Strata living is a huge part of the NSW property market – especially across South West Sydney. But buying or owning in a strata scheme isn’t the same as buying a freestanding home. Along with your lot, you’re also stepping into a shared legal structure with rules (by-laws), shared assets (common property), and shared costs (levies).
This guide covers the key strata “must-knows” for buyers and current owners, plus the practical moments when getting advice early can save time, cost and stress.
Why this matters now
Strata living is expanding rapidly across NSW – particularly in South West Sydney, where new apartment and townhouse developments are reshaping the property landscape. As more buyers enter strata schemes, often for the first time, understanding the legal structure behind them has never been more important.
Recent research from the NSW Building Commission and Strata Community Association NSW found that over half of strata buildings across the state have experienced serious defects in common property, such as waterproofing failures, fire safety issues, and structural problems – many of which come with high financial and legal risks for owners.
In one recent example outlined in the Daily Telegraph, a Belmore apartment building was found to have 66 active defects, prompting urgent repairs and significant owner concern. These issues are no longer isolated cases – they’re part of a broader challenge affecting buyers, owners, and investors across Sydney.
With further reforms to NSW strata law already underway, now is the time for buyers and owners to understand how their rights and responsibilities fit within the bigger picture.
What is a strata scheme (in plain English)?
A strata scheme is a property ownership structure where you typically own:
- Your lot (e.g., your apartment/townhouse and anything that is legally part of the lot), and
- A shared interest (with the other owners) in common property (e.g., foyers, lifts, stairwells, roofs, driveways, external walls—depending on the strata plan).
The scheme is managed by the owners’ corporation (also called the body corporate in other states), which has the principal responsibility for managing the scheme.
The key terms you will hear
Owners corporation
The owners’ corporation is essentially “all owners together” and is responsible for managing the strata scheme.
Strata committee
A smaller group of elected owners that helps make day-to-day decisions and implement owners’ corporation resolutions (often working with the strata managing agent).
Strata managing agent
Sometimes appointed to handle administration, meetings, records, levies and coordination—depending on what functions are delegated.
The 5 documents that matter most
If you read nothing else, read these:
- Strata plan – shows lot boundaries and common property.
- By-laws – rules for living in the building (noise, pets, parking, renovations, flooring, short-term letting, etc.).
- Minutes and records – reveal what’s been happening (defects, disputes, upcoming works, levies, conflict).
- Financials – admin fund + capital works fund (and whether the scheme appears underfunded).
- Section 184 certificate – a formal certificate under the Strata Schemes Management Act that provides key scheme/lot information (commonly requested during a purchase).
Levies: what you’re really signing up for
Strata levies aren’t “optional fees” – they fund the building’s operations and future upkeep, including:
- day-to-day expenses (cleaning, gardening, minor repairs, electricity for common areas), and
- longer-term works via the capital works fund, supported by a 10-year plan requirement in NSW.
Red flags for buyers
- unusually low levies (can mean the building is underfunded),
- frequent “special levies”,
- repeated deferral of major works,
- ongoing defect discussions with no clear plan.
Repairs and defects: who is responsible?
A common strata pain point is: Is this my problem, or the owners’ corporation’s?
Generally:
- Lot owner maintains their lot (subject to what the strata plan defines).
- Owners’ corporations maintain and repair common property and can be exposed if common property maintenance is not handled properly. (This is an area where the details matter, including what is “common property” under your plan and what the relevant sections require.)
Tip: If defects or water ingress are detected, act promptly. In strata matters, delays can lead to larger disputes (and larger bills).
Renovations: Can the by-laws stop you?
Sometimes, yes – at least until you have the right approval pathway.
Many renovations (especially anything impacting waterproofing, structural elements, external appearance, or common property) can require:
- owners’ corporation approval, and/or
- a specific by-law (sometimes drafted for your works), depending on the scope.
The NSW Government recommends reviewing by-laws before buying to ensure the rules align with your lifestyle and plans.
Meetings and decision-making: why process matters
Strata decisions are made through meetings and resolutions. Meeting procedure issues can quickly become disputes—especially where:
- levies are raised,
- works are approved/refused,
- bylaws are created/enforced, or
- owners believe voting rights or notice requirements weren’t properly handled.
If you’re in a scheme where decisions feel chaotic or unclear, it’s worth getting advice early before positions harden.
Disputes: what happens if things escalate?
Strata disputes often start small (noise, parking, repairs) and then snowball. In NSW, mediation is compulsory for most strata disputes before the NSW Civil and Administrative Tribunal (NCAT) will accept an application, unless an exemption applies. NCAT is the main forum for many strata disputes in NSW and can make binding orders if a dispute can’t be resolved.
A common pathway looks like:
- Raise the issue directly / through the strata manager or committee
- Try internal resolution via the scheme’s processes
- NSW Fair Trading mediation (often required)
- NCAT (and sometimes courts), if it can’t be resolved
For buyers: a practical strata due diligence checklist
Before you exchange contracts, consider these steps:
1) Read the by-laws (carefully)
Do they suit your lifestyle and future plans (pets, flooring, visitors, parking, renovations)?
2) Get a strata report + building inspection
The NSW Government recommends a strata report and building inspection so you understand what you’re buying into.
3) Look for financial and governance warning signs
In records/minutes, scan for:
- significant arrears,
- repeated special levies,
- unresolved building defects,
- ongoing disputes,
- major upcoming works (roof, façade, waterproofing, lift upgrades).
4) Request key certificates/disclosures
A Section 184 certificate is commonly used in NSW conveyancing to obtain certified strata information.
5) Understand what you actually own
Your “lot” boundaries aren’t always intuitive—especially with balconies, courtyards, storage cages and parking.
For owners: how to stay protected (and reduce strata stress)
Pay attention to the paper trail
Minutes and records matter. If disputes arise later, the written history often shapes outcomes.
Don’t ignore common property issues
Water ingress, cracking, drainage, façade issues—these often involve common property and can become expensive if left unresolved.
Use the right process early
Approach issues through the strata manager/committee first, then mediation if needed (often required before NCAT).
Where Chidiac Legal fits in
At Chidiac Legal, we regularly assist with strata matters that overlap with broader property law, including by-law drafting and enforcement, defect and levy disputes, meeting procedure issues, and NCAT proceedings. We act for both lot owners and owners corporations, focusing on practical outcomes first, and represent clients in NCAT or court when needed.
As a Bankstown-based firm assisting clients across NSW, we also advise on property matters connected to strata and community schemes.
Ready to buy, sell, or deal with a strata issue?
Whether you’re buying into a strata scheme or managing an issue as a current owner, early legal advice can make all the difference. At Chidiac Legal, we help you understand your rights, minimise risk, and resolve issues before they escalate.
Visit our Property page to find out how we can support you with your strata matter.
