Strata Contract Review
Buying into a strata, owners corporation, or body corporate scheme means inheriting a share of the building’s finances and decisions. The contract attaches strata search results, by-laws, levy notices, and minutes — and the issues hidden in those documents can cost thousands a year. Realestate Lens reads them as a system, not a list.
Why this matters for buyers
A strata building with a healthy admin fund, a funded capital works plan, and reasonable by-laws is a manageable purchase. A building with depleted funds, open litigation, or restrictive by-laws can cost tens of thousands a year more than expected. Pre-contract review surfaces the difference.
What we check
The clauses, disclosures, and risks specific to strata contract review.
Quarterly levies and special levies
We extract the admin fund and capital works (sinking) fund levies and compare against the building age and amenities. We flag recent special levies and the reason given.
Capital works fund balance
An old building with a near-empty capital works fund is a future special-levy risk. We flag this clearly and explain the implication.
By-laws
We extract by-laws and flag restrictions on pets, short-term letting, renovations, parking, and noise. By-laws that conflict with buyer intent are a red flag.
Recent EGM/AGM resolutions
We extract recent special resolutions, including those relating to building works, financial decisions, and disputes.
Insurance
We confirm the strata corporation’s building and public liability insurance is current and at the required sum insured.
Litigation and disputes
We surface any disclosed strata litigation, defect claims, or NCAT/QCAT/VCAT proceedings.
Maintenance plan and 10-year forecast
Where a 10-year capital works plan is attached, we extract the planned spend and flag where the fund balance is too small to cover it.
Embedded networks and utilities
Some strata schemes lock owners into long-term embedded electricity, gas, or hot water contracts. We flag these as ongoing cost risks.
Red flags we routinely surface
Real-world examples the risk framework looks for in this contract type.
- Sinking fund balance of less than 1 year of the 10-year plan’s annual spend
- Special levy raised in the past 12 months for unbudgeted works
- By-law prohibiting pets in a building marketed as ‘family-friendly’
- Open NCAT / VCAT / QCAT proceedings against the strata corporation
- Building defects litigation against the original developer disclosed in minutes
- Embedded network locking owners into a multi-decade utility contract
- Insurance sum insured below current rebuild cost
- By-law prohibiting renovation works of any kind without written common property approval
Strata Contract Review FAQ
Other contract types
Realestate Lens reviews every common Australian residential contract type.
Not legal advice
Realestate Lens is a first-pass risk report. Always have your contract reviewed by a qualified Australian solicitor or conveyancer before exchange. See how we handle your contract.
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