Essential insights for navigating the Western Australian strata market.
Buying or selling a strata property in Western Australia is different from a typical home transaction. Strata living involves shared ownership, collective decision-making, and ongoing financial commitments – so understanding the health of the strata scheme before you sign is essential.
Whether you’re purchasing or preparing to sell, reviewing the right documents and knowing your obligations can make the process smoother, more transparent, and stress-free.
Understanding Strata Ownership in WA
A strata scheme divides land and buildings into individual lots (units, apartments, or townhouses) and shared common property (driveways, lifts, roofs, and gardens). Owners hold title to their own lot while also having a share in the common property and being part of a strata company, which manages the common property and shared expenses.
“Buying or selling within a strata means joining or leaving a community with collective responsibilities. This makes due diligence essential – to understand not only the property itself but also how the overall scheme is being managed.”
What Buyers Should Review Before Purchasing
1. Strata Records and Documents
Before committing to a purchase, request access to the strata company’s records through the selling agent. These are held by the strata manager and reveal the property’s condition and financial health.
Key documents include:
- Strata plan and by-laws (to understand boundaries and rules)
- Meeting minutes (decisions and disputes)
- Financial statements (levies and expenses)
- Insurance certificates
- Correspondence about maintenance or legal matters
2. Minutes of Meetings
Meeting minutes often highlight maintenance projects, planned upgrades, or community issues. For example, a buyer might discover an upcoming roof replacement or lift refurbishment – indicators of future levies. Reviewing these records helps you understand the culture of the scheme and what to expect financially.
3. Levies and Financial Health
Strata levies are payments owners make to cover shared expenses. They are usually divided into:
- Administrative fund levies – for everyday costs like cleaning, insurance, and gardening.
- Reserve (sinking) fund levies – for major repairs and long-term maintenance.
Buyers should check if levies are up to date, if the reserve fund is healthy, and whether any special levies have been raised recently. A well-managed strata will have stable, predictable levies supported by a clear maintenance plan.
4. Planned or Ongoing Works
Always ask whether any significant repairs or capital works are planned. Reviewing the strata company’s 10-year maintenance plan (if available) will show what’s expected and when.
5. By-laws
By-laws outline what residents can and cannot do – such as rules on pets, parking, renovations, or noise. It’s important to check that these align with your lifestyle.
Seller Disclosure Requirements in WA
Sellers of strata-titled properties must meet specific disclosure obligations under the Strata Titles Act 1985 (WA). This ensures buyers receive transparent and accurate information before signing a contract. Ask your real estate agent for all of this information.
What Sellers Must Provide
Sellers must give buyers a Disclosure Statement that includes:
- Current strata levies and funds information.
- Recent meeting minutes and financial statements.
- Details of the strata insurance policy.
- Any known defects, outstanding liabilities, or planned major works.
- The strata manager’s contact details.
Consequences of Non-Disclosure: If sellers fail to disclose accurate information, buyers may have the right to withdraw from the contract or seek compensation.
The Role of the Strata Manager
Strata managers play a key role in supporting both buyers and sellers during property transactions through:
- Providing Access to Records: Ensuring records are complete, accurate, and delivered quickly.
- Maintaining Financial Info: Preparing budgets, managing levies, and overseeing maintenance.
- Ensuring Compliance: Keeping the scheme in line with WA legislation and maintaining clear communication.
Common Red Flags to Watch For
- Ongoing disputes in meeting minutes.
- Low reserve fund balances or overdue levies.
- Repeated special levies or unplanned expenses.
- Lack of building insurance or incomplete maintenance records.
How Pro Active Strata Management Can Help
At Pro Active Strata Management, we make strata transactions clearer and easier. Our role is to ensure that both buyers and sellers have access to accurate, well-maintained records and understand the financial and operational position of the scheme.
Conclusion: Buy and Sell with Confidence
By reviewing records, meeting minutes, levies, and maintenance plans, you’ll gain a full picture of the property’s financial and operational health. Sellers who disclose clearly and buyers who do their due diligence are far less likely to encounter issues later.