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Buying & Selling

What questions should I ask before buying into strata?

Short answer

Ask about the current levies and any planned special levies, the capital works fund and its 10-year plan, the building insurance, any known defects, the by-law restrictions that will apply to you, and whether the scheme has any current disputes. The answers tell you whether you’re buying into a healthy scheme or an expensive problem.

The money questions

  • What are the quarterly levies, and have any special levies been raised recently or are any planned?
  • How healthy is the capital works fund, and what does the 10-year plan forecast for major works?
  • Are there arrears across the scheme, or a history of levy shortfalls?

The building and rules questions

  • Is the building insured to full replacement value, and are there any claims or defect issues on record?
  • What do the by-laws say about pets, short-term letting, renovations and parking?
  • Are there current disputes or NCAT matters involving the owners corporation?

Getting straight answers

Many of these questions are answered in one pass by a strata inspection report, which reviews the owners corporation’s records for you. The quality of the answers is itself a signal: a scheme that can produce clear finances, minutes and by-laws on request is usually a scheme that’s run well. Where a self-managed committee runs on a platform such as Straita, that history — levies, funds, compliance and decisions — is already recorded and easy to hand over, so a buyer’s questions get straight answers instead of shrugs.

Primary sources