Strata Reports and Owners Corporation Searches Explained

Buying an apartment or townhouse means buying into a shared ownership structure. The building, the common areas and the major systems are owned collectively by the lot owners. Decisions about maintenance, insurance and expenditure are made by an owners corporation (or body corporate in Queensland).

A strata report tells the buyer what they are walking into. A well-run scheme with healthy finances is a good place to own. A scheme with $400,000 in deferred maintenance and an active legal dispute is not. The report is how the buyer finds out which one they are buying.

What the Report Is Called in Each State

The same document goes by different names depending on the state.

State	Name	Governing Body
NSW	Strata Inspection Report	Owners Corporation
VIC	Owners Corporation Certificate (Section 151) plus inspection	Owners Corporation
QLD	Body Corporate Search	Body Corporate
WA	Strata Company Search and Inspection	Strata Company
SA	Strata or Community Corporation Search	Strata or Community Corporation
TAS	Body Corporate Records Inspection	Body Corporate
ACT	Owners Corporation Records Inspection	Owners Corporation
NT	Unit Title Corporation Search	Unit Title Corporation

In this guide, "strata report" is used as the umbrella term. The substance is the same across states: a review of the corporation's records to assess financial health, governance, maintenance history and risks.

What a Strata Report Covers

A strata report inspector attends the corporation's registered office (or accesses the records electronically) and reviews several years of records. The report typically covers:

• Financial statements for the last 2 to 3 years
• The administrative fund and capital works (sinking) fund balances
• Current levies and the levy history
• Recent and upcoming special levies
• Insurance policy details, including building sum insured and the last valuation date
• Minutes of meetings for the last 2 years
• Pending or recent litigation
• Major works completed and planned
• The 10-year capital works plan (where required by state law)
• By-laws and any recent by-law changes
• Pet, parking, short-term letting and renovation rules
• Disputes between lot owners or with the corporation
• Defects affecting the building
• Records of building approvals and certificates of occupancy

The inspector produces a written report (typically 15 to 40 pages) summarising the findings with photos of key documents. The report is the buyer's primary tool for understanding the scheme.

What the Report Will Tell You

The report answers six practical questions.

How financially healthy is the scheme. A healthy scheme has 6 to 12 months of operating expenses in the administrative fund and a capital works fund tracking to its 10-year plan. A scheme with negligible reserves is one major repair away from a large special levy.

Are special levies coming. Special levies are one-off contributions raised when planned funds are not sufficient. A $20,000 special levy on a $500,000 apartment is not unusual when the building needs re-cladding or major plant replacement. The report flags any resolved or proposed special levies.

What does the building actually cost to own. Quarterly or annual levies tell the buyer the recurring ownership cost beyond the mortgage. A 2-bedroom apartment in a building with a pool, gym and concierge typically has higher levies than a 6-unit walk-up.

Is the building insured. The corporation must hold building insurance. The sum insured should match a current replacement-cost valuation. An under-insured building is a major risk if it suffers significant damage.

Is the building maintained. Minutes and the capital works plan tell the buyer whether the corporation is actively maintaining the property or deferring it. Deferral compounds. A building that has not painted in 25 years is not saving money, it is accumulating a problem.

Are there active disputes. Litigation between lot owners or against the corporation, NCAT (NSW) or VCAT (VIC) matters, defect claims against the original builder and unresolved by-law disputes all show up in minutes and the report.

What It Costs in 2026

Strata report fees in 2026 typically range as follows.

Property	Typical Fee Range
Standard apartment in a registered strata scheme	$250 to $450
Larger or complex scheme (mixed use, multi-stage)	$400 to $650
Off-the-plan apartment (corporation not yet active)	Limited records available; disclosure statement is the primary tool

Some states charge separate corporation-issued certificate fees (the Section 151 certificate in VIC, for example). These are typically $100 to $200 and are payable to the corporation, not the inspector.

When to Commission the Report

The same timing rules as building and pest inspections apply. The report should be commissioned during the cooling-off period or while the contract is conditional on a satisfactory report. Off-the-plan and auction purchases need pre-contract or pre-auction inspection because there is no cooling-off in many states for auction purchases.

