Buying Strata? Six Questions Your Section 184 Certificate Can Answer

The Document That Tells You What the Inspection Can’t

You’ve found a place you love. The location is right, the layout works, the price is within reach. You’ve done the building inspection; you’ve walked through twice. It feels like the one.
But in strata, there’s a whole layer of the purchase that a property inspection simply can’t reveal. How well has the building been managed financially? Are there significant debts sitting against the lot? Is a large special levy looming? What are the rules around pets, renovations or short-term letting? Does the building lock you into a single internet or electricity provider?
A Section 184 Certificate, the official financial and administrative snapshot issued by the owners corporation, answers all of these questions. It’s one of the most valuable documents in any strata purchase and knowing how to read it could save you from a very expensive surprise.
Your solicitor or conveyancer will typically request it as part of the conveyancing process. But here are the six key questions it can answer and what to watch for in each.

One of the most important things the Section 184 Certificate tells you is whether the current owner has kept up with their levy payments. This matters because outstanding levies are attached to the lot, not the owner. If levies are unpaid at settlement, they can become your responsibility after you take ownership.

The certificate will show:

• Whether contributions are paid up to date
• The amount of any outstanding levies, interest or recovery actions
• The current quarterly levy amounts for both the administrative fund and the capital works fund

Once you have the levy figure, it’s worth asking yourself two things. First, can you comfortably afford the current levies? Second, could you manage a moderate increase? Levies aren’t static, they’re reviewed at each Annual General Meeting and can rise over time as the building ages, insurance premiums increase, or maintenance needs grow.

Your solicitor should ensure any outstanding levies are accounted for in the settlement process, typically by adjusting the purchase price or requiring the vendor to clear the debt before settlement.

A special levy is an additional, one-off charge raised by the owners corporation to cover a significant cost that the capital works fund can’t absorb; a major repair, unexpected works, or a shortfall in the scheme’s finances. They can arrive with relatively little warning and can run to thousands of dollars per lot.

The Section 184 Certificate will disclose any special levy that has been raised or formally approved by the owners corporation at the time the certificate is issued. This is one of its most valuable functions it flags financial commitments you’d inherit as the new owner.

If a special levy appears on the certificate, don’t panic, but do ask questions. What is it for? Has the work been completed? If not, when is it expected? Could there be further levies required once works begin? Your solicitor can advise on how to address this in the contract.

The capital works fund is the scheme’s long-term savings pool; money set aside to pay for major future repairs and maintenance of common property, such as roof replacement, lift upgrades, external painting or driveway resurfacing.

The Section 184 Certificate will show you the current balance of the capital works fund. This figure tells you a lot about how the building has been managed.

A healthy fund means the scheme has been collecting adequate levies over time and planning for future works. A very low balance, particularly in an older building with significant common property infrastructure is worth exploring further.

• When was the 10-year capital works fund plan last reviewed?
• Are there significant works anticipated in the next few years?
• Is the fund balance sufficient to cover those anticipated costs?

An older building with a strong capital works fund balance can be a safer financial proposition than a newer building with a minimal one. A well-funded scheme has done the hard work of planning ahead, meaning you’re less likely to face a large special levy shortly after moving in.

The Section 184 Certificate must disclose any ongoing legal proceedings involving the owners corporation or affecting the lot. This includes disputes with contractors, building defect claims, NCAT proceedings, or other legal matters that could affect the scheme’s finances or your ownership of the property.

Legal proceedings aren’t necessarily a dealbreaker, but you should understand what they are, how far along they are, and what the potential financial exposure might be for the owners corporation. A building defect claim might ultimately result in a significant payout, or it might resolve in the scheme’s favour. Either way, you deserve to know about it before you commit.

If proceedings are listed on the certificate, ask your solicitor to help you understand the implications before proceeding.

Every strata scheme operates under a set of by-laws, rules that govern how owners and residents may use their lot and the common property. The Section 184 Certificate includes the scheme’s current by-laws and reading them carefully is essential before you buy.

By-laws can vary significantly between schemes and cover a wide range of matters, including:

• Whether pets are permitted — and if so, what types and under what conditions
• Rules around short-term letting platforms such as Airbnb
• Renovation and alteration approvals — what requires permission and what doesn’t
• Noise and behaviour rules
• Parking arrangements
• Use of common areas such as pools, gyms and BBQ facilities

If you have a dog, a plan to renovate, or an intention to use the property as a short-term rental, the by-laws are not something to skim. A by-law that conflicts with how you intend to live or use the property is a significant issue, and while by-laws can sometimes be changed, it requires a resolution at a general meeting and isn’t always straightforward.

Take the time to read them in full before you exchange contracts.

This is a new question that many buyers haven’t had reason to ask until now, but it’s becoming increasingly important, particularly in newer strata developments.

An embedded network (also called an exclusive supply network) is a privately owned utility system that supplies the whole building, or multiple lots within it, with electricity, gas, hot or cold water, internet or other services. Rather than each owner arranging their own supply directly with a retail provider, the network operator supplies the building and on-sells services to individual lot owners.

Embedded networks are common in newer apartment buildings, and they can have real practical implications for you as a buyer:

• You may have limited or no ability to choose your own energy or internet provider, which can affect the rates you pay.
• There may be ongoing contractual obligations tied to the network that affect you as an owner, not just while you live there, but potentially if you want to sell.
• Exit or termination fees may apply if the owners corporation ever wants to change arrangements at a scheme level.

From 1 April 2026, the Section 184 Certificate must disclose whether an embedded network exists in the scheme, what type of service it provides, and who the provider is. This change is designed specifically so that buyers like you receive this information before committing to a purchase, not after.

If an embedded network is disclosed on the certificate, it’s worth asking your solicitor or the strata manager for more detail about the arrangement, including any contractual lock-in periods or pricing structures so you can factor that into your decision.