June 19, 2025

Understanding Building Defects in Strata Properties – NSW

Building defects remain one of the most challenging and costly concerns faced by strata communities. If left unresolved, these issues can pose serious safety risks, reduce property values, and lead to expensive repair projects. Regardless of whether a building is brand new or well-established, recognising and addressing defects promptly is a vital part of responsible strata management.

What Is Considered a Building Defect?

A building defect refers to any fault or issue in a building element or material that prevents it from performing as intended. Common examples include problems with waterproofing, structural stability, fire safety systems, or the finishes applied to common property. Defects can be the result of poor construction, substandard materials, or design faults — and in new developments, they are typically covered under statutory warranties for a limited time.

Frequent Building Defects in Strata Communities

Certain defects tend to appear regularly in strata properties. These include:

  • Waterproofing problems in podium areas, basements, and balconies
  • Cracked or deteriorating concrete, particularly in car parks and building facades
  • Faulty fire safety systems, such as defective alarms, fire doors or sprinkler setups
  • Movement in the building, including settlement issues or cracking
  • Electrical hazards and drainage problems
  • Premature rusting or corrosion of metal components, especially in coastal or humid environments

Regular inspections and staying on top of maintenance works are essential for spotting these issues early and avoiding high rectification costs.

Addressing Building Defects in New South Wales

In New South Wales, the management of building defects is regulated by the Home Building Act 1989. New strata developments are covered by a 6-year statutory warranty for major defects and a 2-year period for minor defects.

Owners Corporations hold a legal responsibility to repair and maintain common property. When a defect is suspected, the Committee should swiftly organise professional inspections and liaise with the builder or developer. In cases where disputes cannot be resolved, matters can be escalated to the NSW Civil and Administrative Tribunal (NCAT) — provided claims are made within the relevant warranty period.

Proactive Steps to Prevent Building Defects

While some building issues are unavoidable, many can be minimised or detected early through proactive management. Good practices include:

  • Conducting regular building condition reports
  • Responding promptly to maintenance recommendations
  • Maintaining clear, organised records of inspections, repairs, and communications
  • Educating Committee members on warranty timeframes and defect processes
  • Only using properly qualified, reputable contractors for any works
  • It’s best for the Committee to engage with the builder where possible in terms of any known common property defects to try and resolve these together

Staying alert to building defects and acting quickly is crucial for preserving property value, safety, and community wellbeing. If you’re uncertain about your building’s current condition, it’s worthwhile arranging a professional building report and consulting your Community Manager at SSKB for guidance.

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