If you live, manage or own a strata-titled property in Sydney or across New South Wales (NSW), it is important to understand your strata obligations.
When it comes to building repair and maintenance, these obligations can cause one to become a bit confused.
That’s why we have put together this handy guide to help you understand the main aspects of strata obligations and who is responsible for what. Please consider this general advice only; if you would like specific tailored advice for your circumstances, reach out to the BiM Remedial team today.
NSW Legal Framework: Strata Schemes Management Act 2015
The legal framework governing strata responsibilities in Sydney is primarily detailed in the Strata Schemes Management Act 2015. This piece of legislation establishes the rights as well as the responsibilities of owners, tenants, and strata committees regarding repairs and maintenance.
In the event that there is a dispute regarding who is responsible for what, the Act also outlines procedures for finding a resolution.
Understanding Responsibility for Building Repairs and Maintenance
Under NSW law, there are different responsibilities that apply in a strata scheme. These responsibilities tend to be divided into two main categories. The first is Common Property Repairs and the second is Individual Lot Repairs.
Common Property Repairs
Common Property Repairs refers to the shared areas within the strata scheme. Examples could include gardens, foyers, hallways, elevators and building exteriors. Responsibility for repair and maintenance of these areas rests with the property owners. It is their strict duty, according to the Strata Schemes Management Act 2015, to ensure that the common property is suitably maintained and anything requiring repairing is fixed.
It is important to note that this includes structural repairs and also covers all repair work whether reported, noticed or not.
Individual Lot Repairs
In the context of Individual Lot Repairs, i.e., the private units that make up the building, the individual owners are responsible. This encompasses everything within those four walls: From fixtures and fittings, to ceilings, plumbing and electrical systems. If it is an issue that is contained within a private and individual residence, the responsibility rests with the private and individual owner.
Understanding How to Organise Repairs
If you are a resident of a unit within a residential building or complex, it is essential that all issues noticed within common property areas are brought to the attention of a strata manager or representative as soon as possible.
The manager or representative will then be required to coordinate with the necessary parties and contractors to facilitate the necessary repairs. In most cases, where the repair is minor, this can be done quite quickly and easily. Major repairs may require approval from the owners corporation.
Repair work required within an individual, private unit should be reported promptly to the owner or property manager.
The Responsibility for Preventative Maintenance
Preventative maintenance is the best way to ensure the upkeep of common areas in a residential building. Regular inspections and scheduled maintenance work will help avoid costly and disruptive repairs further down the line.
It is mandatory for owners corporations in NSW to establish a capital works plan which will enable them to forecast and plan for major repair work, and allocate funds accordingly. In many cases, this plan is funded by strata levies which are collected from all unit owners.
Funding Repairs and Maintenance
The strata levies are contributions made by unit owners, based on their unit entitlements. These levies fill the pot of funding which will be used for required repairs. Strata levies can be used for not just unexpected repair costs but also fund routine maintenance as deemed necessary.
It is important that unit owners are communicated with regarding all levies required, with written notice of due levies provided at least 30 days prior to payment being required. For emergency repairs, this can be reduced to 14 days’ notice.
Penalties for Failure to Comply
In NSW, there are penalties for strata owners not maintaining common property. These penalties include both financial and legal repercussions. Excuses such as ignorance, lack of awareness or budget constraints are not considered adequate for failure to comply with the Act.
In the event that financial penalties are incurred, there is a maximum penalty of $220,000 and a daily penalty of up to $22,000 for each day of non-compliance.
Owners of individual units or lots can claim damages from the owners corporation if reasonably foreseeable loss (such as from rent or repair costs) was not prevented due to regular maintenance.
Additionally, if there was a case of maintenance negligence causing an accident or injuries, owners corporations could face significant legal claims and serious liability issues.
BiM Remedial provides comprehensive property maintenance services
While the responsibilities of maintenance and repair rest on the shoulders of the owners corporation, if you are one of these responsible parties, don’t worry: You are not alone!
The BiM Remedial Sydney team is thoroughly experienced and made up of a group of highly skilled remedial builders. Our team of contractors have a reputation for delivering end-to-end and tailored solutions to ensure that all buildings we inspect and maintain offer the utmost in safety and comfort.
If you would like to find out more about the different services BiM Remedial provides, or would like to understand your strata obligations for building repair and maintenance in more detail, make sure to contact our team today.
