Resources

Who Pays? Understanding Maintenance Responsibilities in Community Titles Schemes

Cameron Chisholm, Lawyer Body Corporate and Management Rights

In Queensland community titles schemes governed by the Body Corporate and Community Management Act 1997 and of the applicable modules, one of the most common sources of confusion (and disputes) arises over who is responsible when something goes wrong. Should the Body Corporate or the individual lot owner foot the bill?

Whilst the legislation provides a framework; liability is rarely as simple as “common property equals Body Corporate” and “inside the lot equals lot owner.” In practice, the answer often depends on several overlapping factors.

Common Property vs Lot Property

As a starting point:

• the Body Corporate is generally responsible for maintaining common property; and
• lot owners are generally responsible for maintaining their own lots.

However, this distinction is only the beginning. Many real-world situations fall into grey areas where responsibility is not immediately obvious.

For example, a leaking pipe might run through common property, but only service one lot, or a balcony may form part of a lot but still be subject to Body Corporate obligations depending on how the scheme is structured. In both of those scenarios, responsibility may deviate from the assumptions.

What Factors Affect Liability?

Several factors can influence whether liability for repairs and maintenance rests with the Body Corporate or the lot owner.

Location of the issue

The location of an issue is often the first consideration, but it is not always conclusive. In some instances, something that appears to sit entirely within a lot may still fall within the Body Corporate’s responsibility and vice versa.

Utility Infrastructure

Responsibility for utility infrastructure often depends on who the service benefits. If pipes, wiring or drainage systems service more than one lot, they are more likely to fall within the Body Corporate’s responsibility. However, where they service only a single lot, responsibility will often shift to that lot owner.

Exclusive Use Areas

Exclusive use areas are often misunderstood because, although they are allocated for the use of a particular lot owner, they remain part of the common property. Responsibility for maintenance may also depend on the terms of the relevant exclusive By-Law, which may shift responsibility to the owner.

Cause of Damage

The cause of damage is also a key consideration. Even where the Body Corporate has a general obligation to maintain an area, responsibility may shift if the damage was caused by a lot owner’s contributory actions or failure to act.

Standard Format Plan vs Building Format Plan

The type of survey plan used for the scheme can also affect responsibility. In building format plans, the Body Corporate is generally responsible for structural elements, whereas in standard format
plans, those responsibilities more commonly fall to the lot owner.

Why Disputes Arise

Disputes often arise because questions of liability rarely turn on a single issue. Instead, they typically involve a combination of overlapping factors that must be considered together. For example, a water ingress issue may stem from alterations made by an owner, leading to a defect in common property, which then results in damage within a lot.

In these situations, determining maintenance responsibilities requires a careful analysis of (but not limited to) the legislation, the format plan for the scheme, the By-Laws, improvement register, expert reports and the specific factual circumstances. Without analysis, parties may incorrectly assume responsibility, which can lead to delayed repairs, increased costs, impact on the Body Corporate or owner’s insurance and/or prolonged disputes.

Why It matters

Understanding who is responsible is not just about who carries out repairs. It has broader financial and legal implications, including:

• who pays for rectification works;
• whether any insurance claim can be made and/or impact on insurance;
• potential recovery of costs between parties; and
• exposure to potential legal claims.

Each of these outcomes depends on correctly identifying where responsibility lies from the outset.

How We Can Help

Because maintenance responsibilities in Bodies Corporate often turns on detailed and scheme-specific factors, general assumptions can be misleading. Obtaining the right advice early on can help clarify your obligations, avoid disputes and ensure responsibility is correctly allocated.

If you require assistance understanding maintenance responsibilities in your scheme, our team at MBA Lawyers can provide clear and practical guidance tailored to your circumstances. Reach out here:

Phone: (07) 5539 9688

Website: https://mba-lawyers.com.au/gold-coast/

Disclaimer: this article is provided for information purposes only and should not be regarded as legal advice.