Resolving Common Property Disputes in Strata: By-Law Breaches, Leaks and Tribunal Action
Common property disputes can reveal serious strata risk. Learn how water leaks, by-law breaches, NCAT and VCAT disputes work, and what buyers should check in strata records before purchasing.
Ashkan Tavassoli
9 min read
On this page
- By-law breaches, water leaks, tribunal action, and what buyers should look for
- The first issue: is it actually common property?
- Common property disputes usually fall into two categories
- What to do when the owners corporation refuses to fix the problem
- What good evidence looks like
- NSW: what usually happens
- Victoria: what usually happens
- When the dispute is urgent
- What buyers should learn from these disputes
- What a thorough strata records check should focus on
- Practical advice for owners
- Practical advice for buyers
- Final takeaway
By-law breaches, water leaks, tribunal action, and what buyers should look for
Living in strata means sharing responsibility for common property. When that system works, repairs are handled quickly and disputes stay manageable. When it does not, small issues can turn into long, expensive problems.
A common example is a water leak. An owner reports staining, dampness or mould, but the owners corporation delays action, argues about responsibility, or keeps applying temporary fixes instead of addressing the cause. In other cases, the issue is not maintenance but a by-law or rule breach, such as unauthorised works, noise, access refusal, or misuse of common property.
For both owners and buyers, these disputes matter. They can affect repair costs, insurance, livability, resale value, and the financial stability of the building.
This guide explains how common property disputes usually unfold in Australia, with NSW and Victoria used as practical examples because their dispute pathways are well defined through NCAT and VCAT. In NSW, the owners corporation has a statutory duty to maintain and repair common property, and most strata disputes must go through mediation before NCAT unless an exception applies. In Victoria, owners corporations also have a duty to repair and maintain common property, and an internal complaints process is expected before a VCAT application.
The first issue: is it actually common property?
Before talking about blame, the first question is always this:
Is the problem part of the lot, or part of the common property?
That matters because the answer often determines who is responsible for repairs.
In NSW, section 106 of the Strata Schemes Management Act 2015 says the owners corporation must properly maintain and keep common property in a good and serviceable state of repair. In Victoria, section 46 of the Owners Corporations Act 2006 requires the owners corporation to repair and maintain common property.
In practice, disputes often arise when the damage appears inside a lot, but the cause sits elsewhere. For example:
Problem seen inside the lot | Possible actual source | Often treated as |
|---|---|---|
Ceiling stain | Roof membrane or flashing failure | Common property issue |
Damp wall | External wall or building joint failure | Common property issue |
Water entry near balcony door | Waterproofing, slab edge, facade issue | Often common property, depending on plan |
Plumbing leak | Shared service or riser | Often owners corporation responsibility |
Bathroom leak | Internal lot waterproofing failure | Often lot owner issue |
This is why a proper review should not stop at the visible damage. It should identify the likely source, check the strata plan, and match the issue against the building’s legal boundaries.
Common property disputes usually fall into two categories
1. Repair and maintenance disputes
These happen when the owners corporation is responsible for common property but does not act properly or fast enough.
Typical examples include:
ongoing roof leaks
failed waterproofing affecting multiple lots
facade cracking or water ingress
damaged shared plumbing or drainage
repeated temporary repairs with no permanent rectification
2. By-law or rule breach disputes
These happen when a person’s conduct or works are causing the problem, or making it harder to fix.
Typical examples include:
unauthorised renovations affecting waterproofing
refusal to allow access for inspection or repair
repeated noise or nuisance
storage or use of common property in breach of rules
pet, parking or behavioural disputes
In NSW, by-laws are enforced through the strata scheme framework, including notices to comply and tribunal applications in appropriate cases. In Victoria, owners corporations use their complaint and rule enforcement process, with written notices and an internal dispute pathway before escalating to VCAT.
What to do when the owners corporation refuses to fix the problem
From a practical inspection and dispute perspective, the right approach is:
identify the issue, document it properly, notify in writing, escalate methodically, and preserve evidence.
That matters because tribunals do not respond well to vague frustration. They respond to clear facts, timelines, documents and evidence.
