Key Takeaways

• The Owners Corporation Has a Strict Duty to Repair: Under Section 106 of the strata legislation, the Owners Corporation (OC) has a strict, absolute duty to maintain and repair common property. This includes fixing the source of leaks from areas like roofs, external walls, and waterproof membranes.
• Lot Owners are Responsible for Their Own Lot: A lot owner is responsible for preventing and fixing leaks originating from within their lot, such as from taps, toilets, appliance hoses, or internal waterproofing failures. They are also responsible for damage to their own internal finishes (paint, carpet) and personal contents.
• Always Report Leaks in Writing: When you discover a water leak, immediately notify your strata manager or committee. Follow up any phone call with a detailed email, including photos. This creates a formal, dated record that officially triggers the OC’s legal duty to investigate and act.
• The Source of the Leak Determines Responsibility: The party responsible for fixing the leak is determined by where it originates. The OC pays to fix common property sources, while the lot owner pays to fix sources within their lot. The OC is generally responsible for investigating the source.
• You Must Have Your Own Contents Insurance: The OC’s building insurance does not cover your personal belongings or internal finishes like carpets, floating floors, and paint. You need your own contents insurance policy to cover damage to these items.

Introduction

Water ingress is one of the most common and destructive issues affecting strata properties in NSW. A seemingly minor leak can quickly escalate, leading to significant water damage, mould growth, and costly repairs, causing considerable frustration and financial strain for the owners corporation (OC) and lot owners.

Effectively managing these situations hinges on clearly understanding the legal responsibilities outlined in the Strata Schemes Management Act 2015 (NSW). This guide provides practical, actionable advice for lot owners and strata committees on how to prevent water ingress, what to do when a leak occurs, and how to navigate the duties required to repair and manage water damage within a strata scheme.

Legal Responsibilities for Water Ingress in NSW Strata

The Owners Corporation’s Duty to Maintain Common Property

Under Section 106 of the Strata Schemes Management Act 2015 (NSW), the OC has a strict and absolute duty to maintain and repair common property. This means the OC is responsible for fixing defects in common property, regardless of the cause. They cannot use excuses like a lack of funds or delays in passing resolutions to avoid these obligations.

When water ingress occurs due to a failure of common property, the OC immediately breaches this duty.

Common property generally includes any areas used by all residents or elements of structural importance. The specific boundaries are defined in your strata plan, but typically include:

Common Property Area	Description / Includes
Roofs & Gutters	The entire roof structure, waterproof membrane, flashing, gutters, and downpipes.
External & Boundary Walls	Structural walls, foundations, external cladding, and render.
Balconies & Waterproofing	The structural slab of a balcony and, crucially, the waterproof membrane underneath the tiles.
Shared Plumbing & Pipes	Utility infrastructure servicing more than one lot, such as main water pipes, drainage systems, and pipes located within boundary walls or floors.
Windows & External Doors	Frames and glass of windows and doors that form part of the building’s external envelope.

The Lot Owner’s Responsibility for Their Private Lot

A lot owner is responsible for maintaining and repairing everything contained within the airspace of their lot. This responsibility is outlined in Section 126 of the Strata Schemes Management Act 2015 (NSW), which requires owners to prevent issues within their lot from causing damage to common property or another lot.

The repair falls to the owner if a leak originates from within a private lot.

The lot owner’s responsibilities generally cover:

Lot Property Area / Item	Description / Includes
Internal Finishes	Paint, wallpaper, plasterboard, carpets, and floorboards applied to the surfaces of walls, floors, and ceilings inside the lot.
Internal Plumbing & Fixtures	Leaks from taps, shower heads, toilets, and sinks, as well as the pipes connecting these fixtures to the main utility lines.
Appliances & Connections	Any leaks from appliances like dishwashers, washing machines, or internal hot water systems, including their connecting hoses.
Bathroom & Wet Area Maintenance	Waterproofing within their bathroom and laundry areas, including ensuring silicone sealants around showers and baths remain intact.
Personal Contents	Damage to personal belongings, such as furniture, electronics, or cars (requires separate contents insurance).

Proactive Maintenance Tips to Prevent Water Damage

Owners Corporation Prevention Checklist

The OC should implement a proactive maintenance schedule for all common property to prevent water ingress and avoid costly repairs. A well-managed plan, funded through the capital works fund, is the best defence against water damage in strata properties.

