Water stains on the ceiling, mould creeping up the walls, burst pipes, and more—these are just some of the stressful and costly issues related to water damage that strata property owners may face.
So, when damage occurs, who foots the bill? Is it your responsibility, or does it fall on the owners corporation (OC)?
According to the Owners Corporation Act 2006, Section 46, 47, and 47A, liability for repair and maintenance in a strata property is determined by factors such as the location and source of the damage.
In this article, we’ll explore these factors and share tips to help you manage and prevent similar issues in the future. Let’s dive in!
Key Takeaways:
- Responsibility for water damage in strata properties depends on where the damage originates.
- Water damage can be caused by weather events, faulty plumbing, poor renovations, or defective appliances.
- When water damage occurs, documenting the issue, notifying your OC manager, and reviewing responsibilities early can help resolve problems and avoid disputes.
Understanding strata property and water damage 
First of all, it’s important to note that the OC and its members have their share of obligations regarding these properties. The strata responsibility for water damage is scoped within the legal boundaries as found in the plan of subdivision.
Lot owners are responsible for maintaining their private lots, while the OC is tasked with managing the common property. But when it comes to water damage, the lines can sometimes blur, as the source of the problem may affect both private and shared areas.
But where do water damages come from?
These can be caused by:
- Changes in seasons, weather, and natural calamity
- Faulty plumbing or HVAC system
- Interior, exterior, and underground structure damage
- Flawed renovations
- Defective appliances
Some of these can affect large areas of the building, making it difficult to pinpoint the exact origin of the damage. If this happens, don’t worry! We’ll guide you through what to do next.
Determining responsibility: strata vs. unit owner
The good news is that there are ways to determine who is liable in these situations. Reviewing the maintenance plan, strata responsibility for water damage, and the plan of subdivision can help clarify whose responsibility it is.
Below is an initial basis for determining who gets the liability.
When is the owners corporation responsible for water damage in Victoria?
Sections 46 and 47 of the Owners Corporation Act 2006 specify that the strata responsibility for water lies with the Owners Corporation (OC), as they are required to maintain and repair the common property and related services. This means that if water damage occurs within a shared area, the OC is responsible for arranging necessary repairs and paying the cost.
The scope of common property varies depending on the strata scheme. However, this generally includes services or infrastructures that serve two or more lots, such as:
- Shared systems (such as plumbing, electrical)
- Pathways
- Building’s exterior
- Foyers and entryways
- Lifts and stairwells
- Roof and balconies
- Gardens and swimming pools
- Driveways and hallways
- Other amenities, utilities, and fixtures related to it
When is a lot owner responsible for water damage in a Victorian apartment?
On the contrary, lot owners are liable if the water damage that originates within their private lot, such as in cases of:
- Leaks in the water fixtures
- Mildew caused by internal activities such as cooking
- Flawed renovations by the unit owner
What About External Damage to the Unit?
Section 129 of the OC Act 2006 states that, as a lot owner, you are responsible for maintaining the exterior of your lot if it affects its outward appearance or the use and enjoyment of other lots. Additionally, you must maintain any services that exclusively serve your lot.
To prevent liability and further damage to your property, read our article on the top 10 causes of building leaks.
What to do if water damage occurs in a strata property
Here are the things you can do to address the water damage on the strata property:
- Take pictures and notes which show the details of the damage.
- Report the issue to the strata Committee or manager to identify whose boundaries or area the water damage came from and who is responsible for the repair. For complex situations like leaks beneath the ground, ask for an expert’s help.
- Review your legal rights, insurance coverage, and the appropriate strata responsibility for water damage.
Aside from these steps, having the right strata management in place can make a real difference.
The right manager can support Committees through these processes and help address issues like water damage early.
If that level of support isn’t in place, some Committees choose to change strata managers. We help schemes manage the transition and understand their options.
You can speak with one of our strata management consultants here.
Following this simple guide can make the resolution process easier. Also, keep communicating with the other parties to avoid confusion.
Legal recourse and dispute resolution
In some cases, disputes, like claiming strata responsibility for water damage, may not be easily resolved. The first step is to discuss the issue directly with the other party.
If this approach does not lead to a resolution, you should report the matter to the OC, which can take steps to reach an amicable resolution. If mediation is unsuccessful, the dispute may be escalated to the Tribunal for legal proceedings.
Need More Help?
Some owners corporation managers may overlook building maintenance issues. If you’re facing this problem and want a more proactive manager, you’re in the right place.
At Strata Management Consultants, we carefully select top-performing OC managers and have a proven record of helping OC Committees transition to better management. For assistance, contact our expert consultants at 03 9007 2618.
