Strata records inspection explained — reading the books before you buy a NSW apartment

The short version

A NSW strata scheme keeps its own records — meeting minutes, financial statements, insurance policies, correspondence and by-laws. A strata records inspection (often sold as a strata report or pre-purchase strata search) is a walk-through of those records before you commit. It's how you find out whether the building is well run, whether money is set aside for the repairs it will need, and whether a special levy, a defect or a dispute is waiting on the other side of settlement. The contract and the section 184 certificate give you headline figures; the records inspection is where the story behind them lives.

Your right to inspect the records

Under section 182 of the Strata Schemes Management Act 2015 (NSW), an owner, a mortgagee, or a person authorised by one of them can apply to inspect the owners corporation's records on payment of a fee. As a buyer you don't own the lot yet, so in practice the inspection is arranged with the seller's authority — often the vendor's agent gives access — or carried out by a professional strata search company acting on your behalf. Either way, the law gives someone in your position a route to the records; the point is to use it before you're locked in, not after.

What the records actually reveal

A thorough inspection goes well beyond the current levy figure. The things worth reading closely are:

• Meeting minutes. General meeting and strata committee minutes are the running diary of the building — what's been repaired, what's been argued about, what's been quoted and deferred. A special levy is usually discussed here long before it's struck.
• The two funds. The administrative fund balance and, more importantly, the capital works fund balance and its 10-year plan. A near-empty capital works fund in an ageing building is a warning that owners will soon be asked to top it up.
• Levy history and arrears. Whether levies have risen sharply, whether the seller is behind, and whether any special levy has already been raised.
• Building defects. Records of water ingress, cladding, structural or waterproofing problems — and, in a newer scheme, any building bond or defect rectification work on foot.
• Insurance. Whether the building is insured for its full replacement value, and whether any claims suggest recurring problems.
• Disputes and by-laws. Any Tribunal orders, legal action, or by-laws that would affect how you can live in the lot — pets, renovations, short-term letting, parking.

Why it matters more than the certificate

The section 184 certificate is a snapshot: it states the current levies, the fund balances and whether the seller is in arrears at a point in time. That's useful, but it doesn't explain why the fund is low, or that the committee has spent three meetings quoting a façade repair it hasn't yet funded. The records inspection is what turns a set of numbers into a picture of the building's health — and it's usually the difference between buying into a well-run scheme and inheriting someone else's problem.

It's especially worth doing in an older building, in any block with a history of leaks or cladding concerns, or in a new development where defects tend to surface in the first few years. For the extra checks that apply when the scheme itself is brand new, our off-the-plan NSW guide covers what to watch for.

What to check before you sign

1. Arrange the inspection early. Book it before you exchange, not after — a records inspection is only useful while you can still walk away or negotiate.
2. Read the last two years of minutes. Look for repeated repair quotes, deferred works and any mention of a special levy or major project.
3. Check the capital works fund and its plan. A healthy fund with a realistic 10-year plan is the clearest sign of a scheme that isn't storing up a bill for you.
4. Look for defect and insurance history. Recurring water or structural issues, or a building underinsured against its replacement cost, are red flags.
5. Read the by-laws that affect how you'll live. Pets, renovations, parking and letting rules bind you the day you settle.

Common questions

Is a strata records inspection the same as the section 184 certificate?

No. The certificate is a short official statement of levies, fund balances and arrears at a point in time; the records inspection is a review of the underlying minutes, accounts and correspondence behind those figures. They complement each other — most buyers want both. Our strata levies guide explains what the certificate discloses.

Do I have to do the inspection myself?

Usually not. Most buyers use a professional strata search company that inspects the records and sends back a written report, or ask their conveyancer to arrange one. You can inspect the records yourself where you have the right to, but a specialist tends to know what to flag.

What if a problem turns up after I've already exchanged?

That's exactly why the timing matters — once you've exchanged, your options narrow. A special levy or a debt that runs with the lot can become yours at settlement, so any adjustment needs to be sorted in the contract beforehand. Our deposit and settlement guide explains how adjustments work at completion, and the NSW contract review checklist pulls the strata checks together with everything else you'll want to look at.