Win for Lot Owners: Repairs Enforced and Lost Rent Recovered

Introduction

When an owners corporation delays repairing common property, the consequences can escalate quickly. Water ingress, mould growth, structural failure, and defective works can render an apartment uninhabitable, leaving lot owners facing both disruption and financial loss.

Owners corporations often respond with excuses about cost, contractor availability, or “temporary” fixes. In more contentious disputes, they may appeal decisions or attempt to obstruct access to evidence.

In a series of recent matters across NCAT and the Supreme Court of NSW, PBL Law Group has successfully compelled owners corporations to:

• Carry out full, compliant rectification works;
• Abandon inadequate repair methods;
• Disclose critical documents; and
• Compensate lot owners for economic loss, including lost rent.

These cases demonstrate how lot owners can enforce their rights and how strategic legal advocacy makes the difference.

Forcing Proper Repairs Under Section 106

In The Owners-Strata Plan No 79633 v Graorovska [2022] NSWCATAP 152, PBL Law Group represented a lot owner whose apartment suffered long-standing water ingress and associated defects.

The owners corporation proposed superficial measures, including sealant applications and partial works, rather than proper replacement of defective waterproofing and structural elements.

PBL secured detailed, on-site expert evidence demonstrating that these measures would not discharge the owners corporation’s statutory duty under Section 106 of the Strata Schemes Management Act 2015 (NSW).

The Tribunal preferred the lot owner’s expert evidence and ordered comprehensive rectification, including full bathroom replacement works.

When the owners corporation appealed, alleging procedural unfairness and error, PBL successfully defended the appeal. The Appeal Panel dismissed the appeal in its entirety and upheld the repair orders.

The decision reinforces a clear principle: Owners corporations cannot satisfy section 106 through cosmetic or temporary solutions. The duty requires genuine compliance.

Recovering Lost Rent When Repairs Fail

Where an owners corporation’s breach renders an apartment uninhabitable, the financial consequences can extend beyond repair costs.

In Byrne v Strata Plan [2021] NSWSC 342, PBL Law Group acted for a lot owner whose apartment suffered severe water damage and mould. A settlement deed required remediation works, but the owners corporation failed to perform them. As a result, the property could not be leased as planned.

PBL commenced proceedings in the Supreme Court seeking damages for breach of the deed. A key strategic focus was proving the owner’s clear intention to rent the property.

The Court accepted that evidence and awarded damages for lost rental income, plus interest.

The case confirms that where breach causes measurable economic loss, courts will award compensation, provided intention, causation, and quantum are properly established.

Owners corporations and lot owners sometimes attempt to rely on product marketing or informal assurances to claim compliance with strata by-laws.

In a recent case, PBL represented a lot owner affected by non-compliant hard flooring installed in an upstairs apartment. The by-law required a “5-star” acoustic rating. The respondent argued that purchasing a product marketed as “5-star” was sufficient.

PBL demonstrated that the rating was a measurable performance standard requiring scientific, in-situ testing of the installed system. Scientific acoustic testing confirmed the floor failed to meet the required standard.

The Tribunal issued a work order compelling rectification, sending the clear message that compliance must be objectively demonstrated, not merely claimed.

Overcoming Procedural Obstruction

Complex strata disputes often involve attempts to withhold documents or assert vague privilege claims to avoid scrutiny.

In recent proceedings involving building defect compliance disputes, PBL successfully challenged an owners corporation’s claim of legal professional privilege over engineering documents and instructions. The Tribunal rejected the objection and ordered disclosure, ensuring that expert evidence could be properly tested.

Control of the procedural landscape often becomes decisive in securing substantive outcomes.

Conclusion

Owners corporations cannot rely on delay, cost concerns, or superficial fixes to avoid their statutory obligations.

PBL Law Group has multiple strata dispute wins for lot owners in NCAT and the Supreme Court, securing comprehensive rectification orders; dismissal of weak appeals; enforcement of measurable compliance standards; and compensation for economic loss arising from breach.

If your apartment has suffered damage due to defective common property, or if repair delays are causing financial harm, it is critical to obtain specialist legal advice. Contact PBL Law Group’s experienced strata dispute lawyers to protect your property, your rights, and your investment.