ARTICLE
15 August 2022

Leaks in an apartment building – Who is responsible?

CG
Coleman Greig Lawyers

Contributor

Coleman Greig is a leading law firm in Sydney, focusing on empowering clients through legal services and value-adding initiatives. With over 95 years of experience, we cater to a wide range of clients from individuals to multinational enterprises. Our flexible work environment and commitment to innovation ensure the best service for our clients. We integrate with the community and strive for excellence in all aspects of our work.
Moisture can quickly spread within walls and floors of a building, causing permanent damage and feeding mould.
Australia Real Estate and Construction
To print this article, all you need is to be registered or login on Mondaq.com.

Leaks in an apartment building can cause property damage, toxic mould and make an apartment unsafe to live in. Leaks don't always result in visible running water. Signs of water damage include blistering and bubbling paint, rotting wood and mould.

It's vital that you act quickly to fix leaks as moisture can invisibly spread within the walls and floors of a building causing permanent damage and feeding hidden mould.

If you live in a strata plan, it will often be the responsibility of the owners corporation to fix leaks. Section 106 of the Strata Schemes Management Act 2015 (NSW) (the Act) requires an owners corporation to maintain and repair the common property in its building. An apartment owner may also be entitled to be repaid for any damage to the inside of their unit or to household items as a result of the leak. In the case of Seiwa v Owners Strata Plan 35042 [2006] the NSW Supreme Court ordered the owners corporation to pay the apartment owner $150,000 in damages for loss of use of part of its apartment.

To find out who is responsible to fix leaks:

  1. Find out what is causing the leak. Is it from a roof, window, pipe or through a wall?
  2. Find out if the source of the leak is from lot property (part of the apartment) or common property (owned by the owners corporation). To be certain you may need to read the strata plan, but often the space inside the unit, including internal walls, is lot property and the external walls, roof, windows and sliding doors are common property.

If the leak is coming from common property it is likely due to a failure by the owners corporation to maintain and repair that part of the building. If so, it is the owners corporation's responsibility to fix the leak and it may have to repay the apartment owner for any loss the owner has suffered because of the leak.

It's important to act quickly when you have property damage resulting from a leak as section 106(6) of the Act prevents an apartment owner from claiming reimbursement for loss 2 years after the date that they first become aware of that loss.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More