When purchasing a property, you often consider the aesthetic, price, convenience, and location. You strive to get the best deals or something affordable. However, you often do so without looking at the bigger picture.

It is important to know that there is more to a property than just the said factors above. Things like property value, plumbing, and insurance, which you may not bother knowing but is essential for you or any occupant’s stay on your property. Without considering these factors, you could end up in losses within months after purchase. 

Effective Building and Consultancy offer a range of services to ease your mind when purchasing a property, including Strata Inspection Reports, which we consider essential for property purchases. Need your property checked soon? We’re the leading provider for Sydney strata inspections. Book us today.

What is Strata Inspection Report, and Why is It Important?

A strata inspection report is a vital report that a buyer should obtain before bidding on or purchasing a strata-titled, company titled, or community title. A strata inspection report obtains all of the information about the owners’ corporation relating to your proposed property purchase. It would be just as important as having a building completion report for a newly built property you are considering buying.

Having a strata inspection will shed light on different things. First, one would determine the sufficiency of funds in the Administration and Capital Works, given the complex size and the facilities. This should be based on judgment, but if there are lifts and other complex components, the funds should be adequate to enable these facilities to operate.

Another is to determine the relevant amount of insurances, current or proposed special levies, any major upcoming work, history of special levies, and any ongoing building problems or quotes that have been given for major work but were never actioned or to be actioned in the future.

A 10-year Capital Works Fund Plan, which must be reviewed at least every five years together with other strata records, would show the detail of the proposed works, a funding source for the proposed works, capital fund levies, resources from common property leases or licenses, and other matters dealt by the Owners Corporation and prescribed by legislation. Special levies should be anticipated if the annual expenses combined with the large works detailed in the Capital Works fund plan exceeded the Owners Corporation’s amount at the bank.

Moreover, it will also make you aware of any current or pending litigation, disharmony, or apparent problems with building owners who may make life difficult once you become an owner. Another is the consistent pattern of non-compliance with the requirements of being a strata scheme, such as failure to implement window lock reviews or update insurance valuations. If you have concerns about pets, renovations, and other topical issues, strata inspections will add relevance to you.

What are the Benefits of a Strata Inspection Report?

Buying a strata inspection report is a cost in itself. It is not an investment people are often open to spending on. Still, strata inspection reports are minimal compared to the property’s significant financial investment you want to own and potentially earn extra money from. Strata inspection reports are guides that are supposed to give you the right information that financial advisors or brokers refuse to tell you. Here are some of the benefits of having a strata inspection report.

Helps to See the Financial Standing of the Strata Scheme

All brokers can show you great amenities and talk you into considering the place because of its location and value. However, do you know the building’s financial position or any existing disputes? This is what a strata inspection report can help you. For any owned property, your decision to buy may not just be because you want a home to live in but also a property you would consider selling; hence we say a safe investment.

Looking into the strata inspection report gives you an overview of how well managed the premises are. If you purchase a property quickly without looking at its financial aspects, you could end up buying at a high price but end up selling it at a loss later on. If you end up renting it, rent prices from mismanagement could also plummet down, leaving you with more headaches and little to zero profit.

Allows You to See if They Comply with Safety Laws

What is good about the strata inspection report is that it provides you with all the things you need to know – not just about the unit you want to purchase but also a building compliant with safety laws.

A comprehensive strata inspection report can give you details about the safety of fire exits, functionality and presence of carbon monoxide detector in smoke alarms, old wirings that need replacement, and many more. It will also provide details on potential structural issues as our staff are also able to draft structural engineer reports.

Enables You to Study Corporate Meetings, By-Laws, and Other Matters Relevant to Properties

Each strata scheme differs from property to property. When you have a strata inspection, you could see the owner’s voting rights, the meetings they go over, the concerns that need focus, and how they administer the property you would be buying. The by-laws also discuss owners’ rights and responsibilities, including complaints and garbage disposal.

Once you pay attention to these things, you may realise that there are matters that you aren’t okay with, but you would not be able to change anymore. No matter how big or small these are, remember that property investment is not easy or cheap. If this is a deal-breaker information to you and you have bought the property anyway, you may end up regretting it later.

All in all, what is truly great about strata inspections is knowing the essential information and enabling you to decide based on the detailed facts, not an agent or broker who may not always have your best interest at heart.

Importance of Building Bond on Strata Buildings to NSW Fair Trading

Since January 1, 2018, developers of new residential strata buildings (4 storeys and higher) under this scheme are required to pay two percent of the building contract price to NSW Fair Trading. After two years, this building bond may be used to pay for any identified rectification work if the developer has failed to do so.

All developers who have new project registrations from September 1, 2020, need to use the NSW Planning Portal.

Those developers who have projects registered before September 1, 2020, need to use the SBBIS ePortal.

How Can Effective Building & Consultancy Help?

