How to win against the owners corporation for mould in your strata apartment: A Case Study and Guide

Introduction

Strata living can present unique challenges, especially when mould becomes a serious health and legal concern in your property. Addressing mould in a strata context often involves navigating complex responsibilities between owners corporations and individual lot owners, making it essential to understand your rights and the steps required for a successful claim.

This guide draws on a real case study of a successful outcome against an owners corporation, offering practical insights for strata owners facing mould issues. By highlighting both the health risks and the legal pathways available, this article aims to empower readers to take effective action and protect their interests within their strata community.

Interactive Tool: Check Who Is Responsible for Mould in Your Strata Apartment

Understanding Mould in Your Strata Property

Common Causes of Mould in Strata Buildings

Mould growth in strata properties is often linked to moisture and inadequate ventilation. It thrives in damp, poorly aired environments, making certain areas of a building particularly susceptible. Moreover, heavy rainfall and consequential water damage can significantly increase the risk of mould developing within a strata scheme.

Several common issues can lead to mould problems within strata apartments, including:

• Water Leaks: Inadequate waterproofing or burst pipes originating from common property or another apartment can introduce excess moisture.
• Condensation: Temperature differences between a heated interior and a cold exterior during winter can cause condensation on walls and windows. Similarly, hot showers can lead to moisture buildup on bathroom surfaces, especially without proper ventilation.
• Poor Ventilation: A lack of sufficient airflow—often caused by keeping windows closed for extended periods—creates a stagnant, humid environment where mould can flourish.
• Lifestyle Factors: Certain habits not related to a failure of the common property (for example, drying laundry indoors without ventilation) can also contribute to mould growth.
• Building Design: Some strata blocks may be situated in shaded areas that receive little to no direct sunlight, further promoting damp conditions.

Health Risks Associated with Mould Exposure

Exposure to airborne mould spores can pose significant health risks, as these spores can be easily inhaled. The impact is often more severe for vulnerable individuals, such as children, the elderly, and those with asthma or compromised immune systems.

Common symptoms of mould exposure include:

• Eye, nose and throat irritation
• Breathing difficulties
• Allergic reactions

In more serious cases, exposure can result in chronic or obstructive lung diseases.

The case study at the centre of this article highlights the severe impact mould can have. For instance, one resident experienced:

• Recurrent and severe eye infections—more than one infection per month over a two-year period
• Significant periorbital swelling

These health issues were directly linked to the microbial contamination within the apartment and decreased in frequency only after she moved out.

Who is Responsible for Mould in a Strata Scheme

The Owners Corporation’s Duty to Repair & Maintain Common Property

An owners corporation has a fundamental legal duty to maintain common property in good and serviceable repair, as outlined in the Strata Schemes Management Act 2015 (NSW). If this cornerstone obligation is unmet, the corporation can be held liable for any resulting damage, including mould growth.

This liability often stems from strata building defects in shared building components. For example:

• Water penetration from a faulty common property roof
• Inadequate waterproofing membranes
• Leaking pipes within shared walls

In such cases, the owners corporation must both remedy the underlying defect and undertake mould remediation. Since common property boundaries are defined by the apartment’s floor surface and boundary walls, issues originating outside a lot fall under the corporation’s care.

Under section 106(5) of the Act, a lot owner may recover reasonably foreseeable losses caused by the corporation’s breach of duty, which can include recovering loss of rent due to common property defects. These losses can include:

• Property damage
• Loss of rent if mould renders the apartment uninhabitable

When a Strata Lot Owner is Responsible

While the owners corporation oversees common property, it’s important to understand the NSW lot owner repair & maintenance responsibilities to prevent mould growth. Liability typically falls on the owner when issues originate within a lot’s boundaries.

Owners may be held responsible for mould remediation if their actions or inactions contribute to its development. Common examples include:

• Keeping windows closed for extended periods, limiting ventilation
• Failing to use exhaust fans in high-moisture areas like bathrooms and kitchens
• Ignoring leaks from personal appliances or internal plumbing
• Lifestyle factors that increase condensation and humidity

When mould stems from an issue within the unit itself, the lot owner is generally responsible for arranging and funding remediation.

A Case Study: How We Won a Strata Mould Dispute

The Client’s Experience with Mould & Health Issues

Our client’s ordeal began shortly after moving into her strata apartment in June 2020. Over time, she started to suffer from a series of severe eye infections, which became more frequent and intense during periods of wet weather. This pattern strongly suggested an environmental cause within her unit.

Over her two-year residency, the client experienced more than one eye infection per month between July 2020 and July 2022. Delays in essential maintenance—such as waterproofing and repainting walls due to the COVID-19 pandemic—allowed dampness to persist. As a result, microbial contamination increased, further exacerbating her health problems.