A practical escalation path
Step | What to do | Why it matters |
|---|---|---|
1 | Confirm whether the issue is lot property or common property | Responsibility depends on this |
2 | Gather evidence early | Photos, reports and dates become critical later |
3 | Notify the owners corporation or strata manager in writing | Verbal complaints are often denied or forgotten |
4 | Request inspection, scope of works, and written response | Forces the issue into the formal record |
5 | Check whether the issue also involves a by-law or rule breach | This may change the enforcement path |
6 | Use mediation or internal complaints procedures | Often required before tribunal |
7 | Apply to NCAT or VCAT if unresolved | This is the formal legal step |
What good evidence looks like
In dispute matters, the strength of the case often comes down to how well the evidence is organised.
The most useful evidence usually includes:
Evidence type | Why it helps |
|---|---|
Dated photographs and video | Shows progression and severity |
Leak log or timeline | Shows frequency, delay, and notice history |
Expert report | Helps identify source and scope of repair |
Strata plan or subdivision plan | Helps determine if it is common property |
Emails to strata manager or committee | Proves notice was given |
Meeting minutes | Shows whether the issue was discussed, ignored, deferred, or rejected |
Quotes or scopes of work | Shows whether the scheme investigated properly |
Insurance correspondence | May show known defect history |
VCAT’s evidence guidance makes clear that parties should be prepared with relevant documents, photos, plans, witness material and expert evidence where needed. NCAT likewise expects parties to prepare their material clearly before hearing.
NSW: what usually happens
In NSW, many strata disputes must first go through mediation arranged through NSW Fair Trading before an NCAT application is made. The NSW Government states that mediation is compulsory for most strata disputes, although some matters can go directly to the Tribunal, including some access, penalties and records-related matters. NSW Fair Trading also offers a free strata mediation service.
That means a typical NSW pathway looks like this:
NSW dispute stage | What usually happens |
|---|---|
Written complaint | Owner reports issue to strata manager or owners corporation |
Internal discussion | Committee or manager may inspect or seek quotes |
Mediation | Usually required before NCAT |
NCAT application | Used if the dispute is not resolved |
Tribunal orders | NCAT may make repair, compliance, access or penalty-related orders |
This is especially relevant for water ingress, facade issues, common plumbing defects, and access disputes linked to repair works.
Victoria: what usually happens
In Victoria, the owners corporation must have an internal complaints process. Consumer Affairs Victoria says complaints should first go through that internal process, and written records should be kept. If unresolved, parties may seek dispute resolution assistance and can then apply to VCAT.
A typical Victorian pathway looks like this:
Victoria dispute stage | What usually happens |
|---|---|
Written complaint | Complaint made under the internal process |
Notice to rectify | If a rule or obligation is breached |
Final notice | If the breach continues |
Internal grievance steps | Owners corporation process must be followed |
VCAT application | Used if the matter remains unresolved |
Tribunal orders | VCAT can order action, penalties, damages, or other remedies |
Consumer Affairs Victoria also notes that if an owners corporation takes no action on a formal complaint, it must give reasons in writing. That is important, because written refusal often becomes useful evidence later.
When the dispute is urgent
Some matters cannot wait for a normal hearing timetable.
Examples include:
active water ingress causing ongoing damage
electrical safety concerns
severe mould growth
access urgently needed to stop further damage
a resident actively obstructing essential repairs
In urgent cases, temporary or interim orders may be available depending on the jurisdiction and facts. In NSW, some matters bypass mediation and go directly to NCAT. In Victoria, VCAT can deal with urgent matters and has injunction processes for appropriate cases.
What buyers should learn from these disputes
For a buyer, the legal dispute itself is only part of the problem.
The bigger issue is what the dispute reveals about the building.
A history of unresolved common property problems can point to:
poor maintenance culture
underfunded capital works
weak committee decision-making
recurring defect issues
insurance exposure
likely future special levies
legal costs that will ultimately be borne by owners
That is why a proper strata records review should not only look for levies and insurance. It should also look for patterns.
Key red flags in the records
Red flag | Why it matters |
|---|---|
Repeated references to leaks or water ingress | Suggests unresolved defect history |
Same issue appearing across several years of minutes | Indicates delay or ineffective repair strategy |
Motions deferred multiple times | Suggests governance problems or reluctance to spend |
Legal or tribunal references | May indicate ongoing conflict and cost risk |
Access disputes | Can delay repairs and increase cost |
Insurance claims or premium pressure | May suggest recurring building problems |
Heavy spending on consultants without works progressing | Suggests a dispute that is dragging on |
In NSW, buyers can inspect strata records under the records inspection framework, and the NSW Government also points buyers toward strata information certificates when assessing a scheme. In Victoria, records and certificate information are designed to disclose important financial and maintenance issues, including repairs and works that may create extra costs beyond approved budgets.
