Owners Corporation’s obligations to properly maintain and repair the Common Property in a timely manner Further amendments to Strata Scheme Management Act 2015 - Changes to SSM Act 2015 effective 1 July 2025 – Lot Owners extended Rights – Owners Corporations increased Liability

08/10/2025

Some observations as to the Changes to the Laws and Attitudes of Lot Owners and Owners Corporation and Advisors from Richard Watson’s Experience

Over many years Richard has observed the attitudes and behaviours of Owners Corporations (through their Officers) and affected Lot Owners in relation to the Owners Corporation’s obligations to properly maintain and repair the Common Property.

We have seen firsthand from our experience, the many different and changing scenarios and attitudes over many years.

We have acted for many Lot Owners and many Owners Corporations in relation to disputes concerning Strata Schemes in particular, relating to Strata Schemes from 2 Lots up to 100 Lots.

We have observed on a very regular basis, that Owners of a Strata Lot have not properly considered the issues that arise from ownership of a Strata Lot and the potential risks and costs associated with the ownership of the Strata Lot.

There are many varied and significant issues that arise.  We are experienced as to the application of the laws, the relationship between persons, and the operations and processes of the Courts and New South Wales Civil and Administrative Tribunal and alternatives available.

The disputes and resolutions depend upon the attitudes of the various Lot Owners who own the Lots within a Strata Scheme. There are many reasons given when questions arise as to why the Owners Corporations fail to comply with many of their obligations in particular, in a timely manner.  Similarly, this applies to Lot Owners who do not comply with their obligations.

Lot Owners including the Office Bearers (namely Chairperson, Secretary and Treasurer) and other Committee Members and Strata Manager have many and numerous different reasons to explain why they for example, act as they do in response to situations that arise.

Issues in Relation to Maintenance and Repair of Strata Schemes

The various Lot Owners have different financial positions, capacity and ability to comply with the Owners Corporation’s obligations.

One common issue over decades relates to the Owners Corporations’ obligation to maintain and repair Common Property.

Section 106 of the Strata Schemes Management Act 2015 provides in effect, for the rules that apply for the Owners Corporation to maintain the common property and the consequences of failing to do that.

Also there are other factors that bear on the issue as to who is responsible and their extent of the responsibility to maintain the Strata Scheme buildings.  One of the main factors that appear, and is rarely considered by purchasers in particular of a renovated Unit (following registration of the Strata Plan) or persons applying to renovate their existing Unit, is the extent and effect of the by laws. The critical issue is whether there are by laws that apply to these circumstances, namely the renovations.  These by laws provide for who is responsible for maintenance and repair and what is the separate responsibility of Lot Owners on the one hand and separately, what is the Owners Corporation’s responsibility.  This has to be considered in conjunction with Section 106 of the SSM Act. Care is required to understand the relationship between each person’s obligations and potential liability to others who suffer losses from failure of the building structure affecting Lots owned by others and separately, the common property.

This is a factor that bears on the value of a Lot in a particular Strata Scheme.  This appears often not to be considered by purchasers, persons wishing to renovate their Unit and in the unfortunate circumstances, where there are damages caused by the failure of the building structure.

We are usually requested to assist only after a “problem” occurs and in dealing with the problem, we will consider and discuss the alternatives available and possible outcomes.

Strata Buildings require regular maintenance, repairs and replacements. The cost of undertaking the appropriate maintenance, repairs including periodic reoccurring expenses for works, could be significant.

A Building not properly maintained for example, for in excess of 10 years will require greater and more expensive maintenance to bring the building to the required level of maintenance.

Constant Review Required

The Owners as members of the Owners Corporation need to review their position from time to time as to the suitability of the maintenance programme and costs allocated for undertaking those specific works. As buildings age, more maintenance, repair and replacements are required.

Funding Required

The Owners Corporation must put in place appropriate funding primarily, by way of levies to be paid by each of the Lot Owners (having regard to their respective Unit Entitlement), to cover the costs of running the Owners Corporation and associated expenses including the costs of maintaining, repairing and replacements required together with contingences relating to possible and likely expenses of the Strata Scheme.

The Owners Corporation must set contributions to each of the Administrative and Capital Works Funds (Section 81 of SSM Act 2015).

Capital Works Fund Required

The Strata Schemes Management Act 2015 (Section 80 of SSM Act 2015), requires that the Owners Corporation prepare a 10 year Capital Works Fund Plan, which must include the following:

1. details of proposed work or maintenance,
2. the timing and anticipated costs of any proposed work,
3. the source of funding for any proposed work,
4. any other matter the owners corporation thinks fit,
5. any other matter prescribed by the regulations for the purposes of this section

There are organisations who can assist the Owners Corporation (and the Strata Committee and Strata Managing Agents) to prepare an appropriate programme of works and estimated cost to enable the preparation of the Capital Works Fund Plan.

Contact Us – Our Experience Assists Resolution

Our experienced Lawyers at Watson & Watson can assist you in relation to all aspects of Strata issues whether you are a Lot Owner, the Owners Corporation or Strata Managing Agent.  Seeking appropriate advice as soon as an issue arises, is paramount and enables you to make an informed decision at the outset.

Do not delay seeking advice, contact Watson & Watson, experienced Lawyers and Law Society Accredited Specialist Commercial Litigation in the stream of Building and Construction, by contacting us to arrange an appointment to discuss your important issues, by contacting Richard Watson Principal or his Personal Assistant Shereen Da Gloria to discuss your matter and seek appropriate timely advice.

The above in our view is not based on your particular factual matters, and it is critical that one considers the factual matters and the law that applies to your circumstances. The above is not to be taken as legal advice to be relied upon, without first contacting Richard Watson as referred to above.

This is only a preliminary view and is not to be taken as legal advice without first contacting Watson & Watson Solicitors on 9221 6011.