Reviewed and updated 14-10-2026. We re-checked the award figures against the published decisions and removed the awards we could not verify. Two figures have been corrected: Horan is $46,616.26 (not $92,105.52) and Carli is $50,839.23 plus $3,910.71 a month. Vickery is now described correctly — the Court of Appeal confirmed NCAT's power to award damages; the $97,000 was the amount upheld at first instance and the Court of Appeal sent the matter back. We also added the six-year time limit and the risk of fixing common property yourself.
If your owners corporation has failed to repair common property and you've suffered loss because of it, NSW law gives you a real remedy. Under section 106(5) of the Strata Schemes Management Act, a lot owner can claim compensation — and NCAT has made awards from about $11,000 to $447,200.
The strict duty — Section 106(1)
Under section 106(1) of the Strata Schemes Management Act 2015 (NSW), the owners corporation has a duty to maintain and repair the common property. The courts have held this duty is strict — not just a duty to take reasonable care. Once the owners corporation is on notice of a problem, delay and "reasonable efforts" are no defence (Seiwa Pty Ltd v Owners Strata Plan 35042 [2006] NSWSC 1157 at [3], [14], [21]–[23]).
The damages right — Section 106(5)
Section 106(5) lets a lot owner (not a tenant or other occupier) recover reasonably foreseeable loss caused by the owners corporation's breach of its duty. The key requirements:
- The owners corporation must have breached its duty to maintain or repair common property
- You, the lot owner, must have suffered a loss
- The loss must have been a reasonably foreseeable result of the breach
Time limit: a claim must be brought within six years of when the owner first became aware of the loss (s106(6); this was two years before the 2025 reforms).
Losses awarded in the decisions listed below include:
- Lost rent, or a lost opportunity to rent the lot (including short-stay letting)
- Temporary accommodation
- Loss of amenity
- Electricity costs
- Mould treatment
- Repairing lot property damaged by the failed common property (for example, floating timber floors)
No monetary ceiling in NCAT
In Vickery v The Owners – Strata Plan No 80412 [2020] NSWCA 284, the NSW Court of Appeal confirmed that NCAT can order an owners corporation to pay section 106(5) damages, and that NCAT's power to make that order (s232) has no monetary ceiling. Owners don't have to go to the Supreme Court to recover substantial losses.
Verified awards
| Case | Amount | What was awarded for |
|---|---|---|
| Tezel v The Owners – SP 74232 [2022] NSWCATAP 149 | $447,200 | Lost rent. A continuing failure to repair was a continuing breach. |
| The Owners – SP 55468 v Silberstein [2025] NSWCATAP 102 | $283,266.55 + $10,000 | Temporary accommodation, plus loss of amenity |
| Carli v The Owners – SP 56120 [2018] NSWCATCD 55 | $50,839.23 + $3,910.71 a month | Ongoing until the works were complete |
| Horan v The Owners – SP 68307 [2024] NSWCATAP 118 | $46,616.26 | Lost rental opportunity, short-stay letting loss and electricity |
| Hsueh v The Owners – SP 61321 [2024] NSWCATCD 47 | $11,504 | Mould treatment ($935) and floating timber floors ($10,569) |
What can reduce or defeat a claim
- Doing the common property work yourself. The NSW Supreme Court has held there is no section 106(5) recovery for common property work an owner did without approval from the owners corporation or an NCAT order (Colman v The Owners – Strata Plan 61131 [2025] NSWSC 63). Ask the owners corporation in writing first.
- Refusing reasonable access. An owners corporation can argue that part of the loss was caused by the owner unreasonably failing to mitigate — for example, by refusing access or a reasonable scope of work (The Owners – Strata Plan No 2661 v Selkirk [2024] NSWSC 760).
- A lawful deferral. Under section 106(4) the owners corporation may defer repairs only while it is taking action against another person over the damage (such as a builder) and only if the deferral doesn't affect safety of, or access to, lots and common property.
How a claim actually works
- Notify the owners corporation in writing of the defect and the damage it's causing. Email is fine — you need a paper trail.
- Allow access for inspection and repair, and keep a record of every request.
- Get expert evidence. A building consultant's report identifying the source as common property is usually essential.
- Document your losses. Rent records, accommodation receipts, repair quotes, mould reports — everything.
- Consider mediation through NSW Fair Trading. It often resolves matters before a tribunal hearing.
- Apply to NCAT for orders under sections 232 and 106(5), within the six-year limit.
What this means for your scheme
For lot owners: if the owners corporation isn't fixing common property and you're losing money or living with damage, you have a real remedy. Document everything from day one, and don't do the common property work yourself without approval.
For committees: this is the strongest financial reason to act on repairs promptly. Letting a defect drag on doesn't save money — liability keeps running until the work is actually done. NSW Fair Trading can also now investigate and issue compliance notices where repairs aren't done.
Honest pushback on the owners corporation's side: not every repair complaint is a section 106 breach. Damage inside the lot, an owner's own renovations and faulty appliances don't trigger the duty. The defect must be in common property and the loss must be reasonably foreseeable.
A note on apartment vs townhouse cases
Many of the leading damages cases arose in apartment buildings. Section 106 applies in exactly the same way to townhouse and villa schemes. In practice, townhouse claims tend to involve:
- Failed bathroom, balcony, courtyard or planter box waterproofing
- Roof leaks affecting upper-floor living spaces
- Drainage and stormwater problems flooding garages or ground-floor rooms
- Structural movement causing internal damage
Sources
Strata Schemes Management Act 2015 (NSW), s106(1), (4), (5) and (6); s232.
Seiwa Pty Ltd v Owners Strata Plan 35042 [2006] NSWSC 1157. Vickery v The Owners – Strata Plan No 80412 [2020] NSWCA 284. Colman v The Owners – Strata Plan 61131 [2025] NSWSC 63. The Owners – Strata Plan No 2661 v Selkirk [2024] NSWSC 760. Awards as listed in the table.
Full case texts via NSW Caselaw: caselaw.nsw.gov.au