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Home » Committee Concerns » Committee Concerns NSW » NSW: Is the owners corporation responsible despite pre purchase due diligence?

NSW: Is the owners corporation responsible despite pre purchase due diligence?

Published April 15, 2026 By Michael Ferrier, Eyeon Property Inspections Leave a Comment Last Updated April 15, 2026

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Question: Would the lack of adequate stormwater drainage and the absence of a waterproofing membrane on a balcony be the owners corporation’s responsibility?

Would the lack of adequate stormwater drainage under a slatted wooden floor on a balcony and the absence of a waterproofing membrane on the concrete balcony floor be the owners corporation’s responsibility? The lot owner carried out pre-purchase inspections of the owners corporation’s records under the legal principle of “caveat emptor”?

Does this principle apply under current legislation? Does the owners corporation have any protection at law?

Answer: Generally speaking, the owners corporation will be responsible for any structural elements of the building.

It’s difficult to provide any specific feedback without more information. Generally speaking, the owners corporation will be responsible for any structural elements of the building itself. This usually includes balconies.

It sounds like there have been some water ingress issues in this case and it appears that some wooden slats sit on top of the balcony floor. If the slats have been installed by the owners and they have resulted in water ingress, there may be issues in holding the owners corporation responsible for any water damage.

If the drainage system from the balcony is insufficient to drain water from the balcony effectively, the owners corporation may be responsible. It’s not so much an issue of whether the purchaser undertook due diligence before purchasing the property. Rather it will be a question of whether the balcony is considered part of the common property of the building or part of the lot.

This post appears in the March 2023 edition of The NSW Strata Magazine.

Michael Ferrier
Eyeon Property Inspections
E: michael.ferrier@eyeon.com.au
P: 02 9260 5510

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About Michael Ferrier, Eyeon Property Inspections

Michael Ferrier is the Founder and MD of EYEON Property Inspections, home of the innovative property inspection models, such as Open Access and EYEON Zero.

He has over 30 years of experience across government policy, financial services, banking, franchising, building small businesses and, of course, real estate.

Michael is also a member of the Strata Community Association and has appeared on The Elephant in The Room Property Podcast.

When Michael is not occupied with problem-solving or helping clients, he enjoys playing golf and trying a new beer or red wine, but not at the same time.

Michael is a regular contributor to LookUpStrata. You can take a look at Michael’s articles here .

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