What Is the Difference Between a Building Inspection and a Strata Inspection?

A strata inspection reviews financial and administrative records but never physically examines the property. It will not identify defects, water damage, or structural issues in your unit. Similarly, a building inspection cannot reveal financial problems, special levies, or disputes within the owners corporation. For comprehensive protection, apartment buyers should obtain both inspections.

Building inspections for strata properties focus primarily on your individual lot. The inspector may comment on common property areas immediately adjacent to your unit, such as shared walls or balcony balustrades. However, comprehensive assessment of building-wide common property like roofs, facades, and car parks falls outside the standard scope. Strata inspections reveal planned works and existing reports on common property condition.

Special levies are charges beyond regular strata fees, often imposed for significant repairs like waterproofing, lift replacement, or facade remediation. These can amount to tens of thousands of dollars per lot. A strata inspection examines meeting minutes and correspondence to identify passed or proposed special levies. Building inspections cannot reveal this financial information as it exists only in administrative records.

Strata managers are required to provide records within legislated timeframes. In NSW, this is generally 10 business days for a strata information certificate. Some strata searchers offer urgent services for additional fees. Plan your inspection timeline carefully, especially if you have a short cooling-off period or conditional contract deadlines.

Strata inspections require expertise in interpreting financial statements, legal documents, and strata legislation. This is a document review process rather than a physical inspection. Many conveyancers offer strata search services, or you can engage a dedicated strata inspection company. Building inspectors are not qualified to conduct strata inspections as the skill sets are entirely different.

AS 4349.1 sets out the minimum requirements for building inspections, including scope, reporting format, and inspector qualifications. The standard requires inspectors to identify major and minor defects and safety hazards. For strata properties, the standard acknowledges the limited scope regarding common property. There is no equivalent Australian standard specifically governing strata inspections.

When inspecting an individual apartment, the building inspector focuses on your lot and accessible adjacent areas. They cannot access other units, plant rooms, or locked common areas. While an experienced inspector may note visible concerns with the building exterior or common areas they can observe, comprehensive building-wide assessment requires a different type of engagement, typically commissioned by the owners corporation.

Key warning signs include administrative funds below one quarter of annual levies, capital works funds below recommended amounts, unresolved legal disputes between owners or with builders, a history of special levies for reactive repairs, high owner levy arrears, and restrictive by-laws that may affect your intended use. Meeting minutes often reveal tensions and unresolved maintenance issues not apparent from financial statements alone.

In NSW, sellers must attach a strata information certificate to contracts. Queensland requires body corporate disclosure statements. Victoria mandates owners corporation certificates. However, these minimum disclosure documents may not include all available records. A comprehensive strata inspection reviews additional documents like meeting minutes and correspondence that reveal more about the scheme's true condition.

New buildings commonly have defects ranging from minor finish issues to significant waterproofing failures. A building inspection before settlement identifies defects that the developer must rectify under statutory warranties. Similarly, a strata inspection for new buildings reveals the initial financial setup, any known defects reported to the owners corporation, and whether builder warranties have been properly documented.

When common property defects are identified, repairs are funded through strata levies or special levies. As a lot owner, you contribute based on your unit entitlement. A strata inspection reveals existing defect reports and repair plans, while a building inspection may identify visible symptoms affecting your unit. Understanding both perspectives helps you assess potential future costs.

A strata inspection provides exact current levy amounts plus historical trends. Rising levies may indicate increasing maintenance needs or poor financial management. The report also shows the capital works fund balance and any planned increases. Comparing levies to similar buildings in the area helps assess whether amounts are reasonable for the facilities and services provided.