Key preventative actions for the OC include:

Preventative Action	Description / Recommendation
Annual Roof & Gutter Inspections	Engage a qualified roofer to conduct annual inspections, checking for cracked tiles, rusted metal, and deteriorated flashing or seals.
Regular Gutter & Downpipe Cleaning	Clear gutters and downpipes of debris at least twice a year, especially before storm season, to prevent overflows into the roof or walls.
Façade & Window Sealant Checks	Regularly inspect sealant around window frames and joints, budgeting for replacement every 7–10 years to maintain a weatherproof exterior.
Drainage & Stormwater System Maintenance	Keep all common property stormwater drains, pits, and grates clear to ensure proper water flow and prevent pooling.
Balcony & Planter Box Audits	Conduct routine audits for cracked tiles or failing grout, which can indicate compromised waterproof membranes.

Lot Owner Prevention Checklist

While the OC is responsible for common property, lot owners play a crucial role in preventing water damage by maintaining the items within their lot. Simple checks can help avoid internal flooding and damage to your property and neighbouring lots.

Your prevention checklist should include:

Preventative Action	Description / Recommendation
Inspect Bathroom & Laundry Sealants	Regularly check silicone sealant around showers and baths; if cracked or peeling, it should be removed and replaced to prevent seepage.
Check Appliance Hoses	Inspect flexible hoses for washing machines and dishwashers for bulges or cracks, and consider replacing them every few years.
Address Leaks Promptly	Repair dripping taps or running toilets without delay to prevent water waste and potential plumbing failures.
Know Your Water Shut-Off Valve	Locate your main water shut-off valve (stopcock) to quickly stop water flow in an emergency like a burst pipe.

Common Causes & Sources of Strata Water Leaks

Water ingress in strata properties can stem from various sources, ranging from major failures in common property to minor issues within a private lot. Identifying the precise origin of a leak is a critical first step, but this can be challenging due to the complex network of pipes and structures hidden within strata buildings.

While some causes of water damage are immediately apparent, many develop over time and may require a professional inspection to locate. The most common sources of water leaks in a strata scheme often fall into several key categories.

Roofing & Rainwater Systems

These are frequent culprits, especially during heavy rain. Common roofing issues include:

• Deteriorated roof flashing
• Cracked tiles
• Rusted metal sheets
• Failed seals around roof penetrations

Blocked gutters and downpipes are also a primary cause, leading to water overflow that can penetrate walls and ceilings, causing significant damage.

Plumbing & Pipework

A leak can originate from the extensive network of pipes throughout the building. These may include:

• Burst or leaking water pipes located in common property areas, like boundary walls or concrete floor slabs
• Failed appliance hoses, such as those connected to washing machines or dishwashers
• Dripping taps

Within a lot, issues like failed appliance hoses and dripping taps are common sources of water damage that are the lot owner’s responsibility to repair.

Waterproofing Failures

The failure of a waterproof membrane is a significant cause of persistent water ingress, particularly in areas such as:

• Balconies
• Bathrooms
• Podiums where the membrane may have aged or been installed incorrectly

Failed sealant or caulking around windows and sliding door frames can also compromise the building’s waterproof seal, allowing wind-driven rain to enter.

Building Structure & Foundations

Leaks can also come from the core structure of the building itself. These structural issues include:

• Water seeping through cracks in external walls or foundations, leading to dampness and mould
• Defective building work from the original construction, which can be complex to resolve

Your Action Plan for Reporting & Fixing Water Leaks

Formally Reporting Water Ingress to the Strata Committee

Quick action is essential to minimise damage when you first discover a water leak. Take these immediate steps:

• Move furniture and valuables away from the affected area
• Use buckets to catch dripping water
• Turn off the electricity at the circuit board if water is near electrical points, and it’s safe to do so
• Shut off the water supply to your lot using the stopcock if the source is evident and accessible (like a burst laundry hose)

After addressing these immediate concerns, you should formally report the issue to your strata manager or committee. While a phone call is a good first step, I think it’s important to follow up in writing with an email. This creates a formal, dated record that officially notifies the OC of the problem and triggers their legal duty to act.

