Buying a Strata Title Unit in NSW

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Buying a Strata Title Unit in NSW – A Sydney Lawyer’s Guide  

By CM Lawyers – Residential Property Lawyers in Marrickville, NSW 

Buying your first apartment or investment unit in NSW can be an exciting step—but strata properties come with unique legal responsibilities and risks that many buyers overlook. 

At CM Lawyers in Marrickville, we’ve helped thousands of clients purchase strata units across Sydney and the Inner West. This expert guide explains the legal process, key risks, and hidden costs of buying a strata title property, and how our team ensures your investment is secure. 

What Is Strata Title?   

Strata title is the most common form of ownership for apartments, units, and townhouses in NSW. When you buy a strata property, you: 

• Own your individual lot (the apartment or unit) 

• Share ownership of common property (lobbies, gardens, driveways, roofs, etc.) 

• Automatically become a member of the Owners Corporation (body corporate), which manages the building 

This shared ownership means strata properties come with extra legal obligations compared to standalone houses. 

The Legal Process of Buying a Strata Unit in NSW 

The conveyancing process for strata property includes additional steps to check the building’s financial and legal health. 

1. Pre-Purchase Checks 

   Before making an offer:

   1. 1. Get finance pre-approval.

      2. Arrange a strata records inspection report.

      3. Review recent AGM minutes and levies.
         
         

2. Contract Review

   Your lawyer must review the Contract for Sale of Land, which should include:

1. • Strata plan and title search 

   • By-laws and strata management statement 

   • Section 184 certificate (showing levies, insurances, and compliance) 

   • Zoning certificate (s10.7) and sewer/drainage diagrams 

We identify any red flags like unpaid levies, disputes, or non-compliant building work.

3. Exchange of Contracts

   Once you and the seller sign identical contracts and pay the deposit (usually 10%), the agreement becomes legally binding. 

   • Private treaty sales usually include a 5-business-day cooling-off period 

   • Auction purchases have no cooling-off period 
     

   We guide you through this stage to protect your deposit and meet NSW legal requirements.
   
   
   

4. Pre-Settlement Steps

   Between exchange and settlement, your lawyer will: 

   1. 1. Confirm all strata levies are paid and up to date

      2. Arrange payment of stamp duty 

      3. Coordinate with your lender and the seller’s solicitor 

      4. Prepare transfer documents and conduct final title checks 

5. Settlement and Registration

   On settlement day, your lender pays the balance, and you become the legal owner. We register your ownership at NSW Land Registry Services and ensure the Owners Corporation updates its records.

Key Legal Issues When Buying a Strata Property 

Buying a strata unit involves additional risks beyond the contract terms: 

• Special Levies – If major works (roof, lifts, fire safety) are planned, the Owners Corporation can raise special levies payable by all owners. 

• By-Laws – These rules may restrict pets, renovations, parking, or even flooring materials. 

• Defect Liabilities – Newer buildings may have unresolved defects or litigation with the developer. 

• Unpaid Levies or Arrears – You can become liable for levies owed by the previous owner. 

• Ongoing Disputes – Minutes from strata meetings can reveal ongoing disputes between owners or with contractors. 

At CM Lawyers, we review the strata records and contract to uncover these risks before you buy. 

Hidden Costs of Strata Ownership  

Strata property ownership comes with ongoing costs beyond the purchase price: 

• Strata levies – Regular contributions for maintenance, insurance, and building management 

• Special levies – One-off payments for major repairs or upgrades 

• Legal and conveyancing fees – For contract review and settlement 

• Stamp duty – Based on the purchase price 

• Council and water rates – Adjusted at settlement 

• Insurance – Contents insurance (the building insurance is covered by levies) 

We give you a clear picture of all expected costs before you commit. 

Learn more about The Hidden Pitfalls of Existing Tenancies: A Nightmare for Unprepared Buyers 

Why a Property Lawyer is Essential (Not Just a Conveyancer) 

Buying a strata property requires reviewing corporate documents and by-laws in addition to the contract. Only a solicitor can: 

• Provide legal advice if disputes exist 

• Identify risks in strata reports and by-laws 

• Advise on defect claims or legal proceedings affecting the building 

At CM Lawyers, we combine specialist property law expertise with efficient conveyancing to protect your purchase from start to finish.

We are here to help you to secure the Best Deal on Your Property Investment.  

Our Step-by-Step Service for Strata Buyers in NSW  

1. Initial Consultation – We explain the process and likely costs.

2. Contract and Strata Review – We analyse the contract and strata records to identify risks.

3. Negotiations – We request amendments to protect your interests.

4. Exchange of Contracts – We guide you through signing and deposit payment.

5. Finance and Pre-Settlement – We liaise with your lender, check levy status, and finalise figures.

6. Settlement – We complete the transfer and register you as the legal owner.

7. Post-Settlement Support – We ensure the Owners Corporation updates its records and provide legal advice if needed. 

Legal Pitfalls to Avoid

The most common mistakes buyers make with strata units include: 

• Not ordering a strata inspection report 

• Overlooking by-law restrictions (e.g., pets or renovations) 

• Failing to budget for special levies 

• Ignoring unresolved building defects 

• Exchanging contracts before getting legal advice 

We prevent these issues so your purchase is secure and stress-free. 

Why Marrickville Buyers Trust CM Lawyers    

• Local Knowledge – We understand Marrickville and Inner West strata properties. 

• Extensive Experience – Over 30 years in Sydney property law. 

• Full Legal Protection – More than just conveyancing. 

• Fixed Fees – Transparent pricing from the outset. 

• Clear Communication – We guide you step by step. 

Final Word: Buy with Legal Confidence

Buying a strata title unit in NSW is exciting—but it’s also complex. From hidden levies to restrictive by-laws, there are legal risks that can cost you dearly if overlooked. 

At CM Lawyers in Marrickville, we make sure your purchase is legally sound, fully protected, and stress-free—so you can focus on enjoying your new home or investment.