What a thorough strata records check should focus on
For this kind of risk, these are usually the most important documents:
Document | What to look for |
|---|---|
AGM and committee minutes | recurring defects, dispute history, delayed motions |
Maintenance reports | whether the issue has been identified properly |
Engineer or waterproofing reports | root cause and recommended works |
Capital works planning | whether the repair has been budgeted |
Special levy notices | whether owners were hit with extra costs |
Complaint records | whether there is a pattern of conflict |
Legal invoices or references to NCAT/VCAT | evidence of active or recent disputes |
Insurance records | prior damage, exclusions, claim history |
This is exactly where a proper AI-assisted strata review platform can help. It can pull repeated defect references across years of records, detect patterns that are easy to miss manually, and show whether a “small issue” is actually a long-running building problem.
Practical advice for owners
If you are already in the building and dealing with a dispute:
Do not rely on phone calls alone. Put everything in writing.
Do not focus only on the visible damage. Identify the likely source.
Do not wait too long to collect evidence. Leaks change over time.
Do not assume the strata manager’s first response is the final answer.
Do not ignore repeated delay. Delay itself becomes part of the evidence.
If the issue is serious, get a targeted expert report early.
Keep a clean chronology. It often matters more than emotion.
Practical advice for buyers
Before buying into a strata scheme, ask:
Has this building had repeated leak or waterproofing issues?
Are there unresolved common property disputes?
Have owners been discussing the same repair for years?
Is there evidence of tribunal action or formal complaints?
Are major repairs being properly funded, or just postponed?
A building with unresolved common property disputes is often not just a legal problem. It is a signal about how the scheme is run.
Final takeaway
Common property disputes are rarely just about one leak, one letter, or one difficult owner.
They usually reveal something bigger:
how seriously the building takes maintenance
how the committee makes decisions
whether by-laws and rules are enforced
whether owners are likely to face future cost and disruption
For owners, good documentation and early escalation can make the difference between a fixable issue and a prolonged dispute.
For buyers, a careful records check can reveal whether the building has a pattern of unresolved maintenance and legal conflict before you commit.
That is one of the biggest advantages of a proper strata review: it helps you see not just the current defect, but the building’s broader dispute and maintenance history.
Frequently asked questions
Who is responsible for repairing common property in NSW and Victoria strata schemes?
In both NSW and Victoria, the owners corporation is generally responsible for repairing and maintaining common property. Responsibility usually depends on whether the affected area or leak source is classified as common property on the strata plan or plan of subdivision.
What should an owner do first when a strata common property dispute involves a water leak?
Start by confirming whether the issue involves common property, then gather evidence such as photos, reports, moisture readings, plans, and correspondence. After that, send a written repair request to the owners corporation or strata manager and keep a clear timeline of events.
Do you need mediation before going to NCAT or VCAT for a strata dispute?
In NSW, most strata disputes must go through free NSW Fair Trading mediation before an NCAT application can be accepted, unless an exemption applies. In Victoria, the owners corporation’s internal complaints process usually needs to be followed before applying to VCAT.
What evidence is most useful in a common property dispute at NCAT or VCAT?
The strongest evidence usually includes a plan extract, a clear chronology, dated photos or videos, moisture readings, expert reports identifying the likely cause, meeting minutes, and written correspondence showing the owners corporation was notified and how it responded.
Can by-law or rule breaches affect a strata water leak dispute?
Yes. If a leak is linked to unauthorised works, access refusal, or other conduct issues, the dispute may involve both repair obligations and by-law or rule enforcement. In NSW, this can include a Notice to Comply and possible penalty action if the breach continues.
What should buyers check to avoid hidden strata dispute risks before purchasing?
Buyers should review strata records or owners corporation certificates for signs of recurring leaks, waterproofing defects, engineering reports, insurance claims, special levies, repeated repair delays, tribunal disputes, and recurring legal or maintenance costs.
What happened in a building, and where it is written
StrataReports reads the full document package of one strata scheme and reports what happened in it: levies, repairs, disputes and insurance. Every finding links to the page of the source document it came from.