For Owner’s Corporation

Effective Building & Consultancy offers a full suite of building defect inspection and reporting services to the Strata, Property Management, and Construction industries.

We specialise in strata work and work closely with strata managers and owner’s corporations to carry out defect inspections and prepare reports.

Once we are asked to conduct a defect inspection, our expert team liaise with owners to lessen the inconvenience when carrying out the inspections.

Our team will prepare and issue a comprehensive report which notes each defect with a photograph, identifies the Australian Standard or National Construction Code that is in breach, and finally, a brief scope of recommendation to rectify the defect.

We ensure that an owner’s corporation can easily understand our reports. However, if there are uncertainties, our team is willing to explain and clarify the report. Our reports are prepared in a standard format for lodgement with the legal authority should an unresolved matter escalate.

Purchasing a new property, such as a unit covered by a strata scheme, is covered under warranty for the first two years for defects and the first six years for a major defect.

For the first six years of a building, the owner’s corporation must include on the agenda of each annual general meetings or AGM to consider whether or not to commission a defect inspection of common areas and common property.

Liaising through us, EBC will provide a fee proposal to carry out a defect inspection of the building’s common areas. A short notice of inspection dates is given so that inconveniences to residents are kept to a minimum as access to every unit is required.

After the physical inspection, a detailed report where identified defects with photographs will be prepared for each unit, the relevant Australian Standard, and a brief scope of rectification work.

For Builders and Developers

Effective Building & Consultancy offers building defect inspection and reporting services to the Construction Industry. We have clients that are often builders and developers who have received a defect report from lawyers representing an owner’s corporation.

EBC offers an evaluation program whereby we will take a high-level review of the report and then provide a one-hour meeting in our offices to discuss the most appropriate strategy.

If necessary, EBC will carry out a site inspection along with a specialist consultant that may be required. After, we will prepare a full formatted report that can be lodged with the courts. EBC can also provide a mediation process to prevent the matter from escalating into the legal system and incur high legal costs for our clients.


The defects rectification can be a tedious task having to work with residents’ availability, etc. EBC offers a defect inspection for builders at the time of completion before any occupancy. The report is cost-effective as references to Australian Standards and scope of rectification work is not included. Defects identified can typically be easily attended to by the builder and before an occupation, which goes towards considerable time-saving.

We will initially review the report and discuss our initial findings with the builder. We can then go on to carry out an inspection and prepare a report in response.


Under the Strata Building Bond and Inspections Scheme, the developer is responsible for the building bond with Fair Trading before any issuance of occupation certificate in the strata scheme.

2% of the contract price is the amount to be secured by a building bond for the building work. This is the total price paid under all applicable building work contracts before the developer makes an application for any occupation certificate (whether interim or conditional). It has to be calculated on the price at practical completion, not prior to it or at the start of construction and includes all additions, variations, and price fluctuations.

Within a year of OC issuance, an independent building inspector will be hired to inspect the building at the developer’s expense.

In the last two years, any person who has been connected with the developer cannot be appointed as a building inspector.

Moreover, the building inspector must generate an interim defects report within 15 or 18 months. If the interim report does not identify any defects, the bond is released to the developer after two years of the completion or construction. However, if defects are noted in the report, these defects are the developer’s responsibility to rectify.

The building inspector must generate a further and final report within 21/24 months to confirm that all defects originally identified are repaired. If the final inspection report does not identify any defects, the bond will be released to the developer. If defects are identified in the final report, the bond will be released to the owner’s corporation to rectify any defects identified in the report.

After the defects are fixed, any money left over must be returned to the developer.


Effective Building & Consultancy can inspect and prepare initial defect reports for your clients.

We can also prepare reports in response to all defect inspection reports served on a builder or developer.

Legal Professional Report

We offer comprehensive expert reports as our associates are qualified and experienced in all of the construction disciplines:

      • General defect inspections
      • Structural reports
      • Hydraulic reports
      • Electrical
      • Mechanical
      • Fire compliance
      • Roofing
      • Painting
      • Plumbing and draining
      • Waterproofing
      • WH&S Reports

We liaise with the contact of choice to review any supplied documents, carry out the necessary site inspections and then prepare full reports.

This capability enables EBC to supply the building reports that may be required for submission to the court, including expert witnesses’ appearances, without having to brief a number of individual specialist consultants.

Effective Building & Consultancy Strata Inspection Report in Sydney

For your strata inspection report and building and pest inspection needs, choose Effective Building & Consultancy – your trusted company that will put your security and welfare at the forefront. If you’re on the lookout for Sydney strata inspections, there isn’t a team more qualified or experienced to help you.

Effective Building & Consultancy has helped many individuals see the problems in properties, whether about to purchase or already own. Rest assured, you can trust our team to provide you with premium and practical solutions for your inspection needs. Learn your property and protect your hard-earned money and contact Effective Building & Consultancy now.

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