Buying into a strata property, whether an apartment, townhouse, or villa, comes with shared ownership, shared costs, and shared responsibilities.
Yet many buyers rush through the process without fully understanding the strata plan, which leads to costly surprises later.
In this article, we will share with you the most common strata plan mistakes buyers tend to overlook. Let’s dive in.
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Not checking the difference between the lot property vs. the common property
One of the most common mistakes buyers make when reviewing a strata plan is assuming they understand what parts of the property they actually own.
In strata living, boundaries are not always obvious, and overlooking them can lead to confusion or unexpected expenses.
A strata plan clearly defines two key areas: a lot property (what you own) and common property (shared ownership).
The lot property typically includes the internal spaces of your unit, such as internal walls, floor coverings, and fixtures like cabinetry and appliances. But depending on the plan, even these areas can have exceptions.
Common property, on the other hand, can include exterior walls, roofs, balconies, and windows. Additionally, it includes plumbing stacks and shared services, as well as driveways, gardens, pools, and hallways. These areas are maintained using strata fees, meaning you share responsibility with other owners.
Understanding these details before buying gives you a clearer sense of your responsibilities, rights, and future costs.
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Not reviewing building condition reports
Another major oversight buyers often make is failing to review the building’s condition reports before committing to a strata property.
These reports provide crucial insight into the building’s structural integrity, maintenance history, and any defects that may become costly down the track.
Even newer buildings can have hidden issues, and without proper review, buyers may unknowingly walk into waterproofing failures, structural defects, and cladding and fire safety concerns, among other things.
A building may look pristine on the surface, but the real story is often revealed in formal condition reports and strata records.
When buyers skip this step, they risk unexpected repair bills, high future levies, insurance complications, and many other headaches. To avoid these pitfalls, many buyers seek advice from professionals, such as CCS Legal, who can review strata documents, identify potential red flags, and clearly explain the legal and financial implications.
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Ignoring the strata by-laws
Many buyers get excited about a property’s layout, location, and price—but overlook one of the most important documents in strata living: the strata by-laws.
These rules govern everyday life in the building or complex, and ignoring them can lead to frustration, conflict, or unexpected restrictions after you move in.
Strata by-laws commonly cover noise restrictions, renovation limitations, and the use of common property, among other matters. Strata by-laws are not just technical paperwork.
They determine how comfortably you’ll be able to live in the property. Taking time to understand them before buying ensures the lifestyle you expect is actually allowed.
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Overlooking future special levies
Yet another common mistake buyers make when reviewing a strata property is failing to look closely at potential future special levies.
While regular strata fees cover day-to-day maintenance, a special levy is an extra payment owners must contribute, often running into thousands of dollars, when significant or unexpected expenses arise.
Special levies may be raised for major building repairs, structural or safety upgrades, legal disputes, or defect claims. Buyers who overlook this risk can face sudden, substantial costs shortly after moving in.
This is why reviewing strata financials is essential. Understanding the building’s financial health upfront can save you from costly surprises later.
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Skipping a full strata records inspection
Buyers also tend to skip a full strata records inspection. Many rely solely on the agent’s information, marketing material, or a quick overview of the strata report—missing the deeper details that reveal the true state of the building and its management.
A thorough strata records inspection uncovers important information such as committee meeting minutes, financial statements and budgets, maintenance logs and work orders, and other similar info.
Without reviewing these records, buyers may unknowingly walk into an array of issues. All of these issues directly affect the value, safety, and livability of the property.
A full inspection, done personally or through a professional strata records reviewer, ensures you get an accurate, transparent picture of the building. It allows you to make a confident, informed decision and avoid unexpected financial or legal troubles down the track.
Conclusion
Understanding a strata plan isn’t optional; it’s essential. By reviewing by-laws, financials, building condition reports, and responsibilities, buyers can avoid unpleasant surprises and make confident, informed decisions.
