What the new strata handover paperwork tells a unit or townhouse buyer, and what it doesn't

New NSW strata schemes must now hand owners a maintenance schedule on a standard form, and in apartment blocks an independent surveyor certifies that form and the first levy estimates, but nobody in that chain inspects the building, so a buyer still needs their own building and pest inspection.

If you are buying a unit or townhouse in a new NSW strata scheme, the developer's handover paperwork is now more standard, and in apartment blocks an independent surveyor certifies it. It is still paperwork.

Count what that surveyor actually certifies and you get two items. First, that the maintenance schedule was prepared using the standard form. Second, that the first year's levy estimates meet expected spending, “based on expenses provided by the original owner”. Neither item is the condition of the building.

That is why NSW Fair Trading's advice to buyers has not changed: get both a strata report and a building inspection report before you buy. At Blacktown Building Inspections we think of it as two separate paths. The paper path tells you the developer followed a process. The building path, a physical inspection, tells you what you are actually buying.

What changed for strata handover on 1 April 2026

Three of the changes touch a new scheme's paperwork:

The timing is fixed too. The original owner must give the owners corporation the IMS at least 14 days before the first AGM. In a multi-storey scheme, the original owner (usually the developer or builder) must also give evidence of that certification 14 days before the first AGM.

Two paths to the buyer: the paper path and the building pathPaper pathOriginal owner(usually thedeveloper orbuilder)prepares theIMS on thestandard formmulti-storeyschemes onlyIndependentsurveyor certifies:1) IMS on thestandard form2) initial levyestimates againstexpenses providedby the original ownerOwnerscorporationreceives theIMS andcertificationevidence at least14 days beforethe first AGMStratarecordsStrata searchreport andsection 184certificateBuyer andconveyancerThe surveyor's certification never touches the buildingBuilding pathThe building (roof,common property, your lot)Building and pestinspector carries out aphysical inspectionInspection reportBuyerTwo paths to the buyer: the paper path and the building pathPaper pathOriginal owner (usually the developer or builder)prepares the IMS on the standard formmulti-storey schemes onlyIndependent surveyor certifies:1) IMS on the standard form2) initial levy estimates against expenses providedby the original ownerOwners corporation receives the IMS andcertification evidence at least 14 days before thefirst AGMStrata recordsStrata search report and section 184 certificateBuyer and conveyancerThe surveyor's certification never touchesthe buildingBuilding pathThe building (roof, common property, your lot)Building and pest inspector carries out a physicalinspectionInspection reportBuyer
Source: NSW Government

These duties fall on the original owner at handover. They do not force older blocks to redo their paperwork overnight: owners corporations only need to move to the 10-year plan standard form when revising or replacing a plan.

What is an initial maintenance schedule?

The IMS is the developer's starting guide to looking after the shared parts of the building. Fair Trading describes it as including “maintenance and inspection information for various parts of common property”. All IMS must now use the standard form, whatever the height of the scheme.

A schedule looks forward. It sets out what should be maintained and inspected, and when. It does not record the state of the roof, the balconies or the common walls on the day you sign. Hold on to that gap, because everything below comes back to it.

When does the handover paperwork arrive?

The clock starts with sales. The developer's initial period ends when at least one third of the unit entitlements are sold. The original owner must then hold the first AGM within two months of that, with 14 days' notice to owners. The IMS, and in a multi-storey scheme the certification evidence, must reach the owners corporation at least 14 days before the first AGM.

Put those together and you get the latest the paperwork can land. Our estimate: two months, less 14 days. So the IMS should reach the owners corporation no later than about six to seven weeks after the initial period ends, if the AGM is held on the last day allowed. An earlier AGM brings that date forward.

Timeline from the end of the initial period to the first AGMFirst AGM within 2 monthsNotice of first AGM to owners: 14 daysInitial period ends: at least one third ofunit entitlements soldIMS (and, in multi-storey schemes,certification evidence) to the ownerscorporation: at least 14 days before the firstAGMFirst AGMTimeline from the end of the initial period to the first AGMInitial period ends: at least one third of unitentitlements soldIMS (and, in multi-storey schemes,certification evidence) to the ownerscorporation: at least 14 days before the firstAGMNotice of first AGM to owners: 14 daysFirst AGMFirst AGM within 2 months
Source: NSW Government

Until that first AGM the developer is in control, with limits. While it controls the owners corporation, it cannot appoint a strata manager or building manager to continue past the first AGM, or alter common property (except under a development contract). If the original owner still holds half or more of the unit entitlement at the first AGM, their vote is reduced to one-third.

