What to check before buying an apartment: strata and owners corporation
An apartment purchase has three connected parts: the lot and its alterations, the common property and shared services, and the scheme that governs and pays for the building. Get the right records inspection for your state, read several years of minutes and finances, compare the works plan with available funds, and check insurance and active defects. Ask your legal representative to explain how any current or proposed levy affects the contract.
- 01LotYour four walls: condition, services, alterations
- 02Common propertyEveryone’s walls: the fabric and systems the plan makes shared
- 03SchemeThe scheme: its money, its minutes, its decisions
Start with the registered plan, then read it with the legislation and scheme records.
Read the lot and the scheme together
The registered plan and state law define the lot/common-property boundary. Inspect the lot, understand owner alterations, and read scheme records for shared fabric, services, finances, insurance, disputes and decisions. Use the shared-building risk guide to connect each issue to its boundary, decision maker and funding path. Check:
- Maintenance / sinking fund balance: is there enough set aside for the building’s age and the works it will need?
- Special levies: any raised recently, or foreshadowed in the meeting minutes?
- Quarterly fees: the ongoing cost, and the trend. Are they rising, and why?
- Insurance: what does the scheme policy insure, for what declared value, with which excesses, exclusions, claims and valuation basis?
- Disputes & defects: litigation, building-defect claims, or major works on the horizon.
- By-laws / rules: restrictions on pets, renovations or short-term letting that may affect how you use or rent the apartment.
Where to find it
Available documents and disclosure routes differ by state. In Victoria, relevant owners-corporation information forms part of the Section 32 process; elsewhere, certificates, searches or records inspections take different forms. Commission the appropriate search early enough to review minutes, financials, maintenance plans, insurance, defects, disputes, notices and correspondence. Missing or thin records are a substantive evidence gap worth investigating.
The funding gap is the tell
A fund balance has meaning only beside the building's forecast and known works, levy income, arrears, liabilities and timing. A low balance may be appropriate after completed work or inadequate for imminent work; a high balance may still be insufficient for a large program. Liability for a special levy can turn on the resolution, instalment due dates, state law, disclosure, contract and settlement adjustments. Have the legal representative map each known or proposed amount to this contract.
Then check the building itself
Use scheme records for boundaries, decisions, funding, insurance and known projects. Use a physical inspection for the lot and accessible common areas. Three recurring apartment questions deserve attention:
Waterproofing and balcony membranes
Failed waterproofing in bathrooms and balconies is a recurring apartment defect category. Repair can cross common property and multiple lots, with costs funded through the scheme.
Combustible cladding
For towers and mid-rise buildings constructed in the 2000s–2010s, combustible cladding is a live issue. Check the owners-corporation records for a cladding assessment, any rectification works, and whether a related special levy has been raised or is foreshadowed. Cladding replacement is rarely cheap.
Builder defects
Newer buildings carry the risk of original builder defects, waterproofing, fire separation, structural and services issues that emerge in the first years. The minutes will often show whether defects have been identified, pursued, and resolved, or are still in dispute. See red flags by era for what newer buildings tend to hide.
Frequently asked questions
What should I check before buying an apartment?
Check the registered plan, owners-corporation records, maintenance or capital-works plan, funds, levies, insurance, by-laws, disputes and defects. Add a physical inspection of the lot and accessible common areas.
What is a special levy and why does it matter?
It is an additional contribution resolved under the applicable strata or owners-corporation process. Existing and proposed levies can materially change ownership cost; responsibility around a sale depends on the resolution, due dates, law, disclosure and contract.
Where do I find the owners-corporation information?
In the owners-corporation certificate and meeting minutes disclosed with the contract; in Victoria that means inside the Section 32 vendor statement. You can also commission a specialist strata report.
Is combustible cladding still a concern when buying an apartment?
For apartment buildings constructed in the 2000s–2010s it can be. Check the owners-corporation records for any cladding assessment, rectification works or related special levy, as the cost of replacement can be significant.
Do I still need a building inspection for an apartment?
Yes. Scheme records cover finances, governance and known projects. A building inspection covers accessible physical condition in the lot and agreed common areas. Use both evidence sets.
How this guide was researched
We split the purchase across your lot, the shared building, and the scheme that runs and funds it.
Limits: Terminology, boundaries, disclosure and liability differ by state and registered plan. Obtain state-specific strata and legal advice.
Sources
- What is an owners corporation?Consumer Affairs Victoria · accessed 2026-07-19
- Who is responsible for what in strataNSW Government · accessed 2026-07-19
- Changes to strata lawsNSW Fair Trading · accessed 2026-07-19
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