Win for Lot Owner: New Owner Held Liable for Previous Owner’s By-Law Breach

Key Takeaways

  • Binding Rule: Under section 135(1) of the Strata Schemes Management Act 2015, all owners and the owners corporation are bound by by‑laws regardless of when they purchased the lot, so the new owner automatically inherits compliance obligations.
  • Liability Outcome: The Tribunal held that a special by‑law expressly binding executors, administrators, successors or transferees also binds the current owner, obliging the new owner to rectify the non‑compliant floor.
  • Remedy Path: Affected neighbours can commence proceedings in the NSW Civil and Administrative Tribunal to obtain an order requiring the owner to remedy the breach and protect their right to quiet enjoyment.
  • Key Warning: New purchasers must conduct thorough due‑diligence on existing by‑law compliance before settlement; failure can lead to enforced rectification and significant costs.
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Introduction

A common strata question arises when you buy an apartment, only to discover the previous owner’s renovation is in breach of a strata by-law. Are you, the new owner, responsible for fixing it? The answer is unequivocally yes.

In this 2025 case, PBL Law Group successfully represented an affected lot owner, holding a new owner accountable for a by-law breach they had inherited.

The Facts

In 2022, the previous owner of an apartment (Lot 5) passed a special by-law to carry out renovation works, including the installation of new hard floors. The Respondent purchased Lot 5 in November 2023, after this by-law was already registered and the works (allegedly) completed.

The by-law, which required a strict “5 star” acoustic rating, was already in effect and binding on the lot when the new owner took ownership.

The Problem

The new owner (Respondent) was in breach of the by-law because the floor installed by the previous owner was non-compliant. Even though the Respondent did not personally install the faulty floor, the breach was ongoing, and our client, the downstairs owner, was suffering from the resulting noise transmission, a common example of the noise problems in strata that can arise.

The Respondent was now liable for a breach created by their predecessor.

Application to the Tribunal

PBL Law Group, acting for the affected downstairs owner, commenced a strata dispute in NCAT against the current owner (the Respondent).

We argued that under section 135(1) of the Strata Schemes Management Act 2015 (NSW), by-laws are binding on all owners and the owners corporation, regardless of when they purchased their lot . The obligation to comply is not tied to the owner who did the work; it is tied to the lot itself.

The Decision

The Tribunal confirmed this fundamental legal principle. The Senior Member noted that the by-law itself explicitly stated it binds “any of the Owner’s executors, administrators, successors… or transferees”.

Furthermore, the SSMA defines an “owner” as the person “for the time being recorded in the Register”. The Tribunal proceeded on the “unchallenged assumption that Special By-Law 1 is binding on the Respondent” and ultimately found her in breach and ordered her to rectify the floor.

Conclusion

The case shows that a new owner “inherits” both the apartment and its compliance obligations. It shows that an owner cannot escape liability for a by-law breach by arguing a “previous owner” did the work. This win for PBL’s client confirms that the current owner is responsible for fixing current breaches of a by-law, providing a clear path for neighbours to seek orders and protect their right to quiet enjoyment.

If you are facing a similar issue or require expert guidance on any aspect of strata living, it is crucial to seek specialised legal advice. Contact our experienced strata lawyers at PBL Law Group for assistance.

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Last Updated on December 13, 2025
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