Water leaks are one of the most common and damaging issues faced by strata properties, and understanding who is responsible for managing and fixing them is crucial for owners, committees, and managers. While the specific responsibilities can vary depending on the jurisdiction, there are some general guidelines for how water leaks should be handled in Queensland, New South Wales (NSW), and Victoria. This article provides an overview of the management of water leaks and damage in strata properties across these states. 

The Impact of Water Leaks in Strata Properties 

Water leaks can lead to significant damage to both common property and individual lots within a strata scheme. From ceiling leaks to burst pipes, water damage can result in costly repairs and insurance claims. Beyond the financial costs, water damage can also disrupt the daily lives of residents and lead to health concerns due to mould and mildew growth. 

Understanding who is responsible for these repairs and damages can help avoid disputes and ensure that issues are addressed promptly and effectively. 

1. Queensland: Body Corporate and Lot Owner Responsibilities 

In Queensland, the Body Corporate (known as the Owners Corporation in other states) is responsible for managing the common property, which includes areas such as shared walls, roofs, and pipes that are not contained within individual lots. According to Queensland’s Body Corporate and Community Management Act, the Body Corporate is generally responsible for repairing leaks that occur in these common areas. 

However, if the water leak originates from within a lot, the responsibility typically falls on the individual lot owner. For example, if a leak comes from a malfunctioning tap or faulty plumbing inside a unit, the lot owner must arrange for repairs. 

Disputes may arise when it is unclear whether the leak originates from common property or an individual lot. In such cases, the Body Corporate may need to work with the affected lot owners and potentially their insurers to determine the source of the leak. 

2. New South Wales: Owners Corporation and Lot Owner Liabilities 

Similar to Queensland, in New South Wales, the Owners Corporation is responsible for the repair and maintenance of common property, which includes pipes, roofs, and shared walls. The Strata Schemes Management Act governs these responsibilities. In cases where the water leak affects the common property, such as leaking pipes or roofing issues, the Owners Corporation is responsible for rectifying the damage. 

For issues that originate inside individual lots, such as leaking taps or faulty internal plumbing, the lot owner is liable for the repairs. If water damage caused by internal leaks affects common property, the Owners Corporation may be involved in the repair process. 

In NSW, there may also be issues related to defective building works, where the building’s design or construction is found to be at fault. If a water leak is the result of defective building work, the responsible party may be the builder or developer, and the Owners Corporation could pursue compensation or insurance claims. 

3. Victoria: Owners Corporation and Lot Owner Duties 

In Victoria, the rules for water leak management are largely similar to those in Queensland and NSW. The Owners Corporation Act 2006 outlines that the Owners Corporation is responsible for the maintenance and repair of common property, including shared plumbing and other infrastructure. The Owners Corporation must act quickly to repair any water damage to common property, as delays can lead to further damage and possible disputes. 

For leaks originating within individual lots, such as plumbing issues inside a unit, the lot owner is responsible for the repairs. If these internal leaks affect common property or other lots, the Owners Corporation may become involved, and the cost of repairs may be passed on to the lot owner who is responsible for the damage. 

Managing Water Leaks and Damage: Key Steps for Strata Communities 

Regardless of the state, effective management of water leaks in strata properties requires proactive communication and clear procedures. Here are some key steps to help manage water leaks: 

1. Prompt Identification and Reporting 

Residents and owners should report water leaks to their strata schemes managing agent as soon as they are identified to avoid further damage. Strata managers should establish a clear reporting system to ensure that issues are addressed quickly and efficiently. 

2. Investigating the Source of the Leak 

Accurately identifying the source of a leak is essential, and in some cases, a professional inspection may be required—particularly when it is unclear whether the leak originates from common property or a lot. A strata scheme’s Community Manager or Owners Corporation Manager can arrange an inspection on behalf of Lot Owners. However, as this is a chargeable service, authorisation is required to allocate the cost to the Body Corporate, with the approval recorded in Body Corporate records. If an owner does not want the Body Corporate to bear this cost, they have the option to organise the inspection independently. 

3. Determining Responsibility 

Once the source of the leak is identified, it’s crucial to establish who is responsible for the repair. If the leak is from common property, the Owners Corporation or Body Corporate will take on the repairs. If it is from an individual lot, the owner is responsible for resolving the issue. 

4. Insurance and Claims 

Water damage often requires insurance claims to cover the costs of repairs. Strata properties typically have insurance that covers common property, while lot owners are responsible for their own content’s insurance. In cases where there are disputes about liability, insurance companies may get involved to determine fault and coverage. If the issue involves common property and the strata property’s insurance has been arranged through SSKB, the SSKB strata manager can handle the claim on behalf of the property. 

5. Repairing the Damage 

Once liability is established, the necessary repairs should be carried out promptly to prevent further damage. In Queensland, NSW, and Victoria, this will involve coordinating with professional plumbers, builders, and possibly the insurance companies to ensure repairs are done correctly. Your strata managing agent can assist in organising these services for common property or individual Lot Owners. This may incur an additional fee and will require pre-authorisation to charge the cost to the Body Corporate or Owners Corporation. The authorisation will be recorded in the Body Corporate/Owners Corporation records. 

6. Preventive Measures 

Prevention is key in managing water leaks. Regular maintenance checks of plumbing systems, roofs, and waterproofing measures can help reduce the likelihood of leaks. Strata managers and owners should be proactive in identifying potential risks and addressing them before they escalate. 

Water leaks in strata properties are a common issue that requires careful management to ensure that responsibility is clearly defined and that repairs are carried out efficiently. Understanding the laws and responsibilities in Queensland, New South Wales, and Victoria can help prevent disputes and ensure that all parties are aware of their obligations. With prompt action, proper communication, and regular maintenance, the risk of significant water damage in strata properties can be minimised. 

By working together—lot owners, the Owners Corporation or Body Corporate, and strata managers—water leaks can be swiftly managed, ensuring the safety, comfort, and financial well-being of all strata residents.