Building the Case with Expert Evidence

A critical turning point in the strata dispute came from the evidence presented in a professional Mycotox Report. When investigators removed skirting boards in areas of the apartment with high moisture levels, they discovered:

• Significant hidden mould behind the paintwork
• Fungus growth concealed by walls
• Bacterial contamination in damp areas

This expert evidence was crucial, as it established a direct scientific link between the mould contamination within the strata property and our client’s recurring health issues. The report confirmed that the extent of the contamination was severe, validating the distress and physical harm the exposure was causing the resident.

The Successful NCAT Outcome & Settlement

Following the compelling evidence, legal action was taken against the owners corporation. The matter was resolved successfully through the NSW Civil & Administrative Tribunal (NCAT), which made several orders by consent. The tribunal ordered the owners corporation to repair and maintain the common property to waterproof the unit by a specified date.

The settlement also included significant financial compensation for our client. The agreed terms included:

• A substantial payment to cover damages and legal fees.
• Further compensation to cover loss of rent.
• Provisions for additional rental compensation if the repairs were not completed on time.

Furthermore, NCAT ordered that the owners corporation could not levy any contribution on our client for its legal costs in the proceedings, a crucial aspect of winning your legal costs in an NCAT strata dispute.

Your Step-by-Step Guide to Taking Action on Strata Mould

Documenting the Mould & Its Impact

When dealing with mould in a strata property, it is essential to meticulously document its presence. This process should include:

• Taking clear photographs of the affected areas from various angles to serve as strong evidence.
• Maintaining a visual record, which is vital for reporting the issue to strata management and is critical in any subsequent legal claims.

It is equally important to document any health issues you believe are linked to mould exposure. To do this:

• Consult a healthcare professional and keep comprehensive records of all medical appointments, diagnoses, and treatments.
• These medical records can become key evidence in demonstrating the health impact of the mould.

Reporting the Issue to Your Strata Manager

Upon discovering mould, you must promptly report it in writing to your strata manager or the owners corporation. Timely reporting is crucial because it creates an official record of the issue and formally alerts the responsible parties to the problem.

Your written notification should provide detailed information about the mould, including:

• Its location
• The extent of the growth
• Any suspected causes

This ensures that strata management has all the necessary information to begin their investigation and take appropriate action.

Engaging Professionals for Assessment & Remediation

Engaging a professional for a comprehensive assessment of the mould is a prudent step. Experts such as environmental consultants can:

• Accurately determine the severity of the problem
• Identify the specific type of mould
• Recommend effective remediation strategies

Their evaluation is crucial for understanding the full scope of the issue and can significantly strengthen your case.

It is generally best to avoid attempting to remediate serious mould issues yourself, as improper handling can worsen the problem and create health risks. Instead, a reputable mould remediation contractor should be hired to:

• Safely remove the contamination
• Address the root cause

Understanding Your Legal Rights & Options

Familiarising yourself with your rights under NSW strata laws is a critical step in addressing a mould problem. Understanding the legal protections and remedies available empowers you to know what to do when the owners corporation fails to repair common property defects.

If the mould issue in your strata property remains unresolved, consulting a legal professional is highly recommended. A lawyer specialising in strata law can:

• Provide clarity on your legal rights and options
• Guide you on the best course of action, which may include seeking compensation or compelling the owners corporation to carry out necessary repairs

Navigating the Legal Process with NCAT

The Role of Mediation in Strata Disputes

When disputes over mould in a strata scheme cannot be resolved directly, preparing for strata dispute mediation in NSW is often the recommended first step. This process provides a less formal setting where all involved parties can:

• Discuss their concerns with the help of a neutral mediator
• Work collaboratively toward a mutually agreeable solution

The goal is to reach an agreement before escalating the matter to a more formal legal body.

Filing an Application with the NSW Civil & Administrative Tribunal

If mediation does not lead to a resolution, the next step is to file an application with the NSW Civil and Administrative Tribunal (NCAT). NCAT is a formal tribunal that has the authority to hear strata disputes and make legally binding decisions, so it is important to understand NCAT’s power to make orders and its limitations.

It can issue orders that:

• Compel an owners corporation to carry out necessary repairs
• Require the maintenance of common property
• Direct payment of compensation for foreseeable losses, as demonstrated in the case study

Conclusion

Successfully addressing mould in a strata property requires understanding the health risks, knowing the responsibilities of both lot owners and the owners corporation, and meticulously documenting all evidence. By following a clear legal pathway, from initial reporting to engaging with NCAT, owners can effectively hold the owners corporation accountable and secure necessary repairs and compensation.

If you are facing a strata dispute involving mould in your property, seeking expert legal guidance is crucial for protecting your rights. Contact our experienced strata lawyers at PBL Law Group today to discuss your case and ensure your health and home are protected.

Frequently Asked Questions