NSW strata reforms 2025 to 2026: what owners and buyers need to know

If you own, are buying into, or sit on the committee of a strata scheme in NSW, the law has changed in stages through 2025 and 2026. The reforms affect how schemes are run, what buyers are told, and the protections owners have. This guide covers the main points.

Why the reforms matter

A large and growing share of Northern Beaches homes are strata, from apartments to townhouse and villa complexes. When you buy into strata, you are buying into a shared legal structure with its own rules, levies, and obligations, and the health of that structure affects the value and enjoyment of your lot. These reforms are aimed at making schemes better run and buyers better informed.

The reforms commenced in stages

The changes did not arrive all at once. They commenced in stages, broadly a first stage from 1 July 2025, a further stage from 27 October 2025, and a final stage from 1 April 2026. Because of the staging, which rule applies can depend on the date, so check the current position for your scheme.

Stronger oversight and repair obligations

An early focus was on making owners corporations meet their duties to repair and maintain common property, and giving the regulator more power to enforce that. NSW Fair Trading gained greater power to enter schemes, inspect, and issue notices where an owners corporation fails to keep common property in repair. For owners, this is a protection. A scheme that lets common property fall into disrepair now faces real consequences.

Better information for buyers

Disclosure to prospective buyers was strengthened. Strata information certificates, which a buyer obtains to understand the financial and legal health of a scheme, must now disclose more, including details of any embedded network arrangements such as shared electricity or hot water.

Our practical point for buyers. The strata records tell you what you are really buying. Before you commit to a strata property, we review the strata certificate and records for levies, special levies, the state of the capital works fund, disputes, and any looming major expense. A low purchase price can hide a scheme heading for a large special levy.

Controls on contracts and utilities

Two changes protect owners from being locked into poor arrangements. First, the unfair contract terms regime under the Australian Consumer Law now applies to contracts with owners corporations, including contracts with developers, so unfair terms can be void or attract penalties. Second, there are new limits on the duration of utilities and services agreements, such as embedded electricity networks, telecommunications, and EV charging, to stop schemes being tied into long and unfavourable supply deals.

Better financial planning

The reforms also push schemes towards sounder financial planning. New schemes face requirements around initial maintenance schedules and certification that the levy estimates for the administrative and capital works funds actually match expected expenditure, with independent checks for larger multi-storey schemes. For owners, the aim is fewer nasty surprises in the form of under-funded capital works and sudden special levies.

What is still coming

Further building and strata reform is in train, including proposals around defects and insurance for apartment buildings. This is a moving area, so if you are buying into a newer building in particular, it is worth checking the current position.

How we help

We act for owners, buyers, and owners corporations. For buyers, we review the strata records as part of the conveyancing and tell you what they reveal before you are committed. For owners and committees, we advise on the scheme's obligations and on disputes. Strata is more legally involved than many buyers expect, and a review before you sign is the cheapest protection you will get.

Frequently asked questions

When did the strata reforms start? In stages, broadly from 1 July 2025, 27 October 2025, and 1 April 2026.

I am buying an apartment. What should I check? The strata information certificate and records, covering levies, special levies, the capital works fund, disputes, and any major expense coming up. We review these as part of the conveyancing.

Do the unfair contract terms rules apply to my owners corporation? Yes. The reforms extended the unfair contract terms regime to contracts with owners corporations, including with developers.

What if the owners corporation will not repair common property? The regulator now has stronger powers to inspect and issue notices where a scheme fails to repair and maintain common property.

Keep reading

• Property and conveyancing
• Buying a home in NSW: the conveyancing process explained
• Strata vs Torrens title: what's the difference?

This article contains general information only and is not legal advice. For advice about your situation, please contact us. Liability limited by a scheme approved under Professional Standards Legislation.