Whether you are a property owner or manager, understanding the division of responsibilities between the private lot and the owners corporation is essential. Often, confusion can arise about who is responsible for repairs and maintenance, but knowing the basics can save time and effort.
Key Takeaways:
- The body corporate is generally responsible for maintaining and repairing common property.
- Common property often includes external walls, roofing, foundations, stairwells, foyers, shared plumbing, and electrical systems.
- Lot owners are usually responsible for repairs inside their own lots, such as carpets, fixtures, and internal water damage.
- Determining who’s responsible depends on the registered plan of subdivision and the nature of the property.
- It’s important for both committees and lot owners to understand where the line is drawn to avoid confusion or disputes.
What does the Owners Corporations Act 2006 say about repair obligations?
The Owners Corporation Act 2006 provides clear guidance on these obligations. If in doubt, it’s always helpful to contact your Owners Corporation Manager, who holds records of the Owners Corporation (OC) and is familiar with the Plan of Subdivision and building details.
To help you better understand these distinctions, here’s an overview of the key responsibilities for both parties.
Owners corporation responsibilities:
- Maintaining and repairing common property, including gardens, hallways, and shared facilities.
- Upkeeping essential services like plumbing, electrical systems, and fire safety equipment that benefit multiple lots.
- Managing shared chattels, fixtures, and fittings, such as lighting or communal furniture.
Lot owner responsibilities:
- Repairing and maintaining the interior and exterior of their private lots, except where it impacts common property or other lots.
- Ensuring individual property modifications comply with OC rules and regulations.
Confusion over these responsibilities can lead to disputes or delays in addressing maintenance issues, but with the right knowledge, you can avoid these challenges.
How is responsibility for repairs divided between common property and private lots in Victoria?
Common property refers to areas shared by all lot owners, such as driveways, stairwells, foyers, shared gardens, and recreational facilities. These spaces are typically outlined in the Plan of Subdivision, which forms part of the Owners Corporation’s records.
The individual unit encompasses all parts of the property that are not classified as common property. This typically includes the interior of the lot, such as walls, flooring, fixtures, and appliances, which the lot owner is responsible for maintaining and repairing.
By understanding these responsibilities, property owners and managers can better navigate maintenance and repair needs, ensuring compliance with the Owners Corporation Act 2006.
In principle, the concept is very straightforward:
- The Owners Corporation is responsible for repairing and maintaining common property and services; and
- The Lot Owner is responsible for repairing and maintaining anything else that isn’t common property or a common service.
However in the course of a building’s life cycle the conversations and discussions about who repairs and pays for what can become more complex. Owners should go through the following to help understand what they should and shouldn’t have to pay for:
- The Plan of Subdivision, which can be obtained from Landata Victoria or by requesting it from your Owners Corporation Manager;
- A copy of any special resolutions that have been passed by the Owners Corporation – which can be requested from your Owners Corporation Manager; and
- Understanding whether or not the benefits principle applies in the given situation, which can be also a discussion to be had with your Committee and your Owners Corporation Manager.
- Consider whether there might be another party that might be responsible and liable to pay for the repairs i.e. the builder, any subcontractors, manufacturer warranties, builders’ warranty insurance, Cladding Safety Victoria, etc.;
- Review whether there are any applicable VCAT or other rulings that might impact the given situation.
What repairs and maintenance are typically covered by the owners corporation?
Repairs and maintenance tasks that typically fall under the responsibility of the body corporate / owners corporation include:
- Repair/replacement of common area lobbies, hallways, stairwells, etc;
- Repair/replacement of structural elements such as the foundation, external walls, the roof, etc;
- Repair/replacement of gutters and downpipes;
- Repair/replacement of the exterior of the building including the façade, doors, windows, and common external areas;
- Repair/replacement of common services such as plumbing systems, electrical systems, common sewer pipes, common utility systems, heating, ventilation, and air conditioning (HVAC) systems serving common areas, intercoms, etc.;
- Service, repair, and replacement of lifts and elevators;
- Service, repair, and replacement of shared use garage doors and gates;
- Repair and maintenance of common facilities and amenities such as gardens, swimming pools, tennis courts, BBQ areas, saunas, benches, lounges, etc.
Section 46 of the Owners Corporations Act 2006 stipulates that the Owners Corporation must repair and maintain common property. Buildings often achieve this legal requirement through discussions at the AGMs, the work of the volunteer Committee, and sound input from a good/proactive owners corporation manager.
Timely and property repair of common property not only maintains the property value of buildings but also helps owners to minimise safety and legal risks.
What repairs are lot owners responsible for in a Victorian owners corporation?
Individual property owners are responsible for repairs and maintenance tasks associated with any private property within their lot, these include:
- Internal walls and partitions;
- Flooring coverings within the lot;
- Painting and decorating within the lot;
- Fixtures and fittings within the lot;
- Plumbing and electrical systems within the lot;
- Air conditioning and heating units servicing the lot
- Appliances and electronics within the lot; and
- Personal belongings, items, and property within the lot.
It is also worth noting that:
- Property owners also cannot neglect maintenance over the long run as this may have other implications and costs i.e. it affects another lot owner or common property or another party;
- Property owners cannot repair/maintain common property or adversely impact the outward appearance of the building.
Sections 48 and 129 of the Owners Corporations Act 2006 stipulate:
One of our OC managers relayed the story of a lot owner deliberately painting the exterior of his apartment – against the Owners Corporation’s advice. The lot owner was then subsequently ordered by VCAT to reinstate the exterior appearance to what it was previously – at his own (significant) expense.
What happens if there is a dispute over repair responsibilities in an owners corporation?
Effective communication and record-keeping will greatly reduce disputes or misunderstandings within the Owners Corporation. Both of these functions, whilst assisted by a proactive Committee, are ultimately the purview and responsibility of the Owners Corporation Manager.
It is also important for all owners and the Owners Corporation to understand the responsibility for repairs, the urgency of repairs, proper contribution to repair funds, the quality of repairs, and the enforcement of necessary repairs to be undertaken.
When disputes do arise, it is often beneficial for the Committee and Owners Corporation Manager to try their best to meditate on the matter before it gets to VCAT.
Is poor repair management a sign your owners corporation needs better oversight?
Effective management of an Owners Corporation is achieved by having a professional owners corporation manager providing you with clarify and clear communication.
If your Owners Corporation Management Company isn’t providing your building with professional guidance when it comes to repairs and maintenance then they’re not doing their job.
Speak to us about reviewing the management of your building in consultation with your Committee. We work with professional OC management companies who get the job done – contact us at 03 9007 2618.
