Waterproofing is one of the most expensive and most argued-about items in strata โ€” and townhouse schemes are genuinely different from apartment buildings here. In apartments, almost all waterproofing is common property. In townhouses, the answer often depends on where the leak is, what the strata plan actually shows, and whether a common property rights by-law has ever been registered.

What we're talking about

Waterproofing isn't just one thing. In a townhouse, it includes:

Most waterproofing problems are found after water has already shown up somewhere it shouldn't. Ceilings stain, walls bubble, mould appears, timber rots. By then it's a bigger job than catching it early.

Typical position

Usually OC

  • Membranes under balconies and courtyards
  • Membranes under planter boxes
  • External flashings around windows and doors
  • Roof waterproofing
  • Damage caused by failure of common property waterproofing

Usually owner

  • Sealant around your bath, basin, kitchen sink
  • Bathroom waterproofing inside the lot (in many townhouse schemes โ€” see below)
  • Damage caused by an owner's flexible hose burst
  • Leaks from your own appliances (washing machine, dishwasher)
  • Internal finishes you've installed
  • Waterproofing replaced during a previous owner's renovation (if a by-law was registered)

Often grey

  • Bathroom membrane on the ground floor of a townhouse
  • Who pays to replace tiles above a failed membrane
  • Bathroom renovations done by previous owners
  • Shower base waterproofing
  • Older schemes with no clear records of who installed what

โš  Townhouse schemes are genuinely different here

This is the most important point on this page. In an apartment building, water from a failed bathroom membrane runs into the unit below โ€” so the slab and membrane are almost always common property and the owners corporation has to fix them.

In a townhouse, you usually own the whole building from the slab to the roof. There's no unit below your bathroom. In many townhouse schemes, the strata plan registers the lot boundary as the outside of the building, which means the bathroom slab and its waterproofing membrane are inside your lot โ€” and your responsibility.

This is the opposite of the apartment position. It surprises a lot of owners who've read general strata advice written for apartment blocks.

The only way to know for sure is to read your registered strata plan.

Grey areas and common disputes

Who pays for lifting the tiles?

This is the question that causes most arguments. If a membrane fails under a balcony, the membrane is OC's to fix โ€” but to get to it, the tiles or paving on top (lot property) need to come off. The position is usually:

This is rarely a clean conversation. Get the position in writing from the strata manager before the work starts.

Bathroom waterproofing in a townhouse

This is where the townhouse vs apartment difference matters most. The correct way to work it out is in two steps:

  1. Read the strata plan. Most townhouse strata plans use a "building format" or older style of boundary that shows the lot extending to the outside surfaces of the building. If the strata plan shows the lot including the floor slab, the bathroom membrane inside that slab is your responsibility โ€” not the OC's. If the plan shows the slab itself as common property, the membrane in or on it is common property and the OC must repair it.
  2. Check for by-laws. If a previous owner renovated the bathroom, they may have registered a "common property rights by-law" that shifts maintenance of new waterproofing back to the lot owner. These by-laws bind future owners, so even if you didn't do the work, you may be responsible. If no by-law was registered for a renovation that touched common property, the position can be messy.

For everyday leaks, the practical rule is: sealant around the bath, basin, shower screen and kitchen sink is the owner's responsibility. That covers maybe 80% of bathroom leaks reported in townhouses โ€” failed silicone, not failed membrane.

Why the strata plan controls the answer

The owners corporation has a "strict duty" under Section 106 of the Strata Schemes Management Act 2015 to repair and maintain common property. The leading authority is Seiwa Pty Ltd v The Owners โ€” Strata Plan No 35042 [2006] NSWSC 1157, which confirmed there is no "we'll get around to it" defence โ€” if it's common property and it's broken, the OC must fix it.

But that strict duty only applies to common property. The threshold question is always: is this item common property in the first place? In townhouses, the answer comes from reading the strata plan โ€” not from general assumptions about strata. NCAT and the courts decide these cases on what the plan actually shows, not on what owners assume.

Bathroom renovations by previous owners

If a previous owner renovated their bathroom and a common property rights by-law was registered at the time, that by-law usually puts ongoing maintenance of the new waterproofing on the lot owner โ€” and that obligation passes to whoever owns the lot next. If no by-law was registered and the work touched common property, you may be left with the original responsibility position. Either way, it pays to check the by-laws on title before assuming who has to fix what.

External membrane replacement

Replacing an external above-ground waterproofing membrane (over a balcony, for example) is not as simple as it sounds. It usually needs proper development approval, not just a contractor turning up. The work has to comply with current Australian Standards, which many older buildings don't meet without major changes. The OC needs a proper specification from a building consultant before quoting the work.

Practical next steps

  1. Document the leak โ€” photos, dates, the weather or time of day it appears.
  2. Read your strata plan first. It's the threshold document. Your strata manager can send you a copy. If you've never read it, you'd be surprised what's lot property and what's common property.
  3. Search the by-laws on title โ€” particularly any common property rights by-laws registered for past renovations. Your strata manager has these.
  4. Report it in writing to your strata manager immediately. Don't wait โ€” delays make damage worse.
  5. Don't lift tiles or start repairs yourself until responsibility is sorted. You may need to expose the membrane, but only after the OC's position is clear.
  6. Expect a building consultant. Membrane disputes need expert diagnosis. Guessing is expensive.
  7. Get the responsibility position in writing before work starts โ€” who pays for what, in what order.
  8. If the OC unreasonably delays repair of common property, you may have a claim under Section 106(5) of the Strata Schemes Management Act for losses caused by the delay.

Sources

Strata Schemes Management Act 2015 (NSW), s4 (definition of common property), s106 (strict duty to repair and maintain common property), s106(5) (right to damages for OC's unreasonable failure to perform that duty).

Seiwa Pty Ltd v The Owners โ€” Strata Plan No 35042 [2006] NSWSC 1157 โ€” leading authority on the strict nature of the s106 duty.

Bannermans Lawyers โ€” commentary on waterproofing membrane responsibility in NSW strata.

Australian Standards AS 4654.1 and AS 4654.2 โ€” waterproofing membranes for external above-ground use.

NSW Fair Trading โ€” Strata living and dispute resolution guidance.

This isn't legal advice. Waterproofing disputes are some of the most fact-specific in strata, and townhouse schemes vary widely in how lots and structural elements are described in the registered plan. Two townhouse schemes side by side can have the opposite answer to the same question. If the position is unclear and there's serious damage on the line, get the strata plan and by-laws checked properly โ€” and don't be afraid to seek legal advice before paying for major work.
AH
Alan Hunter
Licensee in Charge, Townhouse Strata ยท Class 1 Strata Manager