What options exist when a resident’s guest engages in criminal behaviour?
Page 14 | Horizon Strata Management Group
Can an OC tow a car if it’s parked on common property?
Page 16 | Tisher Liner FC Law
Who pays for the repairs when a new owner’s balcony leaks into another lot?
Page 28 | Grace Lawyers
LookUpStrata is Australia’s Top Property Blog Dedicated to Strata Living. The site has been providing reliable strata information to lot owners, strata managers and other strata professionals since 2013.
As well as publishing legislative articles to keep their audience up to date with changes to strata, this family owned business is known for their national Q&A service that provides useful responses to lot owners and members of the strata industry. They have created a national network of leading strata specialists across Australia who assist with 100s of the LookUpStrata audiences’ queries every month.
Strata information is distributed freely to their dedicated audience of readers via regular Webinars, Magazines and Newsletters. The LookUpStrata audience also has free access to The LookUpStrata Directory, showcasing 100s of strata service professionals from across Australia. To take a look at the LookUpStrata Directory, flip to the end of this magazine.
Meet the team
Nikki began building LookUpStrata back in 2012 and officially launched the company early 2013. With a background in Information Management, LookUpStrata has helped Nikki realise her mission of providing detailed, practical, and easy to understand strata information to all Australians.
Nikki shares her time between three companies, including Tower Body Corporate, a body corporate company in SEQ. Nikki is also known for presenting regular strata webinars, where LookUpStrata hosts a strata expert to cover a specific topic and respond to audience questions.
Liza came on board in early 2020 to bring structure to LookUpStrata. She has a passion for processes, growth and education. This quickly resulted in the creation of The Strata Magazine released monthly in New South Wales and Queensland, and bi-monthly in Western Australia and Victoria. As of 2021, LookUpStrata now produce 33 state based online magazines a year.
Among other daily tasks, Liza is involved in scheduling and liaising with upcoming webinar presenters, sourcing responses to audience questions and assisting strata service professionals who are interested in growing their business.
Disclaimer:
www.lookupstrata.com.au www.lookupstrata.com.au
Liza Jovicic Sales and Content Manager
a
denied voting rights for ‘unpaid charges’ they never authorised
an owners corporation be liable if a neighbour’s contractor trespasses and is injured?
Tyrone
pays for the repairs when a new owner’s balcony leaks into another lot?
Leila
Is it usual for an insurance product disclosure statement to include: “we are not independent, impartial, or unbiased”?
Our insurance Product Disclosure Statement says, “we are not independent, impartial, or unbiased.” Is this usual?
The following information is included in our insurance Product Disclosure Statement: “we are not independent, impartial, or unbiased.” Is this a usual inclusion? Does it apply to all insurers?
This does not apply to all insurers, but it is common.
The statement “we are not independent, impartial, or unbiased” is a disclosure required under financial services law when a financial services licensee (such as an insurer or broker) does not meet the criteria for independence as defined by ASIC.
This does not apply to all insurers, but it is common. Many insurers and brokers are required to make this disclosure because they may receive commissions, be part of a corporate group, or have other arrangements that could influence the advice or products they offer. ASIC’s Information Sheet 291 explains these obligations in more detail and outlines the circumstances under which a provider must disclose that they are not independent. You can find that guide here: Example lack of independence disclosure statement with annotations
Mention this offer when requesting a quote from us, and we will provide a discount off our standard fee for service of $250 (GST Inc) for buildings with 10-25 lots or $500 (GST Inc) for buildings with more than 25 lots for the first year you insure with Strata Insurance Solutions
To redeem this offer email a copy of your current policy schedule to Strata Insurance Solutions within 1 month of the publication of this magazine Your policy can expire any time in the next 12 months However we can only provide quotes 30 days prior to the expiry of your policyif your policy is not due now, we will schedule a quote at the appropriate time To ensure we apply this offer to our quotes, please specifically mention you would like to redeem the "LookUpStrata Special Offer"
Take the test todaysee how much you can save.
How to choose the right contractor for concrete spalling remediation
An engineer’s scope of work to replace waterproofing membranes includes amounts for insurance and document lodgement. At this stage of the process, how accurate are the amounts mentioned?
Our strata scheme has 33 units in two buildings. The waterproofing membrane on both roofs needs to be replaced. The roofs are a flat concrete structure, and the building was constructed in 1984.
