NSW Lot Owner Repair & Maintenance Responsibilities

Introduction

In any NSW strata scheme, a clear distinction exists between the responsibilities of the owners corporation and the individual lot owner. While the body corporate handles the repair and maintenance of common property, the responsibility of the lot owner is to repair and maintain their own lot, but this division can often lead to complex strata disputes over who bears the responsibility for certain repairs.

This guide clarifies the specific repair and maintenance duties that fall to the lot owner under NSW strata law. Understanding these obligations is essential for avoiding liability for property damage and ensuring cooperative living, and consulting a strata lawyer can provide critical guidance when disagreements arise over property boundaries and responsibilities.

Identifying What Constitutes Lot Property for Strata Property Owners

Understanding the Airspace Concept

A general rule in NSW strata law is that a lot owner is responsible for everything within the airspace of their unit. This typically includes:

• All internal walls
• Fixtures inside the lot

This establishes a basic boundary for the responsibility of the lot owner. Understanding this concept is the first step in distinguishing private property from common property.

This principle also helps define the scope of repair and maintenance duties. While the owners corporation handles common areas, the lot owner must repair and maintain the property contained within their lot’s airspace.

Checking the Strata Plan & By-laws

For a definitive answer on property boundaries, the strata plan is the most important document. It provides a detailed diagram of the lots and common property, clarifying exactly where a lot owner’s responsibilities begin and end.

These plans are essential for resolving any uncertainty. In addition to the strata plan, the scheme’s by-laws can specify maintenance obligations for both the lot owner and the owners corporation.

Because interpreting these documents can be complex, consulting a strata lawyer is often advisable to gain clarity on who bears the responsibility for specific repair and maintenance tasks.

The Role of the Common Property Memorandum

A strata scheme in NSW may adopt a common property memorandum to further clarify responsibilities. This is a standard template from the NSW Government that lists precisely what is considered common property versus lot property.

However, this memorandum is not automatically applied to all strata properties. It only becomes legally binding if the owners corporation passes a specific by-law to adopt it for their strata scheme.

If adopted, it serves as a clear reference for both the lot owner and the body corporate.

Specific Repair & Maintenance Duties for the Lot Owner

Maintaining Internal Walls & Floor Coverings

The responsibility of the lot owner in NSW extends to the repair and maintenance of all property within their lot’s airspace. This includes the upkeep of internal walls, which is a core duty for each owner in a strata scheme.

A lot owner must also manage any cosmetic finishes within their unit. These responsibilities typically include:

Responsibility	Details
Internal painting & wallpapering	Any decorative finishes on the walls fall to the owner to repair and maintain.
Floor coverings	The lot owner is responsible for the maintenance and repair of carpets and other floor coverings inside their property.

Responsibility for Internal Plumbing & Fixtures

A lot owner is accountable for the maintenance and repair of plumbing infrastructure located within the internal walls of their unit. This duty ensures that fixtures serving the individual lot are kept in good working order.

The specific fixtures that a lot owner must repair and maintain include:

• Baths and showers
• Toilets
• Sinks and basins

Managing Appliances & Exclusive Service Lines

The responsibility of the lot owner also covers any equipment or service lines that exclusively serve their apartment or unit. If an appliance or utility line is not shared with other lots or the common property, its maintenance and repair falls to the individual owner.

Examples of such exclusive-use items include:

• Pipes, cables, and wiring that only service one lot
• Drains connected solely to the owner’s unit
• Equipment such as air conditioning units, clothes dryers, or hot water systems that are for the exclusive use of that lot

Addressing Damage Originating from the Lot

A lot owner bears the responsibility for any water damage that comes from inside their property. If a leak starts from a pipe under a kitchen sink or a faulty internal fixture, the owner must arrange and pay for the repairs.

Furthermore, a failure to maintain lot property can lead to broader liability. Lot owners may be held responsible for any resulting damage caused to common property or other lots due to their lack of maintenance.

Obligations to Prevent Nuisance & Hazard in a Strata Scheme

Complying with Section 153 of the Strata Schemes Management Act 2015 (NSW)

In NSW, a lot owner has a legal duty to ensure their property does not negatively affect others within the strata scheme. This responsibility is outlined in Section 153 of the Strata Schemes Management Act 2015 (NSW) (SSMA), which requires that a lot is not used in a way that causes a nuisance or hazard to another resident.

This obligation is a core component of strata law, promoting a peaceful living environment for everyone. As a result, a lot owner must be mindful of how their activities impact their neighbours. Actions that could be considered a nuisance or hazard include:

• Generating excessive noise that disturbs others.
• Allowing conditions within the lot to create health or safety risks.
• Hoarding or composting that produces foul odours and attracts vermin.

Avoiding Damage to Common Property & Other Lots

The responsibility of the lot owner to repair and maintain their property also involves preventing damage to common property or other lots. Neglecting issues within a lot can lead to significant problems for the entire strata scheme, and the lot owner may be held liable for any resulting damage.

For instance:

• A failure to fix a leaking tap inside a unit could cause water to seep into common property walls or the apartment below.
• If a balcony’s tiling and grout are not maintained, water may leach into the building’s structure, staining newly painted common property.

