When buying a unit, townhouse, or apartment, a strata report is just as important as a building and pest inspection. It provides a detailed overview of the building’s financial health, maintenance history, by-laws, and any existing issues within the strata scheme. Understanding these factors before you buy helps protect you from unexpected costs, disputes, and long-term building problems that could impact your investment. Below is a full breakdown of what a strata inspection report includes and why it matters.

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What Is a Strata Report?

A strata report (also known as a strata inspection report or strata records inspection) provides a full history of the building and essential information about the strata scheme. It is prepared by a licensed strata inspector and includes:

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• The building’s financial status

• Maintenance history, repairs, and past expenses

• Pending works or projects planned for the building

• Special levies and the likelihood of future levies

• 10-year Capital Works Fund Plan

• Copies of the by-laws

• Minutes of meetings and any ongoing disputes or compliance issues

• Insurance details and building valuations

 

The goal of the report is to give buyers transparency on the condition, costs, and overall management of the strata scheme—so you know exactly what you’re buying into.

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What to Look For in a Strata Report

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1. Financial Health of the Strata Scheme

​Financial stability is one of the most important factors to assess. A strata report shows:

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• The balance of the administrative fund (day-to-day expenses)

• The balance of the capital works fund (long-term repairs and upgrades)

• Whether quarterly strata levies are adequate

• Any history of special levies, which indicate cash shortfalls

• Whether there are unpaid levies by other owners

• Whether the building insurance is current, correctly valued, and updated within the last five years

 

Poor financial health can lead to unexpected costs for owners, especially if the building requires major repairs.

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2. Capital Works Fund ( Sinking Fund )

The Capital Works Fund shows how well the building is planning for long-term maintenance.

Key items include:

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• A legally required 10-year plan, established at the first AGM

• Reviews of the plan every five years

• Upcoming major expenses such as roof repairs, plumbing upgrades, painting, lift maintenance, or fire safety improvements

• Whether the current funds are sufficient to cover these works

 

A strong Capital Works Fund reduces the risk of special levies and improves the long-term value of the property.

 

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3. Strata By- Laws

By-laws outline the rules for living in the building and can affect your lifestyle. The report includes details on:

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• Pet ownership

• Noise restrictions

• Renovation approval processes

• Parking rules

• Smoking regulations

• Short-term letting (e.g., Airbnb)

• Common property usage

 

Every strata scheme has its own set of by-laws, so reviewing them helps you understand whether the building is the right fit for your needs.

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4. Major Building Defects

​A strata report highlights any serious structural or safety issues, such as:

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• Combustible cladding

• Concrete cancer

• Waterproofing failures

• Leaks in bathrooms, balconies, or roofs

• Fire safety non-compliance

• Unapproved building works

 

By reviewing past capital works and defect reports, you can identify recurring issues and potential risks

that may affect the building—and your future costs.

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5. Owner and Tenant Disputes

The minutes from committee meetings reveal:

• How owners and tenants interact

• The nature of ongoing complaints

• Noise issues, pet disputes, or parking problems

• How proactive (or reactive) the strata committee is

• Whether the building is well-managed or struggling with governance

 

A building with constant disputes may signal deeper management or community issues.

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How Much Does a Strata Report Cost?

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A strata inspection report generally costs between $300 and $400. Prices vary depending on the size of the building, the number of strata records, and the inspection provider.

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In some cases, the selling agent may already have a strata report available. These reports may be:

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• Available for under $100 upfront, and

• You only pay the full report cost if you proceed with purchasing the property.

 

This can be a cost-effective way to access a detailed strata report early without paying the full fee each time you inspect a property.

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