capital works plan should include forward levy assumptions. A plan that holds levies flat for 10 years while contributing to a $5M roof replacement is mathematically incoherent.

Insurance trajectory. Insurance is now the largest single driver of levy increases in many buildings.

Building defects and your rights

Buying into a building with defects is not necessarily a problem. Most buildings have some defects, and most are rectifiable. The question is whether the defects are documented, who's liable, and what the rectification timeline looks like.

What to check:

Statutory warranty status. New buildings (under 6–10 years depending on state) are covered by statutory warranties from the developer/builder. The strata report should identify which warranties remain available.

Active rectification programs. Are there current works underway, and how are they being funded?

Cladding and major structural issues. Buildings constructed 2010–2018 may have combustible cladding subject to ongoing rectification.

NCAT/VCAT/QCAT matters. Active tribunal proceedings may affect levies, capital works funding, or even legal title in extreme cases.

Buying off-the-plan and new developments

Off-the-plan purchases are a different category of risk. You're committing to a price now for an apartment that doesn't yet exist, in a building that hasn't yet been registered as a scheme, with a strata management arrangement chosen by the developer rather than the future owners.

The 2026 reforms have substantially strengthened buyer protections in this area:

For new-build buyers, the first AGM is the most important event in the building's life. It's where the developer's initial assumptions face the building as built, and where many of the patterns that will define the next decade of strata life get established.

Selling a strata apartment

For sellers, the principle is straightforward: the better-documented the building, the higher the sale price.

What to do before listing:

  1. Request a current Section 184 certificate (or state equivalent). Read it yourself. If anything is unflattering or unclear, address it before a buyer's conveyancer flags it.

  2. Update your apartment's records. Capital improvements you've made, recent renovations, contents insurance status. Buyers will ask.

  3. Check the strata insurance certificate. A current, comprehensive certificate is reassuring; a thin or out-of-date one creates buyer uncertainty.

  4. Review recent meeting minutes. Anything in the minutes that a buyer would query? Better to know in advance.

  5. Check capital works fund health. A healthy fund is a substantial selling point. If the fund is under-funded, consider whether to address this proactively rather than have it raised by buyer due diligence.

What sellers must disclose varies by state, but the general principle: material defects, pending special levies, current legal proceedings, and structural issues must be disclosed. Failure to disclose can found post-sale legal action.

For sellers caught in the middle of the 1 April 2026 NSW transition, the key is having a current Section 184 certificate that reflects the post-reform requirements. An older certificate may not satisfy a buyer's conveyancer for a contract exchanged after the reform date.

State-by-state quick reference

The pre-purchase document set varies by state. The principle is consistent (formal disclosure plus searchable records), but the names and content differ.

New South Wales

Key documents: Strata report, Section 184 certificate (post-1 April 2026: substantially expanded), insurance certificate, contract of sale annexures. Tribunal: NCAT.

Victoria

Key documents: Strata report, owners corporation certificate (Section 151), Section 32 vendor statement, insurance certificate. Tribunal: VCAT.

Queensland

Key documents: Body corporate disclosure statement, body corporate information certificate, contract of sale annexures. Tribunal: Commissioner for BCCM, then QCAT.

Western Australia

Key documents: Strata report, Form 28 certificate, Section 17 disclosure statement, insurance certificate. Tribunal: SAT.

South Australia

Key documents: Form 1 vendor disclosure, strata corporation certificate, insurance certificate. Tribunal: SACAT.

Tasmania

Key documents: Body corporate certificate, vendor disclosure documents, insurance certificate. Tribunal: Resource Management and Planning Appeal Tribunal / Magistrates Court.

Australian Capital Territory

Key documents: Section 119 certificate, owners corporation disclosure documents. Tribunal: ACAT.

Northern Territory

Key documents: Body corporate certificate, vendor disclosure documents. Tribunal: NTCAT.

For terminology mapping:

Tools and templates for buyers and sellers

The strata health of a building is the kind of thing that compounds over time but is invisible at any single point. UnitBuddy is built to make that compounding visible:

Explore the building life ledger · See pricing · Get started

Frequently asked questions

Should I commission a strata report myself or rely on the seller's?

Always commission your own. Strata reports for the seller may be designed to present the building favourably; an independent report commissioned by your conveyancer asks the questions a buyer needs answered.

What's the difference between a strata report and a Section 184 certificate?

The strata report is a third-party inspection of the books and records, prepared for the buyer. The Section 184 certificate is a formal document issued by the owners corporation itself. They cover overlapping but different ground: the strata report typically goes deeper into operational issues, while the Section 184 is the formal legal disclosure.

How much should I budget for strata levies on top of the purchase price?

Annual strata levies in Australian apartments typically range from $3,000 (older small building) to $15,000+ (large building with pool, gym, lift, etc.). The 5-year levy trajectory matters more than the headline number.

Can I negotiate the price down if the strata report reveals problems?

Yes. Strata report findings are a legitimate basis for re-negotiation, especially if they reveal information that wasn't disclosed in the contract. Cladding issues, pending special levies, and active legal proceedings have all reduced strata sale prices significantly.

What if the strata fund is under-funded?

You can still buy, but you should expect either rising levies or special levies in the coming years. Adjust your offer to reflect this, or look at other buildings.

Keep reading

This guide is one of seven pillar resources on UnitBuddy:

Or browse the full blog for everything we have published.

Last updated: 5 May 2026. UnitBuddy publishes general information for Australian strata owners, buyers, and committees. It is not legal, financial, or property advice. For advice specific to your transaction, consult a strata-experienced conveyancer or solicitor.

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