The engineer’s scope of works quoted a $35,000 premium for the HBCF insurance certificate and $20,000 for the lodgement of documents.
How can I check these quotes are reasonable? How do we know the insurance quote is accurate, given we have not yet gone to tender and thus do not have quotes for the repair costs?
These amounts would likely be subject to change depending on the final project or contract cost.
Costs associated with HBCF and lodgement of documents are generally costs dependent on the extent of works and final value.
If an engineer has prepared a scope, it is unlikely these amounts are fixed quotes and are a guide or provisional allowances that would be subject to change depending on the final project or contract cost.
Check the scope of work qualifications or conditions. If they are unclear, ask the engineer how the costs were established.
Often, provisional allowances are included at the higher end to ensure sufficient funds are allowed. However, the final cost will always be determined once tendering occurs.
Therefore, realistically, checking these costs for accuracy can only occur once the project costs are established. Provisional sums for these items are industry standard, based on the uncertainty of final values.
Bruce McKenzie | Sedgwick bruce.mckenzie@au.sedgwick.com
BUILDING CONSULTANCY
• Defect reports and forensic engineering
• Scope of works
• Dilapidation and risk surveys
• Dispute mediation and expert witness
• Contrator procurement and cost validation
• Construction management
• Capital works funds / maintenance plans
• Digital capability
• Façade assessments
REPAIR SOLUTIONS
• Emergency make safe
• Fire water damage restoration
• Leak detection
• Contamination response
• Building repairs
• Cost validation services
• Digital capability
Are online pre-votes before an AGM valid?
Are online pre-votes before an AGM valid, and do they count towards quorum under the Act?
Our AGM had no physical attendees. Are online pre-votes before the AGM deemed valid? Do these votes count towards the quorum under section 90 of the Owners Corporation Act 2006? The Act states that resolutions of the owners corporation may be made either at a meeting or by ballot, not a combination of both. Opinions of the owners, the committee and the owners corporation manager differ. What is correct?
The Act only provides two ways to vote: at a meeting or by ballot. You cannot do both.
You are correct. The Act provides only two ways to vote: at a meeting or by ballot. You cannot do both. It is not possible to vote online before the meeting, and these votes will not count towards the quorum. A quorum is defined as members present either in person (including by phone or video) or by proxy.
The only way around this would be for a lot owner to fill out a proxy form that directed their proxy on how to vote. Even then, the proxy still needs to attend the meeting.
Alex Smale | Melbourne Owners Corporation Services alex@mocs.com.au
Access to ballot results, including how each owner voted
Can the committee access detailed results of a ballot, including how each owner voted?
After the owners corporation has conducted a ballot, can the committee receive the results with all the details of the owners included? Or should the results only be provided in summary form without disclosing individual voting records?
Yes, subject to limits.
The short answer is yes, however, subject to limits. The committee (or a committee member) can receive the detailed results of a ballot (including, in many cases, who voted which way). This is due to section 144 of the Owners Corporation Act 2006 (the
Act), which requires the owners corporation (OC) to retain records of ballots. In addition, section 146 of the Act states that the OC, upon request by a lot owner, a mortgagee of a lot, a purchaser of a lot or the representative of a lot owner or mortgagee or purchaser of a lot, must make its records (including owner names and addresses and record of the results of ballots) available for inspection, free of charge, at any reasonable time.
However, there are legal constraints and privacy considerations. The Act does not explicitly say ballot results must be anonymised. Under section 172 of the Act, a lot owner whose name or other personal information is kept in the OC’s records or register may apply to VCAT for an order restricting access to that information in exceptional circumstances.
Thus, unless a restriction is imposed via a VCAT order (under section 172) or there is some
overriding privacy law (which is limited in its application in this context), the committee can obtain the full results and details consistent with the record-keeping and inspection rights.
The OC should ensure compliance with privacy obligations and ensure personal information is managed lawfully. For example, disclosing individual vote choices to anyone not an “eligible person” might constitute misuse of personal information.
The records must be inspected at reasonable times. The OC may require supervision to prevent misuse. They may only provide copies for a reasonable fee; however, they cannot charge for inspection.
Some items, such as voting papers or ballots, must only be kept for 12 months after the vote under the Act. If the ballot is older than that, the physical papers may no longer exist.
