Question: When an owner sells their unit, are they required to inform the new owner of any outstanding issues regarding repairs to the building?
Is a new owner obliged to honour the previous owner’s agreement with the strata? The previous owner agreed to carry out certain repairs in the building. Work is waiting for quotes. Must the new owner contribute funds to the repair?
When an owner sells their unit, are they required to inform the new owner of any outstanding issues related to repairs in the building? If the previous owner did not disclose this work during the sale process, are they liable for the repair?
Answer: Generally speaking, it is “buyer beware” when purchasing property.
Under the legislation, if a contribution has been raised, the new owner is jointly and severally liable with the former owner for the payment of the contribution and any interest on the contribution. If a by-law is in place, the new owner automatically assumes the responsibilities under it.
Whether the previous owner would be liable for not disclosing the repair depends on the terms of the contract and whether any requisitions on title were responded to in the course of the conveyance.
Generally speaking, it is “buyer beware” when purchasing property. As stated above, the requisitions may have shed light on this matter. Further, the new owner could have conducted a books and records search of the owners corporation to investigate the state of affairs at the strata scheme. In other words, the decision on the repairs would likely have been documented in meeting minutes that the new owner could have accessed.
This post appears in the July 2025 edition of The NSW Strata Magazine.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
with typical gaps of 3 months or so between strata committee meetings, it would be unusual for significant changes to occur in 30-90 days between signing a purchase contract and settlement
I would be doing my own due diligence before buying by seeking to speak to multiple residents and especially committee members and doing my own strata search by visiting the strata manager’s office and looking through their books – maybe $30 and half an hour well spent in my experience
Hi Sophia, Thanks for your excellent advice which accords exactly with the understanding we have developed from this pre-settlement experience. Two follow on issues now the property has settled: Firstly is how the the purchaser can authorise a nominee (who is not a co-owner) to represent their interests in all matters involving the Owner’s Corporation, the Committee and the BCM? The purchaser has sent signed, written instructions to the SEC & the BCM to this effect and has been advised that a power-of-attorney executed by a registerer solicitor is required. This does not appear to be a legislative provision of the Act and seems unnecessary? Secondly, the purchaser has asked for themselves (or their nominee) to be considered for appointment as the 3rd member of the committee (there are currently only 2 committee members covering all roles of Chair, SEC, Treasurer). The BCM has advised that even if the Owner’s Corporation and/or the Committee agree to this, it is prohibited under the 2015 Strata Schemes Mgt Act. I can find no such constraint and the legislation appears to be silent on that issue. Even if one of the two existing committee members has not vacated their office, can the number of committee members be varied between AGMs? Regards PL