Missing the rules has a price for the developer, not for you.

What the original owner fails to doPenaltySource
Meet the multi-storey requirements (standard-form IMS, independent certification, evidence)Penalties apply, higher for a corporation than for an individualGuide to strata law changes, NSW Government
Hold the first AGM within two months of the initial period ending, or give the documents 14 days before itA penalty, plus a further penalty for each dayBuying a strata property, NSW Government

If an original owner does not meet the multi-storey requirements, penalties, higher for a corporation than for an individual, may apply. Separately, failing to hold the first AGM on time or to give the documents 14 days before it carries a penalty, plus a further penalty for each day.

Does the surveyor step apply to a townhouse or only an apartment block?

It turns on the shape of the scheme, not what the listing calls it. A multi-storey scheme has three or more storeys above ground level, with lots allocated one on top of another, for example apartment blocks. The surveyor certification applies to those schemes.

Some low-rise townhouse schemes may fall outside that definition. Don't assume yours does. Ask your conveyancer or solicitor which category your scheme is in. The standard-form IMS applies either way.

Does the surveyor step apply? A decision flow for a new strata schemeNew strata schemeIMS must use the standard formThree or more storeys above ground level, with lotsallocated one on top of another?YesNo or unsureMulti-storey scheme:independent surveyorcertifies the IMS andinitial levy estimates;evidence due 14 daysbefore the first AGMCheck the category withyour conveyancer orsolicitor
Source: NSW Government
A row of two-storey brick townhouses with Colorbond roofs and small front courtyards on one side of a street, and a five-storey rendered apartment block with stacked balconies on the other, with a footpath and nature strip and a young gum tree between them
Illustration: townhouses and an apartment block on one street

Height lines come up elsewhere in NSW strata. Ten-year defect insurance, which a developer can take out instead of a building bond, is for residential strata apartment buildings over 3 storeys. That is a different test from the surveyor step, so ask about each one on its own.

What does the surveyor certify, and what does it leave out?

In a multi-storey scheme, the independent surveyor must certify two things. One: the IMS was prepared using the standard form. Two: the initial levy estimates for the administrative fund and capital works fund meet the expected expenditure for the year after the first AGM, based on expenses provided by the original owner.

The surveyor must be independent of the original owner. That means not a relative, employee, employer or business partner, and not linked through a related corporation. They must also be either an Australian Institute of Quantity Surveyors member with the Certified Quantity Surveyor designation, or a Royal Institution of Chartered Surveyors member and a Chartered Quantity Surveyor. The evidence can be “a written statement or other document to the owners corporation explaining how these requirements have been met”, and it must show both the surveyor's independence and that both items were certified.

Surveyor certification is not an inspection of the building: it covers the standard form and whether the levy estimates match the expenses the developer supplied, as the guide to the changes sets out. Neither item is the building's physical condition.

Certified by the independent surveyor (multi-storey schemes)Not part of the certification
  • IMS prepared using the standard form
  • Initial administrative fund and capital works fund levy estimates meet expected expenditure for the year after the first AGM, based on expenses provided by the original owner
  • The building's physical condition
  • Common property such as roofing, as it stands today
  • Your lot
A building inspection is a separate step.

Notice where the levy check starts. It is measured against expenses the developer supplied, so it can only be as complete as that list.

Strata report vs building inspection

Fair Trading's advice is to get both a strata report and a building inspection report before buying. They answer different questions.

A strata search report covers scheme finances, insurance and when it was last checked, building defects and planned works, safety requirements, legal matters, and meeting notes. A building inspection is “a physical inspection of the property”, and a pest inspection can be requested too.

NSW Fair Trading advises getting both before buying.
Strata search reportBuilding inspection report
  • Scheme finances
  • Insurance and when it was last checked
  • Building defects and planned works
  • Safety requirements
  • Legal matters
  • Meeting notes
  • A “physical inspection of the property”
  • A pest inspection can be requested too
  • Existing reports done for someone else can be requested via the agent, but “it's best to get your own report done”

You may be offered a report someone else commissioned. Fair Trading says existing reports can be requested through the agent, but “it's best to get your own report done”.

