1. Owners Corporation (OC)
Under the Strata Schemes Management Act 2015 (NSW) (SSMA), the Owners Corporation has a strict statutory duty to properly maintain and keep in a state of good and serviceable repair the common property (Section 106). This obligation extends to rectifying defects, including original building defects, regardless of when they arise.
In Class 2 buildings (typically multi-residential apartments under the NCC/ABCB classification system), this duty is particularly significant. Once the Owners Corporation becomes aware of a defect affecting common property, it cannot disregard it. The obligation is proactive and ongoing, aimed at preserving the building’s condition, protecting asset value, and ensuring the safety of occupants and visitors.
While legislation varies slightly across Australian jurisdictions (NSW, VIC, QLD, ACT, SA, WA, NT, and TAS), the underlying principle remains consistent: responsibility for defects generally rests with the Owners Corporation where common property is involved, and in some cases, may extend to issues within lots that impact other lots or common property.
2. Limited Circumstances for Deferring Repairs
An Owners Corporation may defer repairs in limited and specific circumstances, including:
a. Pursuit of Legal Action: Where the OC is actively pursuing a claim against a builder, developer, or other party, provided the delay does not compromise safety or unreasonably affect access or use of a lot.
b. Special Resolution (Section 106(3)): Where a special resolution determines that it is inappropriate to carry out certain repairs or maintenance. This is typically interpreted narrowly and must not compromise safety or result in ongoing deterioration.
c. Exclusive Use or Special Privilege By-laws: Where a registered by-law transfers maintenance and repair responsibility for specific areas of common property to an individual lot owner.
Failure by the Owners Corporation to meet its obligations under Section 106 may expose it to claims for damages by affected lot owners. This includes reasonably foreseeable losses such as loss of rent. Proceedings must generally be commenced within 2 years from when the loss becomes apparent (Section 106(5)).
3. Design and Building Practitioners Act 2020 (NSW)
The Design and Building Practitioners Act 2020 (NSW) (DBP Act) significantly strengthens protections for owners by introducing a statutory duty of care (Section 37). This duty applies to those carrying out “construction work,” including builders, designers, engineers, and certain manufacturers.
The duty requires these parties to exercise reasonable care to avoid economic loss caused by defects and applies retrospectively for up to 10 years. This represents a substantial shift from previous legal limitations, where establishing such a duty often depended on contractual relationships. The DBP Act now enables Owners Corporations to pursue claims more effectively, even in the absence of direct contractual privity.
4. Role of Strata and Strata Managers
The SSMA establishes the framework for how responsibilities are shared between the Owners Corporation, the Strata Committee, and individual lot owners.
A strata managing agent acts on behalf of the Owners Corporation under a formal management agreement. While the OC retains ultimate legal responsibility, the strata manager plays a critical administrative and advisory role.
Under the SSMA, strata managers are responsible for functions delegated by the OC, which commonly include:
- Financial management and trust accounting
- Record keeping (typically up to 7 years)
- Administration of meetings and resolutions
- Compliance with disclosure and governance requirements
In the context of Class 2 buildings, the DBP Act has increased the importance of compliance oversight. While strata managers are not “duty holders” under Section 37, they often assist the OC by:
- Coordinating with registered design and building practitioners
- Facilitating access to compliance documentation
- Supporting defect identification and record tracking
- Advising on regulatory obligations and risk exposure
5. How Baleh Consulting Assists Owners Corporations and Strata Managers
Baleh Consulting bridges the gap between statutory obligations and practical delivery.
Baleh Consulting specialise in diagnosing complex building defects and translating them into clear, compliant, and financially manageable remedial strategies Australia-wide. Our approach focuses on:
- Prioritising defects based on risk, safety, and statutory exposure, categorised as “Severe Defects”, “Could lead to Severe Defects”, or “Monitor”.
- Developing staged remediation programs to mitigate financial strain, including reducing the impact of special levies
- Delivering compliant and detailed design solutions aligned with the DBP Act 2020 and NCC 2022
- Providing independent oversight to ensure workmanship and system integrity
- Assist the OC in the tendering process, contract administration, and inspection of hold points throughout the duration of the work.
- Manage the Defect Liability Period.
By combining technical rigour with practical implementation, we assist Owners Corporations in protecting both the structural integrity of their assets and the long-term financial interests of the strata community.
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6. Disclaimer:
This information is general in nature and does not constitute legal or professional advice. Readers should refer to the relevant legislation and verify all information through official sources. Baleh Consulting provides specialist waterproofing and remedial consulting services and recommends obtaining project-specific advice for individual circumstances.
Written By Hacène Baleh on 17/04/2026
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