Your written report should be clear and detailed to convey the urgency and nature of the leak. Include the following information:

Information to Include	Details to Provide
Your Details	Your name, lot number, and contact information.
Date & Time	When you first discovered the water ingress.
Location of the Leak	Be specific, e.g., “the ceiling in the main bedroom, in the corner closest to the balcony.”
Description of Damage	Detail the extent of damage, such as dripping water, ceiling stains, soaked carpets, or mould.
Suspected Source	If you have an idea where the water is coming from (e.g., the roof during rain).
Visual Evidence	Attach clear photos and videos of the leak and resulting damage.
Formal Request	State that you are requesting the OC to investigate and repair the issue under Section 106 of the Strata Schemes Management Act 2015 (NSW).

Navigating the Repair Process & Consequential Damage

Once you’ve formally reported the water ingress, the OC will need to immediately look into the source. This typically involves engaging a qualified professional—such as a plumber, roofer, or specialist leak detection expert—to diagnose the cause accurately. If the investigation confirms the leak originates from a failure in common property, the OC is responsible for arranging and paying for the repair of that source.

A critical and often misunderstood aspect of water damage in a strata scheme is the responsibility for consequential damage. The repair obligations are typically divided as follows:

• The Owners Corporation’s Responsibility:
  • Repairing the source of the leak on common property
  • Repairing damage to other common property elements
  • Fixing the basic structure of your lot, such as raw plasterboard ceiling or structural timbers
• The Lot Owner’s Responsibility:
  • Repairing damage to items within their lot
  • Fixing internal finishes like paint, wallpaper, carpets, and floating floorboards
  • Replacing or repairing personal contents such as furniture and electronics

This division of responsibilities highlights why it’s essential for every lot owner to have their own contents insurance policy to cover these potential losses.

The OC must obtain at least two independent quotes for major repairs to common property valued at more than $30,000. However, this requirement doesn’t apply to emergency repairs where there is a serious risk to health or safety. The strata manager typically coordinates this process, liaising between the strata committee and the chosen contractors to ensure the repair is completed efficiently.

Managing Urgent Repairs & Water Emergencies

Immediate Actions for Water Emergencies

When a water leak escalates into an emergency, such as a burst pipe or significant flooding, immediate action is crucial to protect property and ensure the safety of residents. In these situations, both lot owners and the OC have specific responsibilities and protocols to follow under the Strata Schemes Management Act 2015 (NSW).

You should take care of the damage if you find an urgent water leak. You should immediately take steps to contain the issue, which may include:

• Moving furniture, electronics, and other valuables away from the affected area
• Using buckets and towels to catch dripping water and minimise spreading
• Shutting off the water supply to your lot via the main stopcock if the source is within your property and accessible
• Turning off the electricity at the circuit board if water is near any electrical points, but only if it is safe to do so

Notification Requirements

Once you have taken these initial steps, you should formally notify your strata manager or strata committee in writing, even if you have already called them. An email with photos and videos creates a formal record and triggers the OC’s duty to act.

Emergency Repairs by Lot Owners

In an emergency where the strata manager is unreachable and there is a serious risk to property, a lot owner can arrange urgent repairs to common property and later seek reimbursement from the OC.

To be eligible for a refund, you must be able to demonstrate that:

• The problem was genuinely time-sensitive and posed a risk
• You made reasonable attempts to contact the strata manager or a committee member first
• The work authorised was limited to what was necessary to make the situation safe or prevent further immediate damage

Powers of the Owners Corporation

The OC has special powers to deal with emergencies. It can authorise urgent repairs to common property without needing a committee meeting, especially where there is a threat to health or safety.

Furthermore, obtaining at least two quotes for work valued over $30,000 does not apply to emergency repairs, such as those for burst pipes or severe storm damage. To fund these unexpected costs, the OC can issue a levy to owners with only 14 days’ notice to pay.

Conclusion

Effectively managing water ingress in NSW strata properties hinges on understanding the legal duties of the OC and lot owners as defined by the Strata Schemes Management Act 2015 (NSW). From proactive maintenance and identifying leak sources to formally reporting issues and managing urgent repairs, a clear action plan is essential for protecting your property.

For trusted expertise in navigating complex water ingress disputes or clarifying your rights under strata law, contact the specialised team at PBL Law Group today. Our experts will help you resolve your matter effectively and protect your property.

Frequently Asked Questions (FAQ)