Decide what to buy

Buying an apartment or off the plan in New South Wales

Levies and the owners corporation's funds, what to read before you buy, and the off-the-plan rules on deposits, sunset clauses and changes in New South Wales, each checked against NSW Government (NSW Fair Trading and Building Commission NSW).

The short answer

In NSW you buy into a strata scheme, and every owner pays strata levies to the owners corporation, usually quarterly. (NSW Government (NSW Fair Trading), verified 22 Oct 2026) Get a strata search report before you buy; it covers the scheme's finances, insurance, building defects and planned works. (NSW Government (NSW Fair Trading), verified 22 Oct 2026) Off the plan, you have a 10 business day cooling-off period, (NSW Government (NSW Fair Trading), verified 22 Oct 2026) your deposit is held in trust and can't be released to the developer before settlement, (NSW Government (NSW Fair Trading), verified 22 Oct 2026) and the developer needs your consent or a Supreme Court order to end the contract under a sunset clause. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

Rules as at 22 October 2026, from NSW Government (NSW Fair Trading and Building Commission NSW) pages. They change: check the official page before you rely on one.

Levies and the capital works fund

Levies go into an administrative fund for day-to-day costs (gardens, maintenance, strata management fees) and a capital works fund for major building work such as replacing roofing, lifts or fencing. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

Every scheme must have a 10-year capital works plan that sets out future levies and annual budgets. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

Low levies could mean a steep rise in future fees, and special levies may be needed if there isn't enough money for large capital works or unforeseen expenses. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

What to read before you buy

NSW Government guidance is to get a strata search report before you buy. Drawn from the strata roll, it covers the scheme's finances, whether it has good insurance, building defects and planned works, safety requirements, existing or pending legal matters, and meeting notes. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

The seller must include a copy of the strata plan in the contract of sale, and a copy of the by-laws must be attached to the contract. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

Buying off the plan

Off-the-plan buyers have a 10 business day cooling-off period, against the usual 5 business days for an already built home. Pulling out during it costs 0.25% of the purchase price, and it can be waived or shortened only with a certificate from your lawyer or conveyancer. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

The vendor must attach a disclosure statement to the contract, including sunset dates and other conditional events, and give you draft documents such as the plan, a proposed schedule of finishes and draft by-laws. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

If something disclosed changes in a 'material particular' (a change that adversely affects your use or enjoyment of the lot), the vendor must tell you. If the change materially prejudices you, you may be able to end the contract and get the deposit back, or settle and claim compensation capped at 2% of the price. You have 14 days from being notified to act. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

You must be given a copy of the registered plan at least 21 days before settlement. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

The deposit and any instalments must be held in a trust or controlled money account for the whole contract and can't be released to the vendor before settlement. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

You can use a deposit bond or bank guarantee instead of a cash deposit only if the developer agrees before the contract is signed. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

A sunset clause requires the plan to be registered, or an occupation certificate issued, by a set date. The developer needs your consent to end the contract under it, or must apply to the NSW Supreme Court; you don't need court approval. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

Defects and cladding

Under the Strata Building Bond and Inspections Scheme, the developer lodges a bond of 2% of the contract price before applying for an occupation certificate; the increase to 3% is deferred until 1 July 2028. An inspector reports 15 to 18 months after completion and again at 21 to 24 months, and the bond may pay to fix the defects those inspections find. It doesn't apply where home building compensation (HBCF) cover does. (NSW Government (Building Commission NSW), verified 22 Oct 2026)

Building Commission NSW can investigate serious defects in class 2 apartment buildings for up to 10 years after completion; owners can notify it when a serious defect can't be resolved with the builder or developer. (NSW Government (NSW Fair Trading), verified 22 Oct 2026)

Project Remediate, the state's program to replace high-risk combustible cladding on class 2 apartment buildings, lends owners corporations the cost interest-free over 10 years and the owners corporation levies owners for the repayments. Registrations have closed. (NSW Government (Building Commission NSW), verified 22 Oct 2026)

More on apartments

Every state side by side: buying an apartment or off the plan, state by state. Delora's Victorian guides go further on reading an owners corporation certificate and owners corporation due diligence; for cooling-off in general, see the cooling-off period.

Practical checklist

Before you buy an apartment in New South Wales

• Order a strata search report (most buyers use a strata searcher or conveyancer) and read the finances, insurance, defects and legal matters
• Compare the levies with the 10-year capital works plan: will the fund cover what the plan says is coming?
• Ask whether any special levy has been proposed, and whether the building is repaying a cladding loan
• Off the plan: read the disclosure statement's sunset date, and diary the 14-day window if a change notice arrives
• If you want to use a deposit bond, agree it with the developer before you sign
• Have a conveyancer or lawyer review the contract before you sign

Questions for a professional

• Is the capital works fund on track with the 10-year plan, or are special levies likely?
• Does the strata search show defects, legal matters or planned works I should price in?
• Off the plan: what does the disclosure statement allow the developer to change, and what are my rights?

Official resources

• NSW Government: Buying a strata property
• NSW Government: Buying property off the plan
• NSW Government: Strata Building Bond and Inspections Scheme

Sources and methodology

• Buying a strata property | NSW Government — NSW Government (NSW Fair Trading) (retrieved 22 Oct 2026). Licence: NSW Government content, reproduced for research/citation purposes
• Buying property off the plan | NSW Government — NSW Government (NSW Fair Trading) (retrieved 22 Oct 2026). Licence: NSW Government content, reproduced for research/citation purposes
• Strata Building Bond and Inspections Scheme | NSW Government — NSW Government (Building Commission NSW) (retrieved 22 Oct 2026). Licence: NSW Government content, reproduced for research/citation purposes
• Replace flammable cladding through Project Remediate | NSW Government — NSW Government (Building Commission NSW) (retrieved 22 Oct 2026). Licence: NSW Government content, reproduced for research/citation purposes

Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.