Question: An owner’s apartment flooded and damaged adjacent lots. The OC paid to find the cause of the leak. Although the cause was attributed to the owner, they refused to pay. Where does OC stand?
An owner in our Melbourne unit complex flooded their apartment, causing damage to adjacent lots. The owners corporation paid for plumbers to check common pipes and find the cause of the leak. No leaks were detected, and the cause was attributed to overflow from an internal sink or bath.
The owner states they will not pay for any assessment work or damage reclamation. Where does owners corporation stand?
Answer: See Section 49 of the Act.
In our view, it is always prudent for an owners corporation to investigate water ingress issues if there is a potential a common property defect causes the issue.
Section 49 of the Owners Corporations Act 2006 provides that:
- An owners corporation may recover as a debt the cost of repairs, maintenance or other works carried out wholly or substantially for the benefit of one or some, but not all, of the lots affected by the owners corporation from the lot owners.
- The amount payable by the lot owners is to be calculated on the basis that the lot owner of the lot that benefits more pays more.
- The works referred to in this section may be to the common property or a lot.’
Investigations can be included in the above. There is an argument that the owners corporation can pass on the cost under the above section to the relevant lot owner who has the water ingress defect.
This post appears in Strata News #706.
Phillip Leaman
Tisher Liner FC Law
E: ocenquiry@tlfc.com.au
P: 03 8600 9370
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