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