In such cases, the lot owner bears the responsibility for the consequential damage caused by their failure to repair and maintain their own lot property.

The Duty of the Lot Owner to Cooperate with the Owners Corporation

Providing Access for Common Property Repairs

A lot owner in NSW is expected to cooperate with the owners corporation to facilitate the repair and maintenance of common property. The owners corporation has a strict duty to keep these shared areas in good order, and fulfilling this obligation sometimes requires access to an individual lot to inspect or resolve issues.

When necessary, the lot owner must provide reasonable access to their property. This cooperation is vital for the efficient management of the strata scheme and ensures that problems affecting common property can be addressed promptly.

If there is uncertainty about access rights, consulting a strata lawyer can help clarify the responsibilities for both the lot owner and the body corporate.

Consequences of Delaying Necessary Maintenance

Denying access or otherwise obstructing the owners corporation from carrying out its duties can have significant consequences. Such actions can delay essential repairs, which impairs the body corporate’s ability to meet its legal obligations for the maintenance and repair of common property.

A lot owner’s unreasonable conduct that prolongs necessary repairs may also undermine their ability to claim damages for any losses suffered. For instance:

• If a lot owner’s actions delay the fixing of a leak, they may not be able to recover compensation for lost rent.
• Their own behaviour could be seen as the primary cause of the extended damage.

Case Study on The Owners Strata Plan No 2661 v Selkirk

Background of the Dispute Regarding Common Property Leaks

The case of The Owners – Strata Plan No 2661 v Selkirk [2024] NSWSC 760 offers important insights into the responsibilities of a lot owner. In this matter, a lot owner claimed damages for lost rent, arguing that a leak from common property had made her apartment uninhabitable. The owners corporation admitted it had breached its duty under section 106(1) of the SSMA to repair and maintain the common property.

However, the New South Wales Civil and Administrative Tribunal (NCAT) found that the extended loss of rent was primarily caused by the lot owner’s own unreasonable conduct. Instead of allowing the owners corporation to carry out the necessary leak repairs promptly, she insisted on pursuing extensive bathroom renovations through her insurer.

As a result, the Tribunal concluded that her actions, not the body corporate’s breach, were the main reason for her prolonged losses. Her claim for damages was therefore dismissed.

The Supreme Court Ruling on Lot Owner Conduct & Damages

Upon appeal, the NSW Supreme Court clarified the legal duties for both the lot owner and the owners corporation in a strata scheme. The Court reaffirmed that:

• An owners corporation has a strict duty under section 106(1) of the SSMA to repair and maintain common property.
• A breach occurs if the common property is not kept in good repair, regardless of whether reasonable care was taken.

However, the Court also established that a breach does not automatically entitle a lot owner to damages. Under section 106(5) of the SSMA, the lot owner must prove their losses occurred “as a result of” the breach.

If a lot owner’s unreasonable conduct, such as delaying access for repair and maintenance, extends the damage, it can break the chain of causation. This case underscores that a lot owner’s cooperation is vital, and unreasonable behaviour that prolongs repairs may significantly reduce or even negate their ability to claim damages.

This highlights the importance of consulting a strata lawyer to clarify obligations.

Why Strata Property Owners Should Consult a Strata Lawyer

Clarifying Boundaries Between Lots & Common Property

The division of property in a strata scheme can be complicated, often leading to issues over who bears the responsibility for repair and maintenance. While the basic rule is that a lot owner is responsible for the airspace within their unit, the strata plan and by-laws provide the definitive clarification on property boundaries.

A strata lawyer can interpret these important documents to determine whether the lot owner or the owners corporation is responsible for a specific repair. In some cases, documents may conflict, such as when a strata plan notation differs from a common property memorandum. In these situations, a legal professional can provide crucial advice on which document prevails. This ensures that:

• The responsibility of the lot owner is clearly defined
• Costly errors in undertaking repairs are prevented

Assistance with Disputes & Liability for Repairs

Disagreements can arise over the scope of necessary repairs or liability for damages, particularly when a lot owner’s failure to repair and maintain their property causes issues for others. A lot owner may be held liable for consequential damage to common property or other lots resulting from a lack of maintenance within their own lot.

Legal professionals can provide essential assistance in these disputes. For instance, the case of The Owners – Strata Plan No 2661 v Selkirk [2024] NSWSC 760 highlighted that a lot owner’s unreasonable conduct can affect their ability to claim damages from the body corporate.

A strata lawyer can help navigate the complexities of liability and causation under the SSMA and represent a lot owner’s interests in the NCAT if a dispute cannot be resolved.

Conclusion

A lot owner in a NSW strata scheme has a clear responsibility to repair and maintain their own property and must cooperate with the owners corporation for any necessary common property works. Understanding these duties, from managing internal fixtures to preventing nuisance, is essential for avoiding liability and ensuring a well-functioning body corporate.

For tailored guidance on your specific situation and to ensure compliance with strata law, reach out to our expert strata lawyers at PBL Law Group today. Our team possesses trusted expertise in the responsibilities of the lot owner and can provide the advice and support you need to manage your strata property effectively.

Frequently Asked Questions