Selling a strata property in New South Wales: apartments, townhouses and villas

Unlike a freestanding house, selling a strata property in New South Wales (NSW) involves additional legal and disclosure requirements. Because the property forms part of a strata scheme, additional obligations arise during the sale.

At SYC Legal, we assist Sydney property owners with the sale of strata apartments, townhouses and villas by managing these requirements in accordance with NSW law.

This article highlights key legal matters vendors should be aware of when selling their strata property to support informed decision-making.

Why selling a strata property is different from selling a house

Selling a strata property differs from selling a freestanding house due to additional legal considerations. These commonly relate to:

• statutory disclosure obligations

• strata-specific documentation

• levies, by-laws and the management of the strata scheme

  
  

If these matters are not addressed early, the sale process may be delayed, contract terms may require renegotiation, or disputes may arise after exchange.

Engage a lawyer before marketing the property

In NSW, a residential property must not be advertised or offered for sale unless a Contract for Sale, together with the required disclosure documents, has been prepared. Advertising a property without a prepared contract may constitute an offence under the Conveyancing Act 1919 (NSW) and its associated regulations.

Engaging a lawyer early in the sale process allows sufficient time to:

• prepare the Contract for Sale and required disclosure documents

• review the title and registered strata plan

• identify strata-specific risks or compliance issues

• assess disclosure obligations before marketing commences

  
  

Addressing these matters at the outset reduces the risk of non-compliance, helps minimise delays once a buyer is found, and assists in avoiding issues during negotiations or exchange of contracts.

Contract for sale requirements for strata properties

A Contract for Sale for a strata property must include the prescribed disclosure documents required under NSW conveyancing law, including:

• a current title search

• the registered strata plan

• a planning certificate (section 10.7) issued by the relevant local council

• sewer and drainage service diagrams

• registered strata by-laws and any applicable management statement

Vendor disclosures are supported by a Section 184 Certificate issued by the strata managing agent. While the certificate is not required to be annexed to the Contract for Sale, it is commonly relied upon to confirm strata levies, insurance details and other scheme information, and to assist in the preparation of settlement figures and adjustments under the Contract for Sale.

Vendors’ disclosure obligations

Vendors of strata properties are required to provide accurate and complete information relating to both the property and the Owners Corporation so that a purchaser can make an informed decision before exchange.

Disclosure obligations relate to:

• the individual lot; and

• the Owners Corporation and strata scheme

  
  

Vendors should ensure that the following matters are disclosed where known:

• unpaid or outstanding strata levies

• approved or proposed special levies

• disputes, defect claims or litigation involving the Owners Corporation

• known approved capital works or projects that may materially affect the strata scheme

• known unapproved renovations or compliance issues requiring Owners Corporation approval

Purchasers commonly investigate capital works and renovation approvals through strata inspection reports and follow-up enquiries. However, where a vendor is aware of material approved works, pending levies or unapproved alterations, those matters should be disclosed to avoid the risk of misleading conduct.

Understand the costs involved in selling a strata property

In addition to agent commission, vendors should plan for costs which may include:

• legal and conveyancing fees

• Section 184 Certificate fees charged by the strata managing agent

• mortgage discharge fees

• marketing and photography costs

• outstanding council rates, water rates or utilities

• capital gains tax (if applicable)

  
  

SYC Legal offers upfront and transparent fee disclosure, enabling vendors to make informed financial decisions throughout the sale process.

Avoid common issues that can delay a strata sale

The following issues commonly delay exchange or settlement if they are not addressed at an early stage:

• listing the property before the Contract for Sale has been prepared

• failure to disclose known special levies, disputes or building issues

• unapproved renovations requiring Owners Corporation approval

• delays in obtaining mortgage discharge

• reliance on outdated strata information

Identifying and addressing these issues early can help prevent delays and reduce the risk of complications during the sale process.

Final note

Selling a strata property in NSW requires careful preparation and accurate disclosure. Addressing these matters early reduces risk and supports a smoother transaction.

If you are considering selling an apartment, townhouse or villa in NSW and would like advice tailored to your circumstances, SYC Legal can assist.

*The information in this article is for general guidance only and does not constitute legal advice. You should seek professional advice before relying on or acting upon this content.