To summarise:-
• Yes — the committee can receive the detailed ballot results (including which owner cast which vote) if those details are part of the OC’s statutory records and have not been restricted by VCAT.
• However, it is not absolute: access may be limited by a VCAT order (under section 172), by privacy constraints, or by the way the ballot process was conducted (e.g. anonymised ballots).
• Any disclosure of personal voting details should be handled carefully, in line with data privacy principles and the rights of lot owners to apply for restriction of their personal information.
Ben Quirk | TOCS ben.quirk@tocs.co
READ MORE HERE
Insurance is one of the fastest-moving challenges in strata today. Premiums are rising, underwriters are more
and exclusions are widening. Building age, combustible cladding, lithium battery fire risks and climate -related weather damage are all driving insurers to demand more evidence of sound risk management.
For strata managers, this means moving from a reactive stance to a proactive one. Rather than waiting for issues to surface through claims or complaints, the priority should be prevention and preparedness. Routine inspections help identify hazards early, detailed documentation shows the scheme is meeting its duty of care, and independent reports safeguard owners’ assets while reducing the risk of claim delays
Where QIA Group helps: Our Safety Reports identify compliance and safety issues before they escalate into costly claims, while our Insurance Valuations ensure schemes maintain accurate cover and avoid the risks of underinsurance. Together, these reports give strata managers and committees the confidence to demonstrate due diligence and protect their communities.
What options exist when a resident’s guest engages in criminal behaviour?
What is the best way to manage safety concerns caused by a resident’s guest who engages in criminal behaviour?
A lot owner frequently has a friend stay who is dealing drugs and stolen property from the building, creating safety concerns for residents, with people arriving at all hours. The lot owner has mental health issues and receives support from workers who have confirmed the drug activity. Police are involved, and residents are documenting evidence, but the process is slow.
The committee is considering installing security cameras, but due to cost, is also exploring dummy cameras as a deterrent. Is this a good idea, or what other options exist for addressing this situation?
The best pathway to address the behaviour is involving the police, given the potentially illegal activity.
Cameras are a good way to monitor and provide additional evidence to the police in the event of an incident or a set of circumstances that you are currently experiencing. There are specific parameters to follow when using CCTV cameras in common property, and your security installer should be aware of these and provide you with relevant advice.
The Dispute Resolution process under Part 10 of the Owners Corporation Act 2006 is an option, but may not necessarily achieve the outcome you are hoping for. The best pathway to address the behaviour is involving the police, given the potentially illegal activity.
Joel Chamberlain | Horizon Strata Management Group joel.chamberlain@horizonstrata.com.au
A Refreshing Approach to Strata Management
Experienced and Professional Owners Corporation Managers in Melbourne
At Horizon Strata, we make sure the job gets done properly without all the fuss.
Owners Corporation management requires expert knowledge as well as forward logical thinking to allow residents to live harmoniously, and owners to have peace of mind.
Horizon takes great pride in operating under these principles. This allows us to provide premium and transparent management for any strata-titled property.
Together with the day to day running of your Owners Corporation we provide comprehensive services which support owners through some of the most difficult & complex projects.
We are experienced in handling:
• Combustible Cladding
• Building Defects
• Financial Management
• Insurance Matters
Horizon does not take commissions or rebates from any supplier or Insurance provider. Our buildings under management range from 20 to 400 Lots so you can be assured we have the capability to manage your Owners Corporation, no matter the size.
Can an OC tow a car if it’s parked on common property?
Can an owners corporation in Victoria tow a car if the car is parked on common property?
If a vehicle is blocking common property, the owners corporation should call the police and have them organise the removal of the vehicle.
Sections 53A to 53E of the Owners Corporations Act 2006 deal with goods that are abandoned on common property. An owners corporation may only dispose of goods abandoned on common property in accordance with those sections.
Section 53C of the Act provides that before disposing of the goods, an owners corporation may move the goods to a safe place if:
• The goods block reasonable access to a lot or the common property; and
• The owners corporation has made a reasonable attempt to locate or communicate with the person who abandoned the goods to give the person a notice of intention to dispose of abandoned goods.
In respect to towing, under the Owners Corporations Act 2006, an owners corporation must have regard to the above process before moving any goods/vehicle.
