A buyer rang me last week, panicked. She’d settled on a sub-penthouse in Potts Point three months ago, and the body corporate had just hit her with a $42,000 special levy for facade remediation. She’d ordered a strata report. She’d “read it.” She still got blindsided.

This happens more than you’d think, even in the prestige bracket where buyers should know better. Strata reports are dense, boring and full of jargon. So people skim. Then a year later they’re paying for it.

After a quarter of a century selling Sydney apartments, here’s what I’ve learned about reading these things properly.

What a strata report actually contains

When you order a strata report (typically $250 to $450 from a search agent), you’re getting a snapshot of the owners corporation’s records. That includes:

• Minutes of recent AGMs and committee meetings
• Financial statements for the admin and capital works funds
• The strata plan itself
• By-laws
• Insurance certificate
• Any notices, orders or building defect reports
• Levy contributions and payment history

It’s not a building inspection. It tells you what the building has been talking about and spending money on. That’s useful, but you need to know what you’re looking for.

The seven things I tell every buyer to check

1. The capital works fund balance vs the building’s age.

A 25-year-old building with $80,000 in the capital works fund is concerning. A modern apartment block needs to be saving for lifts, paint, waterproofing, common area refurbishment, and increasingly cladding remediation. As a rough rule, I want to see capital works funds that look proportionate - something like $4,000 to $8,000 per lot for a 20-year-old building, more for older or more complex structures.

2. Recent special levies, and the language around them.

One special levy in the last five years isn’t necessarily a red flag. Three of them is a story. Read the minutes around each one - was it for an unexpected emergency, or a series of “we should have funded this years ago” moments?

3. Any reference to building defects, especially structural or waterproofing.

The Design and Building Practitioners Act has changed how defects get reported and pursued. Look for any mention of an engineer’s report, a building bond, or a defects rectification program. If you see the words “Class 2 building” with anything around the NSW Building Commissioner, pause and get advice.

4. Insurance valuation versus building cost.

Reinstatement costs have jumped dramatically in the last four years. A building insured at 2019 levels is underinsured in 2026. The minutes will usually show whether they’ve had a recent quantity surveyor valuation. If not, the building is likely under-insured and a future levy will fix it.

5. By-laws that might affect your lifestyle.

Pets, short-term letting, renovations, parking, smoking, balcony use. I had a buyer who bought a stunning Darlinghurst apartment without realising the by-laws prohibited any visible balcony furniture. He had a 12sqm balcony he could basically wave at.

6. Disputes and legal action.

NCAT proceedings, Supreme Court matters, neighbour disputes that keep recurring in minutes. Any of these signal a building with unresolved tension. Buildings with chronic conflict tend to defer maintenance, which costs you later.

7. The committee composition and turnover.

A strata committee that hasn’t changed in eight years can mean stability or it can mean an entrenched group running the building their way. High turnover can mean dysfunction. Both deserve a question or two.

What buyers in 2026 should especially watch for

A few things have changed in the last 24 months that prestige buyers in particular should know about.

Cladding remediation is still working through Sydney buildings. Many were assessed years ago, but some remediation programs have stalled on funding or contractor availability. If you’re looking at a building constructed between 2010 and 2018 with composite cladding, get specific clarity on its status.

EV charging infrastructure is starting to appear in committee minutes. Some buildings are funding it well, others are squabbling about whether to bother. If you drive an EV or plan to, this matters.

Sustainability upgrades - solar, LED retrofits, heat pump hot water - are being discussed and funded across better-managed buildings. Their absence isn’t a deal-breaker but tells you something about how forward-looking the committee is.

The mistake I see most often

Buyers read the strata report after they’ve emotionally committed. They’ve already imagined the dinner parties, picked out the rug, told their parents. The report becomes something to confirm the decision, not interrogate it.

If you’re serious about an apartment, order the report before you fall in love. Read it cold. Then go see the place again. You’ll notice things you missed.

When to bring in a professional

For anything above $1.5m, I think it’s worth paying a strata specialist (separate from the search agency) to actually interpret the report. They’ll spend an hour with you for $300 to $500 and tell you what the numbers mean in context. That’s cheap insurance against a $40,000 surprise.

Domain has some decent buyer guides on strata if you want a starting point, but nothing replaces having someone who reads these things every day walk through your specific building’s documents. I’ve also seen agencies start using AI tools to summarise strata documents quickly - the better implementations come from teams who think about the workflow properly, like the consulting work Team400 does for firms applying AI sensibly. The technology can flag patterns, but a human still needs to interpret what they mean for your purchase.

If you’re considering an apartment purchase and want to talk through strata risk before you commit, give me a call. After 25 years, I’ve seen most of what these reports try to hide.