In short
You buy a lot and join a shared building with shared finances. What you can do inside the apartment is set by the by-laws and the Strata Schemes Management Act 2015 (NSW). What it costs you is set by the levies, the fund balances and the 10-year capital works plan.
What am I actually buying?
You own a lot and share the common property with the other owners through the owners corporation. Common property usually includes roofs, external walls, lifts, driveways, stairwells and services running through shared areas. The strata plan identifies lot boundaries, common property and unit entitlement, and unit entitlement drives both voting power and your share of levies.
What looks like part of the apartment on inspection is not always part of the lot. A balcony, car space or storage cage may be lot property, common property subject to an exclusive use bylaw, or a separate lot. The contract, the strata plan and the by-laws answer that. A walk through does not.
Where do I find the building's real financial position?
Three places, read together.
The strata information certificate issued under section 184 of the Strata Schemes Management Act 2015 (NSW) is the scheme's formal statement of a lot's position. Since 1 April 2026 it must disclose exclusive supply networks, meaning privately owned electricity, gas or internet arrangements, so you can see whether you may choose a provider or are locked into one.
An inspection of the owners corporation records holds the history: meeting minutes, fund balances, levy history, quotes for major works, insurance claims and defect reports.
The 10-year capital works plan predicts what is coming. A plan providing for a roof replacement or lift upgrade in three years, against a fund that will not cover it, points to a special levy.
A low quarterly levy is not automatically good news. In an older building with thin reserves it usually means the cost has been postponed, and it lands on whoever owns the lot when the decision is finally made. Waterproofing, balcony and facade issues, fire safety orders and cladding remediation generate the largest special levies. Where the records suggest any of them, the physical questions belong to a building inspector or engineer, and the statutory duty of care under the Design and Building Practitioners Act 2020 (NSW) may also be relevant.
Can I keep a pet, renovate, or let it short term?
By-laws vary between schemes. They cannot be harsh, unconscionable or oppressive, and the Tribunal can declare an invalid by-law under the Act.
On animals, section 137B provides that a by-law, or a decision made under a by-law, has no effect to the extent it would unreasonably prohibit keeping an animal on a lot. It is taken to be reasonable to keep an animal unless doing so unreasonably interferes with another occupant's use and enjoyment of their lot or the common property. A blanket pet ban in an older by-law set therefore does not have the effect it appears to have. Section 139A deals separately with assistance animals.
On short-term letting, section 137A allows a by-law made by special resolution to prohibit a lot being used for short-term rental accommodation where the lot is not the principal place of residence of the person granting the right to occupy. Such a by-law has no effect where the lot is the owner's principal place of residence. Planning rules operate separately.
On renovations, the Act and the by-laws distinguish cosmetic work, minor renovations and work needing a general meeting resolution. Flooring, wet areas, air conditioning and anything touching common property are the usual friction points. Repairs follow a similar split: owners are generally responsible for their own lot property and the owners corporation for common property.
How long do I have to change my mind?
Section 66S of the Conveyancing Act 1919 (NSW) sets the cooling off period. It ends at 5pm on the fifth business day after the day the contract was made, or the tenth business day for an off the plan contract. A purchaser who rescinds in that period forfeits 0.25 per cent of the price.
There is no cooling off period at auction, and buyers are often asked to waive it by giving a section 66W certificate. Waiving it removes the only unconditional exit, so the review has to happen before exchange.
Separately, section 52A of the Conveyancing Act 1919 (NSW) and the Conveyancing (Sale of Land) Regulation 2022 (NSW) require prescribed documents to be attached to the contract. Where they are not, the purchaser may rescind within 14 days after the contract is made, unless it has been completed.
What is different off the plan?
The vendor must attach a disclosure statement to the contract before it is made, including a draft plan and other prescribed documents. If the statement later becomes inaccurate in a material particular, notice of the changes must be served at least 21 days before completion. Deposits must be held in a trust or controlled money account rather than released to the developer.
Sunset clauses are constrained. A vendor cannot rescind under a sunset clause without the purchaser's written consent or an order of the Supreme Court of New South Wales, and that protection extends beyond registration of the plan to other sunset events, including the issue of an occupation certificate.
Which documents will answer these questions?
For the lot: the contract, title search, registered strata plan, and any exclusive use by-laws covering parking, storage or courtyards.
For the scheme: the section 184 certificate, an inspection of the owners corporation records, and meeting minutes.
For cost: fund balances, levy history, the 10-year capital works plan, quotes for proposed works, and any special levy raised or discussed.
For use: the consolidated by-laws and the renovation approval procedure.
For off the plan: the disclosure statement and attachments, the draft plan, draft by-laws, sunset provisions, and deposit arrangements.
Our buying a property page covers the general purchase process, and our guide to company title property in NSW covers the position where the apartment is not strata.
If you are reviewing a strata contract, a strata report or an off the plan disclosure statement, contact Biz Lawyers & Advisory or call 1800 893 836 before you exchange or sign a section 66W certificate.
This article provides general information only. It is not legal, financial, tax, building or engineering advice.
Primary sources
Law and guidance checked 20 August 2026.