Notwithstanding the above, owners corporations need to be aware of section 90C of the Road Safety Act 1986. This provides:
A person not being a police officer, an authorised person under Part 6A or a Sheriff or a person authorised to do so by or on behalf of the owner or driver of a motor vehicle must not detain or immobilise (whether by wheel clamps or any other means) a motor vehicle that has been parked or left standing on land to which the section applies.
The section applies to land other than land that is a public highway under the Local Government Act, a freeway or arterial road or a public parking area.
This means that common property is subject to this prohibition and owners corporations arguably cannot tow vehicles either directly or via a nominated tow truck operator.
Where a vehicle is blocking common property, etc, the owners corporation should call the police and have them organise the removal of the vehicle.
Alternatively, owners corporations may enter into a parking enforcement agreement with the local council under section 90D of the Road Safety Act
Phillip Leaman | Tisher Liner FC Law ocenquiry@tlfc.com.au READ MORE HERE
What is the correct number of roof anchor points?
To comply with safety standards, is there a formula to determine the number of roof anchor points per square metre?
We usually engage a rope access contractor under a design and construct arrangement to determine the appropriate anchor layout.
Anchor spacing isn’t based on a simple square metre allocation. It depends on several factors, including roof layout, access requirements, and regulatory guidelines. In most cases, we engage a rope access contractor under a design and construct arrangement to determine the appropriate anchor layout.
It’s also important to distinguish between the two types of anchors: fall arrest and rope access. Fall arrest anchors may not meet the strength or configuration requirements for rope access anchors.
Sam Hogg | PASG Projects info@pasg.com.au
Are
strata
managers required to prepare annual financial statements?
To comply with accounting standards, is a strata manager of a four-lot owners corporation required to prepare annual financial statements?
Most OCs prepare special purpose financial reports and do not need to follow Australian Accounting Standards.
In Australia, an owners corporation (OC), including a 4-unit OC in Victoria, is generally not required to prepare financial statements in accordance with Australian Accounting Standards, unless certain conditions apply.
1. Special Purpose vs General Purpose Reporting
• Special Purpose Financial Reports (SPFRs): Used when the entity is not publicly accountable and financial reports are intended only for a limited group of users (like the lot owners). (Think small four-unit blocks)
• General Purpose Financial Reports (GPFRs): Required when the entity is publicly accountable or there are users dependent on general purpose reports to make decisions. (Think Telstra or BHP Billiton)
2. Owners Corporation Context
• Most OCs prepare SPFRs, because:
• They are not publicly accountable.
• The users of the financial statements (e.g. lot owners) can request additional information if needed.
• The financials are usually prepared for internal use, AGM presentation, and compliance with the Owners Corporations Act 2006 (Vic).
3. Minimum Legal Requirements
• Under the Owners Corporations Act 2006 (Vic), financial statements must be:
• Presented at the AGM.
• Include an income and expenditure statement.
• Include a statement of financial position (assets and liabilities).
4. As the peak body in Australia and New Zealand for the Strata Industry and Stakeholders, what does the Strata Community Association (SCA) say:
• SCA Best practise: The OC must resolve that it is a non-reporting entity to support the preparation and use of special purpose financials reports to meet the information needs of members/ lot owners.
• In summary: Most OCs prepare special purpose financial reports and do not need to follow Australian Accounting Standards.
The Knight ella@theknight.com.au
We’ll secure the best deal for you.
We specialise exclusively in Strata Business Sales. No rent rolls, no distractions – just strata.
Why Choose Us?
12+ Years of Proven Strata Brokerage Experience
Nationwide Network of Serious Buyers Ready to Invest
Confidential and Secure Transactions to Protect Your Privacy
Comprehensive Information Memorandum Created to Show Your Business’s Strengths
Our fact-driven valuation process is backed by in-depth calculations and over a decade of industry experience, ensuring you get the best price.
Owners denied voting rights for ‘unpaid charges’ they never authorised
What can owners do if they were denied voting rights for alleged unpaid charges they never authorised?
Some owners were locked out of voting on the basis that they were unfinancial due to alleged monies owing for faulty remotes. The remotes failed because the gate motor reached its limits and ejected existing remotes when new ones were installed. The supplier tested the system and confirmed this was the cause. Despite this, the committee chair and the owners corporation manager ignored the test results. The owners never authorised the on-charges and believe this was a tactic to prevent them from voting out the chair. What can they do?
Unpaid fees mean any amount owing.
