Strata report explained: what it covers and what it leaves out

A strata report is the inspection many buyers arrange for an apartment, unit or townhouse that sits in an owners corporation. It is easy to assume it covers everything about the building. It does not, and the gaps are not a flaw: they are the edges of what an independent, visual inspection can do. This guide sets out both sides plainly, so you know what the report answers and who answers the rest.

For the whole picture of buying into an owners corporation, start with our guide on what to know before buying an apartment or unit in Victoria. This guide zooms in on the report itself.

What is a strata report for?

In Victoria, an apartment, unit or townhouse in a plan of subdivision belongs to an owners corporation (the older term is body corporate), which manages the common property and keeps records about the building. When you buy a lot, you buy into that structure. The building's condition and its paperwork affect you as much as the rooms you will live in.

A strata and owners corporation report is an independent, visual inspection you commission for your own information. It is not a statutory inspection, it does not replace any report the owners corporation arranges for the building, and it is not advice on whether to buy. It gives you a clear picture of what was visible, and a set of informed questions to take to the people who hold the answers.

What does a strata report cover?

Three things, in this order.

The lot. We inspect the visible condition of the rooms, wet areas, windows, doors and any balcony, terrace or courtyard that belongs to the lot, along with a car space or storage area where it can be reached. We look for signs of water entry, cracking, movement and poorly finished work, with photos supporting the key observations.

The common property you can reach. Entries, corridors, stairs, lifts and lobbies, car parks, gardens and the building's exterior as seen from the ground are inspected as far as access allows on the day. Visible signs that may relate to the wider building, such as staining on a corridor ceiling or cracking in a car park wall, are recorded.

The papers, for building-related points. Owners corporation papers can show what has been discussed, planned or spent on the building. We help you read the owners corporation certificate, recent meeting minutes, the rules and any maintenance plan for the building-related points, and we set them alongside what we saw. A leak discussed at several meetings, seen next to a stained ceiling, is a question worth asking before you commit.

What does a strata report leave out?

This is the half that buyers most often misjudge, so it deserves a plain list.

• Other lots. We cannot enter the apartment next door or above, so we cannot see whether a problem in your lot has a cause in theirs.
• Locked and restricted areas. Roof areas, plant rooms, lift shafts, service risers and locked storage usually need the owners corporation's permission. Unless access is arranged beforehand, they are listed as limitations.
• Anything concealed. The inspection is visual and non-invasive. Nothing is opened up, no fittings are removed, and what sits behind walls, under floor coverings or inside ceilings is not seen.
• The finances. Levies, budgets, fund balances and whether the owners corporation can afford the works it has planned are outside the report.
• The legal side. The contract, the legal and financial content of the owners corporation certificate, your rights and obligations as an owner, and any dispute between owners are matters for your conveyancer or lawyer.
• Engineering, asbestos and mould testing. Visible signs can be noted, but a strata report is not a structural engineering assessment and does not test materials. Where an observation points to a wider issue, the report can recommend an inspection of cracking and movement or another specialist.
• Services. Electrical, plumbing, gas, fire and lift systems are not tested. Those belong to licensed trades and to the owners corporation's own contractors.
• A verdict. The report cannot confirm that the building is free of defects, cannot tell you what the lot is worth and does not advise you on whether to buy.

Why are those things left out?

Three reasons, and it helps to know which applies to which gap.

Access. The inspection covers what can be reached safely on the day. Other lots and restricted areas are off limits unless someone with authority opens them, and even then only by arrangement. Telling us about the building beforehand lets us ask whether the agent or the building manager can open more.

Expertise and role. Reading minutes for building-related points is within what we do. Advising on levies, the fund or the contract is not, and saying so keeps the report honest. Likewise, a visual inspection can notice a crack; only a structural engineer can say what it means for the structure.

The nature of a visual inspection. Every report of this kind describes the property at the time of the inspection. Conditions change, concealed defects may exist, and a report is not a warranty, an insurance policy or a certificate of compliance. That is true of a building and pest check before buying of a house as well, and our guide to what inspections you need before buying a home in Victoria explains the edges across every kind of report.

How do you fill the gaps?

Each thing the report leaves out has someone who can answer it.

• The owners corporation or its manager: what is planned for the items the minutes discuss, who is paying for them, and whether locked areas can be opened for a second look.
• The selling agent: access to common areas that are normally locked, and questions for the vendor about the lot's history.
• Your conveyancer or lawyer: the contract, the owners corporation certificate, the levies and your obligations as an owner.
• Your accountant: the financial side of the purchase and the owners corporation's position, where that matters to you.
• A specialist: a structural engineer where cracking or movement is noted, or an asbestos or mould inspection where a material or a damp area deserves testing.
• Us: which observations are routine for a building of that kind and age, and which deserve a closer look before you decide.

Gathering the papers early makes all of this quicker. If the agent or the vendor cannot supply them, your conveyancer may be able to request them, and our property paperwork service can help you work out what exists and what is missing.

How do you use the report before you commit?

Read the scope and the limitations first, because they tell you how much of the building the report speaks for. Then read the lot, the common property and the notes on the papers in that order. Mark the items that need a question, and send each one to the person above who can answer it. Keep the decision yours: the report describes, and you decide.

Timing matters when you are buying, so tell us your key dates when you enquire and we will work around them where we can.

Send us the address, the lot number if you know it and any papers you have, and we will confirm the scope and provide a quote before anything is booked. If you are not sure whether we cover the building's suburb, check the service areas page or include the address in your enquiry. Not sure which inspection you need? Ask us on 0406 194 163 or send an enquiry and we will come back to you.

Sources and authorities

• Consumer Affairs Victoria: what an owners corporation is and what buying into one involves.
• Consumer Affairs Victoria: how owners corporations work, including rules, property maintenance and record keeping.
• Building and Plumbing Commission: what a building surveyor does, from issuing the building permit to inspecting the work at the mandatory stages.