Body Corporate Property Obligations in NSW

7 September 2025 in Property Dispute Lawyers | 6 min read | skip to FAQs

This article discusses body corporate property obligations. In NSW, the term ‘body corporate’ has been replaced by the term ‘owners corporation’. However, the term body corporate is still very widely used. We therefore use both terms in this article.

When a strata title property is purchased the owner of the property becomes part of the building corporation. The body corporate manages strata property. One of the obligations it has is the repair and maintenance of common property, as stated in section 106 of the Strata Schemes Management Act 2015 (NSW) (The Act).

Body Corporates/Owners Corporations: Some explanations

1. Body corporates, now known as owners corporations are made up of all the ‘lot’ owners in a strata building or complex. For instance, all the owners of apartments in an apartment block. The body corporate is responsible for the management of the strata scheme, ensuring it runs smoothly and efficiently. A strata scheme is land made up of common property and the various lots owned by individuals. The management of a strata scheme by the owners corporation covers a wide range of relevant decisions and their implementation and documentation. The areas these decisions cover include insurance, finances, adherence to government legislation, discussions involving by-laws and the formal registration of by-laws, employment of a strata manager and building manager and common property maintenance and repair.
2. The owners corporation elects representatives who sit on a strata committee. The representatives are mostly fellow lot owners who are not paid to join the committee. The strata committee members are elected and appointed at the annual general meeting (AGM) and usually meet several times a year to discuss issues and make decisions affecting the property and owners. The discussions and decisions made are formally recorded and distributed to all members of the owners corporation. Information regarding the AGM and the strata committee are included in individual levies paperwork.
3. The owners corporation also usually appoints a strata manager/strata managing agent who assists with the running of the strata scheme by assuming responsibility for some of the requirements. Commonly, this involves insurance, asset management, distribution of meeting minutes, and financial records. The strata manager must provide reports to the strata committee and body corporate six monthly. There is no legal requirement to have a strata manager, however most strata buildings have a strata managing agent to assist in the smooth running of the strata scheme. Recent legislative changes in NSW have provided essential disclosure obligations for strata managers to ensure transparency in all of their dealings.
4. The body corporate also usually appoints a building manager who assists with common property maintenance and access.
5. By-laws are basically rules that regulate the behaviour of residents, owners and visitors to a strata complex. They typically involve issues such as parking, noise restrictions, renovations to individual owner lots, pet ownership, sub-letting for short term holiday accommodation, prohibition of smoking on common property, use of shared facilities such as time restrictions of pool or gymnasium usage, use of private balconies, such as restrictions on clothes drying.

The guidelines and regulation of by-laws is legislated by the Strata Schemes Management Act 2015 (NSW) and Strata Schemes Management Regulations 2016 (NSW). By-laws can be changed or new by-laws be introduced for an individual strata scheme if approved by the body corporate. This involves proposing, and writing a new by-law which is then discussed and voted on at the AGM. A special resolution needs to be passed to approve the by-law and no more than 25% of the owners can vote against the change.

It is the duty of the owners corporation to have the by-laws registered with the NSW Land Registry Services. This must occur within six months and be in the form of a complete set of by-laws. Upon registration the strata by-laws and are enforceable upon all occupants. The property dispute lawyers at BSM Sydney Lawyer can assist with writing and registering amended or new by-laws.

Strata Title Property

Typically, strata title property includes those with common areas for all residents such as pools, elevators, fitness centres, common gardens, and visitor parking spaces. It includes both residential and commercial properties. Apartments, townhouses, offices, retail outlets and retirement villages are some of the common properties that are subject to strata by-laws and the management of a body corporate. Strata by-laws, and the obligations of body corporates, are primarily governed by the Strata Schemes Management Act 2015 (NSW) and the Strata Schemes Management Regulation 2016 (NSW).

Does my Body Corporate have to Maintain the Property?

The body corporate has an obligation to maintain and repair the common property, an obligation that is commensurate with the strata fees that are payable by residents. Body corporates do not have an obligation to maintain or repair private property, known as lot property within a strata scheme.

Common property clearly includes common areas as detailed above. In addition, for strata plans registered after 1st July 1974, it also includes the following, some of which are related to the structure of the building:

1. External and balcony doors and balustrades
2. Windows in common property wall, including window seal, window furniture, sash cord and original insect screen
3. Wiring or plumbing that is in common property wall, floor or ceiling
4. Penetrations for ventilation
5. Intercom handset and wiring
6. Fire alarms
7. Original flooring, including original waterproofing in bathroom
8. Air conditioning systems, satellite dishes or solar panels serving more than 1 lot
9. Upper and lower boundaries of balconies, including painting of the ceiling
10. Plastered and vermiculite ceilings (not including painting)

Section 106 (1) of the Act places an explicit duty on the body corporate (referred to as the owner’s corporation in the Act) to maintain and repair common property. The owners corporation must ensure that the property is maintained and kept in a state of good and serviceable repair.

Private property includes light fittings and switches, internal walls and tiles and waterproof membranes on internal walls, bathroom fixtures and plumbing above the upper surface of the floor, stoves, dishwashers, private parking spaces, carpet, curtains, floor tiles and any associated waterproofing affixed by an owner after the registration of the strata plan, solar panels installed by lot owner and both the internal and external units of air conditioning.

Fixtures and Fittings on Common Property

Section 106 obliges the body corporate to renew or replace any fixtures or fittings comprised in the common property and any personal property vested in the owner’s corporation. In addition, where a resident has caused any damage or disrepair to common property, the body corporate may defer repair of this damage, when it has taken action against the owner who damaged the property. This doesn’t apply when the repairs are required for safety.

What can I do if my body corporate fails to maintain the property?

The recommended first step where a dispute arises due to a body corporate’s failure to maintain the common property or any other duty, is to internally raise the issue at a general meeting or directly with the body corporate, strata committee or strata manager.

Legal Remedies

Should this fail to yield the desired results, or should the body corporate’s departures from duty be so egregious as to make this a futile step, there are remedies are available via the legal system. Experienced property lawyers can assist with formal negotiation and mediation. If this fails, an application to the New South Wales Civil and Administrative Tribunal for a formal decision can be made.

Section 106(5) of the Act provides direction as to the remedies available to a resident or owner where the body corporate has neglected to fulfil its duties. It states that an owner may recover damages for breach of a statutory duty from the body corporate only for any reasonably foreseeable loss suffered by the owner as a result of the body corporates contravention of their section 106 duties. An owner must bring this claim within 2 years of first becoming aware of the loss.

How can BSM Sydney Lawyers assist you?

Corresponding with body corporates, now known as owners corporations, and bringing actions for breach of statutory duties can be difficult, daunting, and sometimes ineffective. If you are unable to achieve a satisfactory result by directly speaking with the body corporate, it is recommended that you seek legal advice. The experienced and knowledgeable Property Dispute Lawyers at BSM Sydney Lawyers are adept at achieving positive results both in and out of Court. Our property lawyers have extensive experience in all disputes with owners corporations body including when the body corporate fails to maintain and repair a strata title property.

FAQs

BSM Lawyer Sydney have offices conveniently located in Sydney CBD, Sutherland, Parramatta, Shellharbour and Wollongong.