The Owners Corporations Act 2006 covers voting eligibility in Section 89B of the Act; 89B Can a lot owner vote if fees are unpaid?
1. A lot owner who is in arrears for any amount owed to an owners corporation is not entitled to vote (either in person, by ballot or by proxy) on a resolution of the owners corporation unless the amount in arrears is paid in full.
2. Despite subsection (1), a lot owner who is in arrears for any amount owed to an owners corporation may vote on any matter where a special resolution or unanimous resolution is required.
3. For the purposes of subsection (1), the amount in arrears is taken to be paid in full if it is paid to the owners corporation—
a. in cash; or
b. otherwise, not less than 4 business days—
before the lot owner is required to vote on the resolution.
The key wording here is, ‘any amount owed’. If the owners corporation has sold you a remote, and it hasn’t been paid for, and the fee for it has been legally struck, then ‘yes’, this will render you ineligible to vote on ordinary resolutions.
Practically speaking, if you have ordered a remote, FOB or key, the usual process is that you would have to pay for it first. If you have been given the device before making payment, and it is not working, there is perhaps also the viewpoint that the contractor and/or OC shouldn’t have to assist further until they’ve received payment for what was meant to have been paid for originally.
Without knowing more about how the fees were struck and issued, or the specifics of the situation behind it, you may well be better off paying the amount owing at this time, and then once ‘financial’, pursuing either a refund/credit to your account, without having lost your ability to vote.
If the situation is that you paid for a device, the gate motor failed afterwards and you are now stuck with a device that doesn’t work on the replacement motor, the usual practice is for the OC to replace all now-defunct devices at its cost – which, to be honest, is still at owners cost, given owners pay for the levies of course.
Alex McCormick | SOCM alex@socm.com.au
Excellence Transparency Partnership
Contact SOCM for a free and confidential assessment of your owners corporation functions, or a formal proposal for your management needs.
W socm.com.au E info@socm.com.au T 03 9495 0005
OWNERS CORPORATION MANAGEMENT SERVICES
At SOCM, we have developed an approach that focuses on delivering personalised service of the utmost quality and demonstrating exceptional professionalism in every aspect of our work. Our impressive property portfolio and positive testimonials serve as evidence of our position as a top Owners Corporation Management company in Victoria. We consistently maintain this position by prioritising comprehensive communication and promptly responding to our clients’ needs.
ACCOUNTING & FINANCIALS
COMMISSION FREE INSURANCE
DOCUMENTATION
MEETINGS & BALLOTS
LEGISLATIVE ADVICE & GUIDANCE
MAINTENANCE
“SOCM has provided an extensive service in Owners Corporation Management for more than a decade.”
Our OC engages preferred contractors without quotes or proper certification
What can I do if our OC engages preferred contractors without quotes or proper certification?
I am a concerned non-committee owner. My owners corporation and committee are engaging contractors with whom they have had prior relationships instead of obtaining three quotes. They are also failing to ensure proper certification after the contractors complete the work. The contractors charge well above industry prices and are being paid in advance before the work starts. What can I do about this?
Both the OC and its committee must ensure that all actions are undertaken transparently, in compliance with legislative requirements, and in the best interests of all lot owners.
An OC is only permitted to exercise its functions and powers in accordance with the legal procedures prescribed under the Owners Corporation Act 2006 (OCA) and its associated regulations. Pursuant to section 4 of the Act, the OC’s core functions include managing and administering the common property, as well as repairing and maintaining any related chattels, fixtures, fittings, and services. While an OC may delegate some of its functions to the committee, the committee is similarly bound to act honestly, in good faith, and with due care and diligence when making decisions.
Both the OC and its committee must ensure that all actions are undertaken transparently, in compliance with legislative requirements, and in the best interests of all lot owners. Although the OCA does not impose a legal requirement to obtain multiple quotes when engaging
contractors or suppliers, it is widely regarded as best practice to do so to promote transparency, support informed decision-making, and protect the financial interests of the owners corporation.
As a non-committee member, you have various avenues available to you if you suspect that the committee or the OC is failing to act properly, particularly in relation to financial management, procurement practices, or potential conflicts of interest.
• Access records. Pursuant to section 149 of the OCA, you are entitled to request access to the OC records, including contractor invoices and quotes.
