Sample report

12 Smith Street, Surry Hills NSW

NSW · 5 documents · Analysed 14 Jan 2026 · This is a sample report for demonstration purposes

Significant issues identified

Executive summary

The documents disclose a strata scheme with a marginal sinking fund balance relative to the capital works forecast. The AGM minutes record an unresolved water ingress defect on Level 3, with a contractor quote obtained but no repair authorised. A special levy motion was deferred at the November 2025 AGM and is pending an EGM in February 2026. By-laws prohibit short-term letting arrangements. Insurance is current and the sum insured appears adequate for the building's age and location.

The scheme is an 18-lot residential building constructed in 2004, with a strata manager appointed by the committee. Levy arrears are low and the administrative fund is in a healthy position. The primary concern is the sinking fund trajectory and the pending infrastructure works programme.

Flags — 2 critical, 2 significant, 2 watch, 2 informational

Unresolved structural defect notice issuedCritical

A formal structural defect notice (Form 6 under the Strata Schemes Management Act 2015) was issued to the owners corporation in September 2025 regarding cracking to the north facade parapet wall. No remediation contractor has been appointed and no response to the notice has been filed with Fair Trading NSW as of the document date.

section_184_cert.pdf · Page 2

Litigation proceedings activeCritical

The Section 184 Certificate discloses that the owners corporation is a respondent in proceedings filed at NCAT in October 2025 by Lot 7. The nature of the claim is described as a by-law enforcement dispute. Legal costs to date are not disclosed in the financial statements.

section_184_cert.pdf · Page 3

Sinking fund below capital works forecast requirementSignificant

The capital works forecast projects $420,000 required by FY2028 for roof replacement and facade works. The current sinking fund balance is $187,000 — a shortfall of approximately $233,000 at the projected levy rate. The forecast was prepared by a registered quantity surveyor in 2023 and has not been updated since.

financials_2025.pdf · Page 14

Unresolved water ingress defect — Level 3Significant

AGM minutes record a water ingress issue on Level 3 identified in March 2025. A contractor quote of $28,000 has been obtained but the repair has not been authorised by the committee. There is no reference to whether the issue is building fabric or plumbing related.

agm_minutes_nov2025.pdf · Page 3

Special levy resolution pending voteWatch

A motion to consider a special levy of $1,800 per lot to fund sinking fund shortfall was deferred to the next EGM, scheduled for February 2026. This motion has not yet been approved. If passed, the per-lot cost would be $1,800 payable within 30 days of the resolution.

agm_minutes_nov2025.pdf · Page 7

Strata manager contract up for renewal March 2026Watch

The current strata management agreement expires 31 March 2026. The AGM minutes note the committee intends to seek competing quotes before renewing. A transition in strata management may affect continuity of records and levy processing.

agm_minutes_nov2025.pdf · Page 11

Short-term letting prohibited by by-lawsInformational

By-law 14.2 prohibits short-term letting of any duration. The by-laws define short-term letting as any arrangement of less than 90 consecutive days. This by-law was registered in 2022 and would affect any Airbnb or similar arrangement.

by_laws_2024.pdf · Page 8

Balcony renovation approval process notedInformational

Lot 12 was granted approval for balcony enclosure works at the September 2024 committee meeting, subject to development consent from Council and a by-law amendment. The by-law amendment appears in the current by-laws as By-law 22 (individual lot). This is informational only.

agm_minutes_nov2025.pdf · Page 9

Financial health

Sinking fund balance

$187,000

Marginal

Admin fund balance

$34,200

Healthy

Levy arrears

$2,400

Low

Quarterly levy (per lot)

$1,240

Admin + sinking

Capital works forecast (FY2028)

$420,000

Shortfall risk

Legal costs disclosed

Not disclosed

Litigation pending

Source: financials_2025.pdf · Pages 12–16

Insurance

Insurer

CHU Underwriting Agencies

Policy number

CHU-2025-081234

Sum insured

$8,200,000

Policy expiry

31 March 2026

Public liability

$20,000,000

Workers compensation

Included

Note: Policy expires 31 March 2026. Confirm renewal before settlement if purchasing in Q1 2026. The sum insured was set in 2023 and may not reflect current replacement costs given construction cost inflation since that date.

Source: insurance_cert.pdf · Pages 1–2

By-laws summary

PetsPermitted with prior written committee approval. Approval may be revoked if nuisance complaints are sustained.

Short-term lettingProhibited for any arrangement under 90 consecutive days (By-law 14.2, registered 2022).

RenovationsStructural and wet area works require written committee approval and a by-law amendment. Cosmetic works require notification only.

NoiseHard floor coverings in living areas require underlay with minimum 6-star acoustic rating. No power tools between 8pm–8am or on Sundays.

SmokingProhibited on all common property including balconies. Permitted within individual lots with windows closed.

ParkingNo visitor parking on common property for more than 2 consecutive hours without committee approval. Towing applies.

Source: by_laws_2024.pdf · Pages 6–11

Questions to raise with your solicitor or strata manager

?What is the current status of the NCAT proceedings (Lot 7 dispute), and what is the anticipated legal cost exposure for the owners corporation?
?Has a response been filed with Fair Trading NSW in relation to the September 2025 structural defect notice for the parapet wall?
?What is the committee's plan to address the sinking fund shortfall before FY2028, and is a special levy likely to be approved at the February 2026 EGM?
?What is the current status of the Level 3 water ingress repair, and has a structural or plumbing engineer assessed the source of the defect?
?Has the owners corporation obtained independent advice on the adequacy of the $8.2M sum insured given current construction costs?
?What is the outcome of the strata manager contract renewal process, and will there be continuity of management through any transition?

⚠This is a demonstration report only. StrataCheckAI is a document analysis tool — it does not provide legal, financial, or strata management advice. Verify all findings in source documents and consult a qualified professional before making any property decision.

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What does the sinking fund forecast say about the shortfall?

The capital works forecast (financials_2025.pdf, p.14) projects $420,000 is required by FY2028 for roof replacement and facade works. The current balance is $187,000. The forecast notes the current levy rate is insufficient to close this gap by the projected date without a special levy or levy increase.

What are the NCAT proceedings about?

According to the Section 184 Certificate (p.3), the owners corporation is a respondent in NCAT proceedings filed by Lot 7 in October 2025. The certificate describes the claim as a by-law enforcement dispute. No further details about the nature of the dispute or the amount claimed are disclosed in the documents provided.

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