Section 106 Strata Claims
What Lot Owners Should Consider
Section 106 of the Strata Schemes Management Act 2015 (NSW) imposes a duty on an owners corporation to properly maintain and keep common property in a state of good and serviceable repair, including renewing or replacing fixtures and fittings when necessary. For a lot owner affected by water ingress, structural defects or failed common-property services, the section can support both repair orders and a claim for reasonably foreseeable loss.
The first issue is whether the defective item is common property. The answer may turn on the strata plan, the defect’s location and any applicable by-law. Membranes, external walls, windows, pipes and services cannot safely be classified by rule of thumb alone.
The owner should then create a clear evidence trail:
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notify the strata manager and secretary in writing;
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obtain photographs, expert reports and repair recommendations;
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request relevant records, prior reports, minutes and insurance material;
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put an appropriate motion before the strata committee or general meeting; and
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keep evidence of consequential loss, such as damaged contents, alternative accommodation, repair expenses or lost rent.
A defect does not automatically establish every claimed dollar. The owner must show breach, causation and reasonably foreseeable loss, and must take reasonable steps to mitigate that loss. The owners corporation’s knowledge and response time will often matter. Owners should be cautious about unilaterally undertaking common-property work without approval and later treating the cost as recoverable damages.
If the owners corporation does not act, mediation and an application to NCAT may be available for orders requiring repairs. Section 106(5) damages can also be pursued, but forum and jurisdiction questions can become technical—particularly where parties reside in different States—so the relief and forum should be selected carefully.
From 1 July 2025, section 106(6) generally allows six years from when the owner first became aware of the loss to bring a damages action, replacing the former two-year period. That amendment should not be assumed to revive a claim that had already expired before commencement. Delay also makes causation and evidence harder, regardless of the formal deadline.
Finally, a successful repair demand may require a special levy. As a member of the owners corporation, the claimant may indirectly contribute according to unit entitlement, although insurance, builder or developer recovery may alter the position.
Section 106 is powerful, but it is not a blank cheque. Early notice, expert identification of common property, a proportionate repair proposal and disciplined proof of loss remain essential.
Sources: Strata Schemes Management Act 2015, s 106; NSW Government — Strata law changes; [Vickery v The Owners – Strata Plan No 80412 [2020] NSWCA 284](https://www.caselaw.nsw.gov.au/decision/175b02209676ed598d477b48)
Disclaimer: This article provides general information only and is not legal advice. It does not create a solicitor-client relationship.