• Write to the OC manager and raise your concerns, or follow the internal dispute resolution process
• Convene a special general meeting under section 74 (if you have support from 25% lot entitlement for the OC). You may seek to dissolve the committee and vote in a new committee.
• Submit a motion to be included at the next general meeting, requiring the OC to adopt a procurement policy (i.e., a minimum of two or three quotes).
• If the OC fails to address your concerns and you believe they have acted against their statutory duties, you may lodge an application with VACT under section 162 of the Act.
It should be noted that members of a committee or sub-committee are not personally liable for anything done or omitted, if it is done in good faith.
Julia Moroz | Bugden Allen julia@bagl.com.au
Finance without the Fights
Real Choices. Real Support.
Hybrid Loans that give owners choice and committees control
Flexible funding and exceptional support every step of the way Defect Rectification Insurance Premiums Refurbishment Litigation Green Initiatives
Could an owners corporation be liable if a neighbour’s contractor trespasses and is injured?
Could the owners corporation be liable if a neighbour’s contractor trespasses onto common property, such as climbing onto a carport roof, and is injured or causes damage?
A committee member recently found an arborist, contracted by the neighbouring property, standing on the roof of our carport to trim a hedge. The committee member told the arborist it was dangerous, but did not instruct them to leave the roof or ask them to seek permission from the owners corporation. If the owners corporation does not make a formal complaint, does this amount to tacit approval and expose the scheme to liability for injury or damage caused while on the roof? Would it be advisable to post signage stating that no one is permitted to access the roof without written permission from the owners corporation?
The most important consideration is that the owners corporation holds public liability insurance.
Personal injury and public liability claims are always assessed on a case-by-case basis, and outcomes can vary significantly depending on the specific circumstances and the legal arguments put forward.
In this instance, while it is difficult to predict how a court or insurer might interpret a committee member observing the arborist on the roof without immediately intervening, it is unlikely this would automatically amount to tacit approval of the activity. However, in some cases, a failure to act or respond can be raised as a contributing factor, which is why it’s helpful to document such incidents and any actions taken.
The most important consideration is that the owners corporation holds public liability insurance. This insurance is designed to respond to claims involving injury or damage on common property, including legal defence costs. As long as appropriate cover is in place, these matters would typically be handled by the insurer’s solicitors if a claim were made.
While some might suggest installing signage as a deterrent, it’s important to recognise that if someone is already prepared to trespass onto the roof without permission, it’s questionable whether a sign would prevent them from doing so. It is also uncommon for owners corporations to install signage for this type of scenario, nor is there any clear obligation to do so. The arborist was, after all, acting without permission and in an area where he had no right to be.
It is difficult to say with certainty whether or not the owners corporation could be held liable in any future incident, as these matters are circumstantial. However, whenever an incident occurs on your property, even involving a
trespasser, there is always the possibility of being drawn into a claim. That is why the most important protection remains your public liability insurance, which will cover you for defence and investigation costs in the event of a claim. In this situation, it may be helpful to consider writing to the neighbouring property owner to make it clear that no access to your property is permitted without written authorisation from the owners corporation. This puts the issue on record and helps to prevent any confusion in future.
Who pays for the repairs when a new owner’s balcony leaks into another lot?
What rights do I have to require the owners corporation to fix my balcony and the apartment below if a balcony leak was first raised five years ago but never addressed?
Six months after I purchased an apartment, I received a notice that my balcony was leaking and causing damage to the apartment below. When I reviewed the past AGM minutes, I found that the leak was mentioned five years earlier but no breach notices were served. Can I request that the owners corporation repair my balcony and the one below?
First, determine the source and cause of the leak.
The first step in addressing this question is to determine the source and cause of the leak. In many cases, balcony leaks occur because of a failed waterproofing membrane beneath the tiles. However, there may also be building elements on the balcony that are common property, and if these have caused the water ingress, responsibility may rest
with the owners corporation (OC). For this reason, the plan of subdivision must always be reviewed before liability can be assigned. This document defines the boundaries of each lot and the common property, as well as who is responsible for the repair and maintenance of these respective areas.
Confusion frequently arises where boundaries are defined by what is known as “interior face.” If a balcony is subject to interior face boundaries, the lot extends to the interior face of any wall, floor, ceiling, window, door, or balustrade of that section of the building. In practical terms, this means that internal coverings such as tiles, waterproof membranes, and fixtures attached to the balcony surface form part of the lot and are not common property. The Victorian Civil and Administrative Tribunal (VCAT) has consistently confirmed this interpretation, ruling that where interior face boundaries apply, the responsibility for maintaining the waterproofing membrane and balcony tiles lies with the lot owner rather than the OC.
