Strata disputes over common property: Who’s responsible?
Living in a strata scheme is becoming increasingly common across Australia, especially in urban centres. Strata schemes offer shared amenities, reduced maintenance for individual owners, and a sense of community. However, disputes often arise over common property and who is responsible for repairs, maintenance, or damages. These conflicts frequently involve Building and Construction Law, requiring careful legal interpretation.
This article explores common property in strata schemes, the responsibilities of owners and owners corporations, and how disputes can be resolved effectively.
What Is Common Property?
In a strata complex, common property includes all areas shared by lot owners that are not part of individual units. Examples of common property include:
External walls, roofs, and balconies.
Lifts, stairwells, and hallways.
Car parks, driveways, and gardens.
Shared services such as plumbing, wiring, and fire safety systems.
The owners corporation (formerly known as the body corporate) is generally responsible for maintaining and repairing these areas. However, determining whether an issue relates to common or private property is not always straightforward, leading to disagreements.
Who Is Responsible for Repairs?
Responsibility for maintenance and repairs is typically divided as follows:
Owners Corporation: Responsible for maintaining and repairing all common property. For example, if a leaking roof or faulty lift needs repair, the owners corporation must organise and fund the work.
Lot Owner: Responsible for maintaining and repairing the inside of their unit, including fixtures, appliances, and finishes.
Example: If a pipe running through a wall (part of the common property) bursts and causes water damage, the owners corporation is liable for the repair. Conversely, if a leak occurs due to a private fixture, such as a washing machine within a unit, the lot owner is responsible.
Legal Framework for Strata Disputes
Strata disputes are governed by state and territory legislation, such as the Strata Schemes Management Act 2015 (NSW). Building and Construction Law also plays a role, particularly where disputes involve building defects or construction issues.
Owners corporations may be required to enforce compliance with by-laws, manage common property repairs, and arrange insurance for shared areas. Understanding these obligations is crucial for avoiding legal disputes.
Common Causes of Disputes
The most frequent causes of strata disputes include:
Confusion over whether an area is common or private property.
Disagreements over special levies to fund major repairs.
Delayed or inadequate repairs by the owners corporation.
Building defects such as cladding issues, water ingress, or structural problems.
Miscommunication or lack of transparency between lot owners and the strata committee.
How to Resolve Strata Disputes
Strata disputes should ideally be resolved through negotiation and clear communication. The typical resolution process includes:
Internal Discussion: Raise the issue with the owners corporation or strata committee. Often, disputes can be resolved quickly through open dialogue.
Mediation: If internal efforts fail, NSW Fair Trading offers free mediation services for strata-related disputes.
Tribunal Proceedings: If mediation is unsuccessful, the dispute may escalate to the NSW Civil and Administrative Tribunal (NCAT), which can make legally binding orders regarding repairs, maintenance, or costs.
Building Defects and Legal Claims
Where disputes arise due to poor construction or building defects, the owners corporation may have rights under the Home Building Act 1989 (NSW) to claim against builders or developers. These claims are time-sensitive, often requiring action within six years of completion for major defects. Seeking early legal advice is critical in these cases.
Preventing Strata Disputes
Prevention is always better than resolution. Steps to reduce disputes include:
Conducting regular inspections of common property.
Keeping transparent records of maintenance, repair costs, and committee decisions.
Educating owners about their responsibilities under the strata scheme by-laws.
Consulting legal experts when uncertainty arises over common property responsibilities.
Strata living offers many benefits, but disputes over common property can be challenging. By understanding the responsibilities outlined in Building and Construction Law and the strata legislation, both owners and owners corporations can avoid unnecessary conflicts.
