Question: What does the extended limitation period for damage claims under Section 106(6) mean for lot owners?
Answer: Instead of an owner having only two (2) years from when the loss occurred to bring a claim for damages arising from a maintenance failure, they now have six (6) years to bring the claim.
The extended limitation period means that instead of an owner having only two (2) years from when the loss occurred to bring a claim for damages arising from a maintenance failure, there is now an additional four (4) years, totalling six (6), to bring the claim.
This means an owner has a lot more time to prepare their case before their rights to claim is statute barred. This is benefits owners and owners corporations as it also allows the parties more time to possibly resolve such a dispute without requiring an owner to file at NCAT to preserve time.
However, the exact implementation of this extension is to be clarified in the regulations, so we would have to wait and see how it will roll out.
This post appears in Strata News #744.
Matthew Lo Kerin Benson Lawyers E: enquiries@kerinbensonlawyers.com.au P: 02 8706 7060