Can an Owner Be Asked to Pay for Repairs to Common Property?

A Detailed Guide for NSW Self-Managed Strata Schemes

One of the most common and sensitive disputes in self-managed strata is whether an individual owner can be asked to pay for repairs to common property.

This question usually arises after:

• water leaks
• damage to ceilings or walls
• balcony waterproofing failures
• roof leaks
• plumbing failures
• unauthorised renovations
• accidental damage

For committees, getting this wrong can lead to illegal cost shifting, insurance disputes, tribunal claims, and levy conflicts.

This guide explains when an owner can be charged, when they absolutely cannot, and how to handle disputes correctly under NSW strata legislation.

1. The General Rule: Common Property Is the Owners Corporation’s Responsibility

Under NSW strata legislation:

The Owners Corporation is responsible for maintaining and repairing common property — not individual owners.

Common property typically includes:

• roofs and external walls
• slab structures
• pipes and drains serving more than one lot
• ceilings between levels
• balcony slabs and balustrades
• fire safety systems
• windows (in most cases)

This means the cost of repairing common property is normally paid from the Admin Fund or raised via levies — not charged to one owner.

2. When CAN an Owner Be Asked to Pay?

There are only a few strict legal situations where an owner can be required to pay for common property repairs.

1. If the Owner Caused the Damage

If damage is directly caused by:

• unauthorised renovations
• negligence
• misuse of fixtures
• illegal plumbing works
• waterproofing failures caused by owner-installed works

Then the Owners Corporation may recover the cost from that owner.

However, this requires:

• evidence of causation
• clear link between the owner’s works and the damage
• proper approval records
• often insurance investigation or expert reports

It cannot be assumed.

2. If a By-Law Makes the Owner Responsible

If a registered special by-law exists that transfers:

• maintenance responsibility
• repair liability
• ongoing renewal costs

to a specific owner (common with air conditioners, balconies, flooring, plumbing alterations), then:

• the owner can legally be required to pay
• but only for the items listed in the registered by-law

If no by-law exists, the cost cannot be shifted.

3. If the Owner Refused Access & Worsened the Damage

If an owner:

• refuses access for inspections
• ignores leak warnings
• delays repairs inside their lot
• blocks emergency works

and this directly escalates the damage, the Owners Corporation may seek recovery for the additional damage caused by the delay.

This is rare and usually requires:

• documented access requests
• expert evidence
• tribunal involvement

3. When an Owner CANNOT Be Asked to Pay

These are the most common illegal or incorrect cost-shifting attempts:

• General wear and tear to common property
• Age-related roof failure
• Old waterproofing membranes failing
• Original pipes and drains leaking
• Balcony slab cracking
• Structural defects
• Fire system upgrades
• Insurance excess when the claim is not fault-based

Even if damage appears to originate from inside a lot, if the failed component is common property, the scheme pays.

4. Insurance vs Owner Responsibility

Insurance often confuses committees.

Key rules:

• Insurance covers sudden and accidental damage, not maintenance
• Insurance never replaces the Owners Corporation’s maintenance duty
• If the owner caused the damage, the insurer may recover the payout from the owner — not the scheme directly
• Insurance does not automatically make the owner liable

The cause of failure matters far more than where the damage appears.

5. What the Committee Must Do Before Charging an Owner

Before attempting to recover any costs from an owner, the committee should:

• confirm if the affected item is common property
• check for any registered by-laws
• assess if owner negligence is provable
• obtain expert or insurer reports
• issue proper written correspondence
• avoid informal requests for payment

Committees cannot simply vote to charge an owner without legal authority.

That exposes the scheme to:

• NCAT disputes
• costs orders
• compliance breaches
• directors’ liability concerns

6. What Happens if the Committee Charges an Owner Incorrectly?

If an owner is charged without legal authority, they can:

• apply to NCAT
• demand reimbursement
• seek orders to stop debt recovery
• challenge levy distributions
• expose committee members to liability

Many schemes are forced to reverse charges months later, creating:

• accounting issues
• refund disputes
• auditor flags
• conflict escalation

Final Thoughts

An owner can only be charged for common property repairs in very specific legal situations — and most real-world attempts to do so are incorrect.

If:

• the damage relates to common property
• no by-law exists
• no negligence is proven

then the Owners Corporation must pay.

Handled improperly, these disputes often spiral into tribunal matters, levy disputes, and insurance conflicts.

Clear documentation, correct classification, and proper legal process protect both the scheme and the committee.

Strata On Demand Can Help

Strata On Demand provides professional support for self-managed schemes across NSW, offering 30+ services designed to simplify your workload, reduce risk, and deliver professional documentation without the cost of a full-service strata manager.

No contracts. No full-service strata manager fees.

Pay only for the services you need, when you need them.

For common property repair disputes, these are the five most relevant services:

1. By-Law Drafting & Review

Ensures responsibility for altered common property is legally transferred where required.

2. Insurance Claim Lodging

Determines whether damage is maintenance-based or insurable and manages insurer communications.

3. Compliance Health Check

Identifies high-risk maintenance and liability exposure before disputes arise.

4. Drafting Notices & Letters

Issues legally structured correspondence to owners regarding responsibility and access.

5. Tribunal Preparation (NCAT)

Organises evidence packs, timelines, and documentation for recovery disputes.

If your scheme is currently dealing with a common property repair dispute, owner responsibility conflict, or insurance disagreement, contact Strata On Demand now for fast, compliant support.