Glossary
Strata terms, explained
Strata reports are written for strata managers, not buyers. Here's what the recurring terminology actually means.
Administration fund
The owners corporation's account for day-to-day running costs — insurance premiums, cleaning, gardening, minor repairs, management fees. A deficit here means ordinary levies aren't covering ordinary expenses, which usually precedes a levy increase.
Annual Fire Safety Statement (AFSS)
An annual certificate confirming that a building's essential fire safety measures have been assessed by an accredited practitioner and are functioning. Lodging one is mandatory each year for most NSW apartment buildings, so an overdue or missing statement is a compliance issue — and a report that never mentions it is worth querying.
By-laws
The scheme's own rules, binding on all owners and occupiers. They commonly cover pets, renovations, flooring, parking, noise and short-term letting. Read them before you buy if any of those matter to you — changing a by-law requires a special resolution of the owners corporation, not just your preference.
Capital works fund
The fund set aside for major, infrequent expenditure — painting, roofing, waterproofing, lifts. Previously called the sinking fund, and still widely known by that name. Its adequacy is judged against the 10-year capital works plan, not in isolation. Full guide →
Capital works fund plan (10-year plan)
A forecast of major work anticipated over ten years, with estimated costs and timing. NSW schemes must have one and review it at least every five years. A plan that is old, uncosted, or self-prepared tells you less than one recently prepared by a quantity surveyor.
Common property
Everything in the scheme not inside an individual lot — the structure, roof, external walls, foyers, lifts, driveways, gardens. The owners corporation is responsible for maintaining it, funded by your levies.
Concrete cancer (spalling)
Water reaches the steel reinforcement inside concrete; the steel corrodes, expands, and cracks the concrete outward. It worsens over time and repair costs are dominated by access — scaffolding, engineering, remediation. See red flags →
Lot
An individually-owned part of the scheme — your apartment, and usually the car space and storage cage attached to it. Everything else is common property.
NCAT
The NSW Civil and Administrative Tribunal, which hears strata disputes. References to NCAT proceedings in a report indicate an active or recent dispute — worth understanding, because both the cost and the outcome pass to you as an incoming owner.
Owners corporation
The legal entity comprising all lot owners in the scheme, responsible for maintaining common property, insuring the building, keeping records and levying owners. Called a body corporate in some states. Buying a lot makes you a member automatically.
Special levy
A one-off charge on owners, over and above regular levies, usually because the capital works fund can't cover a needed expense. The status matters enormously: one that has been struck (formally approved) is a payable liability; one merely proposed has not been resolved; one already paid is history. Repeated special levies suggest chronic underfunding.
Strata plan
The registered plan defining the scheme's lots and common property boundaries, with a number like "SP12345". It's how the scheme is identified in official records.
Strata report (strata search)
A compilation of the owners corporation's records — financials, minutes, by-laws, insurance, plans and correspondence — prepared for a prospective purchaser. Typically 150–300 pages, usually with no summary. How to read one →
Unit entitlement
A number assigned to each lot that determines its share of the levies and its voting weight, generally reflecting relative value at registration. It's why two apartments in one building can pay materially different levies.
Water ingress
Unwanted water entering the building — through the façade, roof, balconies or below ground. The most common serious defect in Australian strata, and often the underlying cause of concrete cancer and internal damage. Repeated mentions across several years of minutes matter more than a single reference.
Or start with how to read a strata report.