The corner of a unit bathroom ceiling in white plasterboard with a brownish water stain spreading out from beside a ceiling exhaust fan, a torch beam lighting the stain, and an aluminium step ladder at the edge of the frame
Illustration: a water stain beside a bathroom exhaust fan

That second half is the work Blacktown Building Inspections does: pre-purchase building and pest inspections across Blacktown and Western Sydney. We don't certify maintenance schedules or levy estimates. That is a quantity surveyor's job. Our guide to property inspections in Blacktown has more on the inspection side.

How do you check the IMS when you are buying?

The IMS and the certification evidence go to the owners corporation, not to you. A buyer usually sees them through a strata report or a search of the strata records. These are the questions to put to your conveyancer or strata searcher.

  1. Is the IMS on the standard form? All IMS must now use the standard form.
  2. If the scheme is multi-storey, is there written evidence of independent certification? It should show that the surveyor is independent and has certified both items.
  3. Do the levies look realistic against the 10-year capital works plan? Fair Trading warns that “low levies could mean a steep rise in future fees”. The capital works fund pays for major work such as roofing and lifts.
  4. What does the section 184 certificate show? It sets out levies payable, outstanding levies on the lot, and funding proposals under the 10-year capital works plan. If an outstanding levy is not shown on the certificate, the purchaser is not responsible for it. Certificates must now also include embedded network utilities, orders and certain compliance action against the owners corporation, and meetings held in the past year and any upcoming meetings.
QuestionWhere the answer usually sitsWho to ask
Is the IMS on the standard form?Strata recordsConveyancer or strata searcher
Multi-storey only: is there written evidence that an independent surveyor certified the IMS and levy estimates?Strata recordsConveyancer or strata searcher
Do levies look realistic against the 10-year capital works plan?Section 184 certificate and the planConveyancer
Are there outstanding levies, compliance orders or embedded networks?Section 184 certificateConveyancer or solicitor

None of this is legal advice. Your solicitor or conveyancer, and NSW Fair Trading, are the people to confirm what applies to your purchase.

Does buying new or resale change what you ask?

Buying into a freshly registered scheme, the handover documents are recent. Ask whether the first AGM has been held yet, and whether the IMS and, for a multi-storey block, the certification evidence have been delivered to the owners corporation.

Buying a resale unit or townhouse, the scheme may have been handed over before the new rules started. Ask your conveyancer which requirements applied at its handover rather than assuming either way. An older-format 10-year plan is not a red flag by itself, because owners corporations only need to move to the standard form when revising or replacing a plan.

In both cases the building has kept ageing since the paperwork was written. The schedule hasn't seen that. An inspector can.

Documents to ask for before you buy

The handover rules at a glance

The handover rules at a glance: six rules1/3Initial period ends: when at leastone third of unit entitlements aresoldBuying a strata property, NSWGovernment2 monthsFirst AGM: within 2 months of the endof the initial periodBuying a strata property, NSWGovernment14 daysIMS and certification evidence: 14days before the first AGMGuide to strata law changes, NSWGovernment3+ storeysMulti-storey: 3 or more storeys aboveground levelGuide to strata law changes, NSWGovernmentPenalties applyMulti-storey requirements missed:penalties apply, higher for acorporationGuide to strata law changes, NSWGovernmentDaily penaltyFirst AGM or documents late: apenalty plus a daily penaltyBuying a strata property, NSWGovernmentThe handover rules at a glance: six rules1/3Initial period ends: when at least one third of unitentitlements are soldBuying a strata property, NSW Government2 monthsFirst AGM: within 2 months of the end of the initialperiodBuying a strata property, NSW Government14 daysIMS and certification evidence: 14 days before thefirst AGMGuide to strata law changes, NSW Government3+ storeysMulti-storey: 3 or more storeys above ground levelGuide to strata law changes, NSW GovernmentPenalties applyMulti-storey requirements missed: penalties apply,higher for a corporationGuide to strata law changes, NSW GovernmentDaily penaltyFirst AGM or documents late: a penalty plus a dailypenaltyBuying a strata property, NSW Government
Source: NSW Government

Six rules carry the whole handover: the one-third sales trigger and two-month AGM window, the 14-day delivery deadline, the three-storey test and the multi-storey penalties, and the daily penalty for a late AGM or late documents. Not one of them involves anyone looking at the building.

Your next step: get the building itself inspected

Let your conveyancer or strata searcher work through the strata report, the section 184 certificate, the 10-year plan and the IMS. Then cover the half the paperwork can't: ask Blacktown Building Inspections for a pre-purchase building and pest inspection of the unit or townhouse you are buying, using our enquiry form.

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Sources