Buying an Apartment or Townhouse in NSW? The Strata Rules Have Changed

Found the perfect apartment?

Great location.

Nice kitchen.

Good-sized balcony.

Reasonable price.

Before you sign the contract, though, there is another part of the property you need to investigate:

the strata scheme.

Because when you buy a strata property, you aren't only buying what's inside your four walls.

You are buying into the financial and legal affairs of the owners corporation as well.

And NSW strata laws have recently changed.

New NSW strata laws commenced in 2026

A further stage of NSW strata reforms commenced on 1 April 2026.

The changes affect strata schemes and introduce additional requirements aimed at improving transparency, maintenance planning and developer accountability.

This matters for anyone buying an apartment, townhouse, villa or other strata property.

More information about future repairs and costs

One important reform relates to 10-year capital works fund plans.

These plans help strata schemes identify major repairs, maintenance and replacement expenses that may arise over the coming years.

Under the 2026 reforms, schemes preparing or updating relevant 10-year plans must use a standard form.

Why should a buyer care?

Because the purchase price isn't the only cost of owning a strata property.

If a building has significant repairs coming and insufficient money available, owners may ultimately face increased levies or special levies.

More information in strata certificates

Changes have also been made to the information contained in strata information certificates.

From 1 April 2026, these certificates include additional information such as certain compliance action, recent and upcoming meetings and details relating to exclusive supply or embedded networks.

That can provide buyers with valuable information about what is happening within the scheme.

But documents are only useful if somebody actually reviews them.

Don't just look at the quarterly levy

A common question from buyers is:

"How much are the strata fees?"

That's important – but it isn't enough.

You should also consider things such as:

• how much money is held in the capital works fund;

• whether major repairs are planned;

• whether special levies have been raised or discussed;

• whether there are building defects;

• insurance;

• disputes;

• recent meeting minutes;

• by-laws;

• proposed expenditure; and

• the overall financial position of the scheme.

A property with relatively low quarterly levies isn't necessarily a bargain if the scheme is facing a major repair bill.

Read the by-laws too

Strata by-laws can regulate everyday issues such as:

• pets;

• parking;

• renovations;

• use of common property;

• noise; and

• smoking.

If you're buying because you want to renovate, bring your dog, install flooring or use a particular parking area, it is much better to understand the rules before you become the owner.

The apartment can be perfect while the strata scheme isn't

When inspecting a property, buyers naturally focus on the physical apartment.

But the financial and legal health of the strata scheme can be just as important.

Before you exchange contracts on a strata property, obtain advice about the contract and consider whether a strata inspection is appropriate.

At Neilson + Co Legal, we help buyers throughout the Hunter Valley understand exactly what they are buying before they sign.

Buying an apartment, townhouse or strata property in NSW? Let us review the contract before you commit.