For an off-the-plan apartment, no historical records exist because the corporation has not formed. The buyer relies on the disclosure statement, the proposed budget, the strata plan and the by-laws. Once the building is registered and the corporation forms, a full strata report can be commissioned. This is worth doing in the 12 months after settlement to catch any early defects or governance issues.

Red Flags to Watch For

Specific items in a strata report that warrant attention before proceeding.

• Capital works fund below $50,000 in a building over 20 years old. Indicates deferred maintenance.
• A special levy raised in the last 3 years. Ask what it funded and whether more is expected.
• A 10-year capital works plan with major spend (re-cladding, lift replacement, waterproofing) flagged for the next 3 years. This means levies will rise.
• A defect claim against the original builder or developer. This is a sign of construction quality issues and the legal cost falls on lot owners.
• Active litigation by or against the corporation. Legal fees are paid from corporation funds.
• Mismatch between insured value and replacement cost. The corporation should have a current valuation (within the last 3 to 5 years).
• By-law disputes about short-term letting (Airbnb), pets or renovations. Indicates governance dysfunction.
• A change of strata manager in the last 12 months with no explanation. Worth a question to the agent or the new manager.
• Combustible cladding remediation pending. This has been an Australia-wide issue since 2017 and several states maintain registers of affected buildings.

None of these are automatic deal-breakers. All warrant a conversation with the conveyancer about how the contract should respond.

How to Choose a Strata Inspector

Three things matter.

Specialisation. Strata inspection is a specialist field. General property inspectors do not produce useful strata reports. Use a provider whose primary business is strata report inspection.

Local market knowledge. An inspector who reads 20 reports a month in your suburb will spot recurring patterns (a particular builder with defects, a particular strata manager with weak governance) that a national provider will miss.

Turnaround. Reports should be delivered within 3 to 5 business days of order. Faster turnaround is available at premium pricing if the buyer is up against a cooling-off deadline.

Avoid inspectors recommended by the selling agent. As with building and pest, independence matters. A buyers agent can suggest a strata inspector with no connection to the sale.

Using the Report to Decide

The report rarely produces a single yes-or-no answer. It produces a profile of the scheme that the buyer interprets against their own priorities.

A young owner-occupier buyer might be comfortable with a scheme that has a known capital works program funded by gradual levy increases. They plan to own for 10 years and want the building maintained.

A buyer planning a 3-year holding period might be less comfortable with the same scheme. They will pay the levies during their ownership and not see the benefit of the works completed after they sell.

A buyer who plans to renovate might be concerned about by-laws restricting renovations or requiring corporation approval for minor changes.

The report is data. The decision sits with the buyer, their conveyancer and any adviser they engage. Buyers should not seek personalised financial product advice from the strata inspector.

Frequently Asked Questions

How is a strata report different from a building inspection

A building inspection looks at the physical condition of the unit and (visible parts of) the building. A strata report looks at the corporation's records, finances and governance. Both are required for apartment purchases. Neither replaces the other.

Can I do a strata report myself

Most owners corporations allow lot owners (and prospective buyers with appropriate authorisation) to inspect records. In practice, paying a specialist for $300 is cheaper and faster than trying to interpret several years of minutes and financial statements yourself.

How current is the report

Reports rely on the records available at the corporation's registered office at the time of inspection. Most schemes lodge records reasonably promptly, but a small gap between recent decisions and what is on file is normal. The report should note the date range covered.

What if the report reveals a major issue after I have exchanged

If the contract is conditional on a satisfactory strata report and the issue is within the condition period, the buyer can usually terminate or renegotiate. If the contract is unconditional, the buyer is bound. This is why timing matters.

Do off-the-plan purchases need a strata report

Not at contract. The corporation does not yet exist. The buyer relies on the disclosure statement, the proposed budget, the draft strata plan and the by-laws. A strata report becomes available once the building is registered and is worth commissioning in the first 12 months of ownership.

Related Resources

• Building and Pest Inspections. The Australian Buyers Checklist
• Cooling-Off Periods State by State for Australian Buyers
• Conveyancing in Australia. What Happens Between Contract and Settlement

About AgentBridge

AgentBridge is a property distribution business that connects sellers and developers with a national network of more than 80 buyers agents across every Australian state and territory. Buyers agents on the panel routinely commission strata reports for apartment purchases and use the findings in price negotiation.

Last reviewed: 22 May 2026.