The liability of a subsequent lot owner for water ingress depends on whether they fail to repair and maintain their property within a reasonable time after becoming aware of the
issue. If an owner knows that water is flowing from their lot and does not take reasonable steps to prevent the problem from worsening, they may be liable for any resulting damage to other lots. Expert evidence, such as a building consultant’s or plumber’s report, is often relied upon to establish both the source of the leak and whether there has been water ingress from one lot to another. Where a lot owner ignores or fails to act on a notice to repair or maintain their property, this will also weigh heavily in any assessment of liability.
Under section 129 of the Owners Corporations Act 2006 (Vic), lot owners are obliged to properly maintain, in a state of good and serviceable repair, any part of their lot that affects the outward appearance of the lot or the use or enjoyment of other lots or the common property. If the plan of subdivision shows that the balcony falls within the lot boundaries, then the owner is responsible for repairing and maintaining it. The fact that the OC was aware of the leak years earlier,
as shown in the AGM minutes, but did not issue breach notices does not diminish the responsibility of a subsequent lot owner to repair and maintain their balcony once they are notified of a leak emanating from it.
If the OC agrees to carry out repairs to the balcony and the lot below, its committee will likely consider whether the “benefit principle” should apply. This principle allows the OC to allocate the cost of works on the basis that those lot owners who benefit from the repair are the ones who pay for it. In practice, this may mean that the owners of the lots directly affected by the leaking balcony are required to cover the repair costs, rather than all lot owners.
Benefits of having an SCA Member as your Strata Manager
Choosing the right Strata Manager for your building is important If your Strata Manager is a member of the Strata Community Association (SCA), you will have someone who is professional, has expert knowledge and is dedicated to making sure your property is well managed
What sets an SCA member apart?
Expert Knowledge: SCA members undergo professional training and stay updated on the latest legislation governing strata communities
Code of Ethics: SCA members must adhere to a Code of Ethics which outlines ethical standards, professional behaviour, and compliance requirements
Continuous Learning: SCA members are required to participate in a minimum of 6-12 hours per year of education and training to maintain their membership
Great Resources: SCA members have access to a large range of tools and resources prepared by the SCA These include guidelines on best practices and templates for different tasks
Updated Contract of Appointment
We’re excited to announce the release of the SCA (Vic) Contract of Appointment 2025 (Version 8) The 2024 contract saw major reforms to address several key areas, including:
Compliance with new Australian Consumer Laws and Unfair Contract Terms
Transparency in insurance commission remuneration
Enhanced disclosures of beneficial relationships
Following these significant revisions, this year’s update is all about refinement. We’ve clarified language, sharpened fee and service descriptions, and responded to member feedback to make the contract clearer, fairer, and easier to use
These changes build confidence for Owners Corporations and give Managers a practical, compliant framework that reflects both legislation and industry best practice
SCA (Vic) A100 November
Are you new to the world of strata management and eager to kickstart your career with confidence?
Have you been engaged in this industry for a considerable amount of time and feel the need for a refreshing upgrade?
No matter where you stand in your career, the A100 Introduction to strata course is tailor-made to empower all strata professionals
Join us for this immersive in-person experience, designed to provide you with a comprehensive overview of the strata industry over three engaging days
Don't miss out on this incredible opportunity to invest in your future and make a positive impact in your strata community Secure your spot today and join us on this exciting learning journey!
Hurry, as there are limited spots available!
Book your tickets here!
SCA (Vic) Strata Community Pillar Awards of Excellence 2025
Join us for an unforgettable evening as we celebrate the 2025 SCA (Vic) Pillar Awards for Excellence The event will recognise outstanding achievement and innovation within the Victorian strata community
The gala dinner and awards presentation honours individuals and organisations who demonstrate exceptional leadership, professionalism, and service in the strata industry
Whether you're nominated or coming along to support your peers, this is a great opportunity to connect with industry leaders, celebrate success, and be inspired by the best in our community
Book your tickets here!
Looking for more?
For all the latest news, updates and events, head to our website www vic strata community and don’t forget to follow us on LinkedIn, Instagram and Facebook!