It is well known that an owners corporation is responsible for repairing and maintaining its common property in strata lots. If they fail to do so, a lot owner has the right to bring a claim for damages arising from any reasonably foreseeable loss that occurs as a result (such as loss in rental income).
It is important that lot owners are aware of the 2 year limitation period within which owners can take action in these cases. Here’s what you need to know:
What does the legislation say?
Section 106 of the Strata Schemes Management Act 2015 (‘the Act’) provides that an owner of a lot in a strata scheme may recover from the owners corporation, as damages for a failure to maintain and repair common property, any reasonably foreseeable loss suffered by the owner as a result.
Often such claims manifest as water ingress through a common property area or external wall into a lot, in which case the reasonably foreseeable loss would include water damage to furniture and fittings within the lot and perhaps an inability to inhabit the lot.
Delays by owners corporations in repairing common property defects should not be ignored due to the strict 2 year limitation period commencing from the date that an owner first becomes aware of the loss/damage.
The question of when a lot owner first ‘becomes aware of the loss’ can be quite complex and requires an investigation of the background of the matter.
Legal advice should be sought promptly once an issue arises to assess the viability of a claim and determine the appropriate course of action within the prescribed timeframe.
If you or someone you know has been affected by damages relating to strata common property, you can contact our team by phone – (02) 9525 8688 – or by email – wmd@wmdlaw.com.au.
