owners corporation

An apartment in our building had a major leak, causing significant damage to other lots. An insurance claim was lodged to cover the damage. The owners corporation (OC) now wants individual owners to arrange a plumber inspection of their flexi hoses, or they will arrange the inspection and complete any required work.

Although this involves entering owner’s lots, the action significantly mitigates the risk of a major leak happening again. Preventative steps prove to our insurance underwriters that appropriate maintenance is being undertaken on individual lots and will hopefully reduce premium increases. Is the OC permitted to request this maintenance?

An owners corporation may undertake an investigation of lot property if there are building wide issues if it wants to be sure that common property is not defective.

An owners corporation has a statutory duty to repair and maintain common property. It has no obligation to repair and maintain private lot property. Notwithstanding, the Owners Corporations Act gives an OC the power to issue notices to lot owners in circumstances where private lot property is not maintained and the external appearance or enjoyment of common property or other lots is affected.

An owners corporation may undertake investigations in respect to private lot property if there are building wide issues if it wants to be sure that common property is not defective.

An owners corporation can only mandate a private lot owner do something by way of repair or maintenance to private lot property in accordance with Section 48 of the Owners Corporations Act 2006.

Costs of works or investigations undertaken by an owners corporation might be charged according to lot liability or otherwise on the benefit principle if one of the relevant sections of the Act applies (for example, Section 49 or 24).

For advice or assistance, please contact owners corporations lawyer Phillip Leaman.