How to Read a Strata Report Before Buying an Apartment (2026)
Buying an apartment or townhouse in Australia means buying into a strata scheme - and that comes with a strata report. These documents can run 50–200+ pages of financial statements, meeting minutes, by-laws, and maintenance records. Most buyers barely skim them. That's a mistake.
## What Is a Strata Report?
A strata report (also called a Section 184 certificate in NSW, Section 109 in QLD, or Owners Corporation certificate in VIC) is a snapshot of the strata scheme's financial health, legal status, and maintenance history. It tells you what you're buying into beyond the four walls of your unit.
## The Numbers That Matter
**Administration Fund** - This is the day-to-day operating account (cleaning, insurance, management fees). A healthy admin fund should have at least 3 months of levies in reserve.
**Capital Works Fund (Sinking Fund)** - This is the long-term repair fund for major works like roof replacement, lift upgrades, or facade repairs. Check the balance against the 10-year capital works plan.
**Capital Works Plan** - By law, most strata schemes must have a 10-year plan forecasting major maintenance costs. If the plan shows a shortfall, a special levy is likely. Your share could be $3,000–$30,000+.
**Current Levies** - Check the quarterly levy amount. High levies might indicate ongoing expensive maintenance. Low levies might mean the building is underfunded.
## Red Flags to Watch For
**Sinking fund shortfall** - If the capital works plan projects a shortfall, someone has to pay for it. That someone is every lot owner - including you, if you buy in.
**Special levies (past or proposed)** - Check the AGM minutes for any discussion of special levies. A $50,000 facade repair split across 20 units is $2,500 per unit - and it can be much more for major building defects.
**Active litigation** - If the owners corporation is suing (or being sued), legal costs come from levies. Check for NCAT proceedings, building defect claims, or disputes with contractors.
**Building defect orders** - Check for any compliance orders from council or the building commissioner. Remediation of serious defects (waterproofing, cladding, fire safety) can cost hundreds of thousands - shared across all owners.
**High arrears** - If many owners are behind on levies, the scheme is cash-poor. This affects maintenance quality and can lead to special levies for the owners who do pay.
## By-Laws Worth Reading
Most buyers skip the by-laws. Don't. Check for:
- **Pet restrictions** - Some schemes prohibit pets entirely
- **Renovation restrictions** - You may need strata approval for internal work
- **Short-term letting** - Some by-laws prohibit Airbnb-style letting
- **Parking and storage** - Confirm what's allocated to your lot
## Upload Your Strata Report
Strata reports are complex. Upload yours to ReportWise and get a plain-English summary of the financial health, red flags, special levy risk, and specific questions to ask the agent or strata manager.