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NSW: Is the owners corporation responsible for repairing damage in lots caused by persistent water leaks?

NSW strata information

Question: Our strata plan has had persistent water leaks for years. The owners corporation rejected a consultant’s proposal for remediation of the building. Is the owners corporation responsible for repairing the resultant damage in lots to walls and window coverings?

Our strata plan has had significant water leaks for many years.

Last year, a consultant’s report and scope of work to remediate the entire building was rejected by the owners corporation at a general meeting.

Many owners continue to have water leaking into their units around the windows, through the ceiling, etc.

The water leaks have been going on for many years. There have been many quick fix-ups and patches, but nothing substantial has been done to stop the water from entering the building.

The owners corporation has failed to maintain the property in a good, safe state of repair. Our strata management company recently terminated their agreement because they felt our owners corporation was in breach of strata legislation.

Would the owners corporation be responsible for repairing damaged walls, window coverings, etc, which is a direct result of not attending to appropriate building maintenance, even if the owners have contents insurance?

Answer: If the source of the leaks causing the damage to walls is arising from locations involving common property, then it is likely owners corporation’s responsibility.

The owners corporation has the duty to maintain and repair common property. Section 106 of the Strata Schemes Management Act 2015 in this regard relevantly provides:

    1. An owners corporation for a strata scheme must properly maintain and keep in a state of good and serviceable repair the common property and any personal property vested in the owners corporation.
 
    1. An owners corporation must renew or replace any fixtures or fittings comprised in the common property and any personal property vested in the owners corporation.
 
  1. This section does not apply to a particular item of property if the owners corporation determines by special resolution that–
      1. it is inappropriate to maintain, renew, replace or repair the property, and
     
    1. its decision will not affect the safety of any building, structure or common property in the strata scheme or detract from the appearance of any property in the strata scheme.

I imagine the report from the consultant would have identified those aspects that are common property. If the source of the leaks causing the damage to walls is arising from locations involving common property, it is likely a responsibility of the owners corporation.

From your email, the water leaks are a major issue for the building. As such, it does not appear to me that section 106(3) would apply in this instance.

Pierrette Khoury Khoury Lawyers E: pierrette@khourylawyers.com.au P: 0415 459 486

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