Buying a Unit-title Apartment
Insight
Buying a unit-title apartment involves unique legal and financial considerations that don’t apply to standalone homes. Unit titles come with shared governance, ongoing levies, maintenance planning, insurance obligations and building-wide risks. Because buyers inherit these obligations immediately upon settlement, careful due diligence is critical.
Many buyers overlook key issues such as leaky-building history, underfunded maintenance accounts, high upcoming levies, insurance limits or disputes within the body corporate. This guide explains how unit-title ownership works, what to review, and when legal concerns require closer attention before going unconditional.
Understanding Disclosure Statements
Tip:
Always compare levy forecasts with past AGM minutes — they often reveal upcoming increases or unbudgeted repairs.
Unit-title purchases require three mandatory disclosure statements:
- Pre-contract disclosure (provided before signing)
- Pre-settlement disclosure (before settlement)
- Additional disclosure (if requested)
These reveal levies, insurance details, upcoming works, maintenance plans and potential liabilities. Missing or vague disclosures can signal risk or poor governance.
Long-term Maintenance Plans & Building Health
A long-term maintenance plan (LTMP) outlines expected maintenance, repair cycles and capital works over 10 years. A weak or outdated LTMP can indicate future special levies or deferred maintenance. Lawyers help interpret LTMPs to identify financial risk.
Worried about upcoming levies?
A lawyer can review LTMPs, AGM minutes and financials to assess the true cost of ownership.
Building Insurance & Structural Risks
Unit-title buildings are insured collectively by the body corporate. Buyers must check:
- policy coverage limits
- exclusions for known defects
- earthquake/NBS ratings for older buildings
- past or ongoing insurance claims
Insurance limitations can affect finance, premiums and long-term cost.
Special Levies & Unbudgeted Costs
Special levies are one-off payments required to fund unexpected repairs or major capital works. They can be substantial — sometimes tens of thousands per unit. Reviewing AGM minutes and financial statements helps identify whether special levies are likely.
Body Corporate Governance Quality
Good governance is essential for building health. Warning signs include:
- irregular AGM meetings
- poor communication from the body corporate
- missing financial reports
- high committee turnover
- disputes between owners or with the manager
These issues often lead to mismanagement and increased long-term costs.
Find a Lawyer for Unit-title Purchases
Providing disclosure documents, maintenance plans and financial statements helps match you with lawyers who regularly advise on unit-title risks and apartment due diligence.
Buying an apartment?
We connect apartment buyers with lawyers experienced in unit-title law, body corporate issues and disclosure reviews.
Frequently Asked Questions
What is a unit-title property?
A unit-title property is a form of ownership where you own your unit and share ownership of common areas through the body corporate. Apartments, some townhouses, and multi-unit developments typically use this structure.
What are body corporate levies?
Levies fund shared building costs including insurance, maintenance, repairs, administration and long-term capital works. Levies vary significantly based on building condition, facilities and maintenance planning. Reviewing levy history and budgets is essential.
What documents should I review before buying?
You should review the pre-contract disclosure statement, long-term maintenance plan, financial records, insurance certificates, AGM meeting minutes, and any special levy notices. These documents reveal the building’s financial health and upcoming risks.
Do all apartments carry the same risk?
No. Risks vary based on construction type, age, past issues, maintenance planning, insurance claims and governance quality. Some unit-title buildings have excellent records; others face remediation or governance challenges.
Can I get finance for an apartment?
Most banks lend on apartments that meet minimum size, construction and title standards. However, buildings with remediation issues, low NBS ratings or high levies may face stricter lending criteria. Lawyers help identify red flags affecting finance.
You don’t need all the answers
Property issues can feel overwhelming — especially when you’re facing deadlines. Sharing a few details about your situation is enough for a lawyer to understand the context and guide you through the next steps.
Get Help Reviewing Unit-title Documents
Buying an apartment or townhouse under a unit-title structure requires reviewing body corporate records, disclosure statements, levies and maintenance plans. Sharing these documents helps match you with lawyers who regularly advise on unit-title due diligence.