VIC: Pipe outside the lot but servicing only one unit: Who pays for repairs?

Question: If the pipe only services one lot, is that lot owner responsible for any repairs? Because the pipe is outside the boundary of the unit, our strata manager says it’s common property. Is this correct?

A leak has been identified in unit A. A leak detection service investigated and determined the leak was under the slab of the unit located across from unit A. The pipe services hot water only to unit A, and unit A is the only lot impacted.

Because the pipe is outside the boundary of unit A on the Plan of Subdivision, our strata manager and her line manager both say it’s common property. If the pipe only services one lot, is that lot owner responsible for any repairs?

The owners corporation doesn’t have enough in our sinking fund to cover the repair. We have raised a special levy to pay for the works.

We are concerned that insurance will not cover the repair as it may be determined as wear and tear.

Is the owners corporation responsible for repairs? We don’t want to waste owners corporation’s money unnecessarily, especially in these times.

Answer: The sole purpose of the pipe will determine the responsibility to repair and maintain it in this situation.

The sole purpose of the pipe will determine the responsibility to repair and maintain it in this situation.

If you have not already done so, we suggest you obtain a copy of the plumber’s report which should confirm the location of the pipe and any lot(s) which it services.

In accordance with the Act and as noted on the Consumer Affairs website, “The owners corporation is responsible for the common property – the Owners Corporations Act 2006 states that the owners corporation must, among other things, manage, administer, repair and maintain the common property.”

You have noted above that the pipe exclusively services lot A, and only lot A is impacted by the issue.

Section 129 of the Act states:

A lot owner must—

1. properly maintain in a state of good and serviceable repair any part of the lot that affects the outward appearance of the lot or the use or enjoyment of other lots or the common property; and
2. maintain any service that serves that lot exclusively.

We suggest that, if the plumber’s report fails to confirm the location/purpose of the pipe, contact the plumber to confirm the usage/service and to include that with the report.

It might be possible for you to claim this under insurance; however, this would depend on the excess payable and whether that outweighs the cost of the repairs. Further, the insurer will require a report from the plumber as to what caused the pipe to crack/burst. You would then need to check this against your policy to determine whether coverage is provided.

Without viewing the report and based on your comments above, this is likely a private lot owner responsibility, and all costs of rectification should be borne by lot A. Provide the owner of this lot with the report from the plumbers and relevant sections of the Act to advise that they are responsible for the repairs.

This is also stipulated under section 16(1) of the Water Act 1989, which states:

1. If—
   
   1. there is a flow of water from the land of a person onto any other land; and
   2. that flow is not reasonable; and
   3. the water causes—
      
      1. injury to any other person; or
      2. damage to the property (whether real or personal) of any other person; or
      3. any other person to suffer economic loss—
         
         the person who caused the flow is liable to pay damages to that other person in respect of that injury, damage, or loss.

Should you still require further clarification, we strongly encourage you to obtain independent legal advice.

This post appears in the August 2023 edition of The VIC Strata Magazine.

Sim Firns
The Knight
Email
P: 03 9509 3144